3 Dividend Stocks to Buy This Week!

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3 STocks to Buy this week

The stock market continues to soar. We continue to receive positive news and updates about the development, and approval, of a COVID-19 vaccine. The prospect of vaccines has resulted in many green days in the market! Still, even without the recent vaccine news, the stock market has been trending upwards over the last several months. In fact, the stock market reached an all time high once again in November. The following chart shows the S&P 500’s performance since June. S&P 500

Still, despite this, we still found 3 undervalued dividend stocks to buy and watch this week! We are always on the lookout to identify undervalued dividend growth stocks to add to our portfolios. After all, dividend investing is the EASIEST form of passive income (in our opinion). There is no better feeling than receiving a dividend check while you are sleeping.

Read: Why Dividend Investing is the EASIEST form of Passive Income

We find undervalued stocks using the trusted Dividend Diplomats Dividend Stock Screener. Our stock screener is a simple, 3 step screener that we use with every stock purchase. This provides a strong base for our stock research and allows us to identify some of the best stocks to continue researching to determine if they are a stock to buy. The three steps of our screener are:

Metric #1: Price to Earnings Ratio Less than the S&P 500 – The current P/E ratio of the S&P 500 is over 35X!

Metric #2: Dividend Payout Ratio Less than 60% – We believe that a payout ratio of 60% or less provides strong dividend safety. In fact, we think a dividend payout ratio of 40% – 60% is considered PERFECT. A payout ratio in this range allows the company to both reinvest in the companies operations and pay a strong dividend to shareholders.

Metric #3: Dividend Growth History – If 2020 has taught us anything, it is the importance of investing in companies with a history of increasing their dividend through various economic cycles. That is why we review a company’s history to make sure they have demonstrated their ability to increase its dividend through good times and bad.

Read: Dividend Aristocrats with a PERFECT Payout Ratio

Each of the 3 companies on our stocks to buy watch list are companies that performed well in the dividend stock screener. You will have to watch our video find out which companies made the list.

—-> Watch the Video: 3 Dividend Stocks to Buy This Week <—-

However, as a preview, here are the profiles and metrics of the companies included on our watch list.

Mystery Dividend Stock #1: Our first dividend stock operates in the pharmaceutical industry. The company’s P/E Ratio is 8.3X and a dividend payout ratio of 42.6%. The company has increased its dividend annually since they were spun-off.

Mystery Dividend Stock #2: Our second dividend stock operates in the technology sector. The company’s P/E Ratio is 10X and a dividend payout ratio of 56% .Also, the company is one of the newest members of the exclusive Dividend Aristocrat family!

Mystery Dividend Stock #3: Our third dividend stock is a REIT that specializes in data storage. The company’s P/FFO Ratio is 11.1X and a dividend payout ratio of 107%. That is by far the highest payout ratio on the list, and we discuss why we are comfortable with the payout ratio during the video. The company has a solid dividend growth history; however, we are not expecting a dividend increase in the near term.

Can you guess the identity of the 3 mystery stocks? Further, Let us know if you like us posting this video link on our blog site, so that you can see our other content on that platform in addition to our blog! Other resources we mention in the video that can help you build your dividend stock portfolio:

Thank you everyone. Happy Investing!

-Dividend Diplomats

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