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Growth Stocks That Just Boosted Their Dividends

By 11/16/2020 No Comments

Growth stocks to buy now? 12 high growth stocks recently raised their dividends… But are all these stocks a buy NOW? 👉 Attend my FREE training TODAY: http://learn.investdiva.com/yes

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There’s been a massive media buzz about 12 growth stocks that recently raised their dividends and the main hype was about not having to choose between growth potential and dividend payments when it comes to picking the best stocks to invest in. In this video, I’m gonna take a look at all these 12 stocks that have recently boosted their dividend payments and will share my opinion on which ones I’ll be staying away from, and which ones I’ll be buying, at what price, and why. 

 

Growth Stocks That Just Boosted Their Dividends (LIST)

let me first share with you the list of the 12 stocks that have recently announced a higher dividend payment according to IBD and  S&P Global Market Intelligence.

Growth Stocks that Boosted Their Dividends

Growth Stocks that Just Boosted Their Dividends

 

These stocks are spread across different industries from Health Care, to tech like Microsoft to consumer discretionary and industrial sectors. Microsoft was the first one to announce a dividend hike back on September 15th, and most recently, D.R. Horton and Kansas City Southern announced their respective dividend hikes on November 10th. 

Should You Add All These Growth Stocks To Your Portfolio?

Now, of course, I wouldn’t want to add all of these stocks to my portfolio especially if I already have a well-diversified portfolio that gives me good exposure to all sectors, and especially if I have already invested heavily in very highly dividend-paying stocks I shared with you in my previous video. The stocks I shared in that video pay a much higher dividend yield. But growth potential isn’t as high as the ones in this video. So if you haven’t watched that, please make sure you take a look at it as well. Then create an investment strategy depending on your risk tolerance and financial goals. 

Remember, what could work for me, may not work for you because we are likely at different stages of our investing journey, our risk tolerance is different, our cash flow and financial needs are different.

So if you have any doubt on how to create an investment strategy and a portfolio that’s just right for you, make sure you attend my free masterclass today. Just by attending the free masterclass today, you’ll also get my risk management toolkit for free so you can get started on the right foot right away.

 

My Strategy Development Method

Now let’s get to my top picks that I’ll be adding to my portfolio, and the optimal prices I’d want to buy at. It’s worth mentioning that I already have Microsoft and Estee Lauder in my portfolio, so I’m also gonna reveal if I’ll be adding any more shares of these to my portfolio based on my market analysis.

The first step is using my signature Invest Diva Diamond Analysis (IDDA) to get a holistic view of each of these assets. This means analyzing each asset from a fundamental, market sentiment, and technical price action points of view, and then determining whether the asset suits my unique risk tolerance and financial goals by plugging it into my Invest Diva System.

I already conducted the IDDA and created this spreadsheet to show you the fundamental valuation, market sentiment, and price valuation of each of these assets, and I’ve sorted them based on ex-dividend date which is the date by which you must have bought the stock in order to receive this quarter’s dividend payments. Any ex-dividend payment before today means we won’t be getting the dividends this quarter and must wait for the next one. 

Growth Stocks that Boosted Their Dividends

Growth Stocks that Just Boosted Their Dividends

Now on the bright side, if the stock is currently overvalued, that means we have time for it to drop lower and buy at an optimal price within the next 3 months.

Take Lennar, for example. Its ex-dividend payment was back on October 15th, and it’s actually one of the highly valuated stocks on our list, both from fundamental and market sentiment points.

Lennar (Len) - Dividend Growth Stock Chart Analysis

Lennar (Len) – Dividend Growth Stock Chart Analysis

Its stock price is currently at fair value but we’re expecting a pullback based on price action analysis. So if this stock is something that fits well within your portfolio, what you can do, is to set buy limit orders at lower prices and wait for them to go through before the next dividend payment is due so you take advantage of both capital gains and dividend payments throughout 2021. 

Growth Stocks I WON’T Be Adding To My Portfolio

Lets’ start with growth stocks on this list that I won’t be adding to my portfolio, simply based on fundamentals and sector.

Cummins (CMI)

The company Cummins is a leading manufacturer of diesel engines. This industry does not excite me at all. I don’t think diesel is going to be even relevant in the next decade. So for that reason, for my long-term growth portfolio, I won’t be adding anything in this sector.

Cummins (CMI) Growth Stock Chart - Price Action

Cummins (CMI) Growth Stock Chart – Price Action

 

Texas Instruments (TXN)

The next one I won’t be adding to my portfolio is Texas Instruments. This one is actually a semi-cool company and they produce semiconductors for well-known calculators.  But my portfolio is already very tech-heavy, and TXN isn’t one of the most exciting tech stocks to me. So I’m gonna pass.

Texas Instruments (TXN) Dividend Growth Stock Chart Analysis

Texas Instruments (TXN) Dividend Growth Stock Chart Analysis

Cintas (CTAS)

Cintas is another one I’m gonna pass on, because even though their dividend safety grade is pretty high and they increased it by 10%, its dividend yield is still pretty low, and not only that since Cintas’ core uniform services business is correlated with U.S. employment trends, its operating performance is highly cyclical in nature. So this kinda defeats the purpose of dividend investing. If you’re investing in dividend stocks, you’d want to hold it long term and collect high dividends or at least see a considerable capital gain… Cintas may not give us either.

 

Cintas (CTAS) - Dividend Growth Stock

Cintas (CTAS) – Dividend Growth Stock

 

West Pharmaceutical Services (WST)

Next is West Pharmaceutical which raised its dividend by 6.25% to $0.17 on October 28th. This one is interesting, because is one of the large players in the healthcare packaging space, and plays a crucial role in helping its customers bring new drugs and treatments to the end-markets. With the Coronavirus vaccine aiming to start distribution in early 2021, this stock is one to keep an eye on and see whether or not they will have any role in the distribution. Its stock price is currently way overvalued but it could be an interesting buy if it pulls back towards $262 and $236 which are key psychological levels based on Fibonacci price action analysis. But for me, there’s a better stock in the same category that may be a better pick. We’ll get to it in just a little bit.

 

West Pharmaceutical Services (wst) - Dividend Growth Stock Chart Analysis

West Pharmaceutical Services (wst) – Dividend Growth Stock Chart Analysis

 

Again, if you’re having any difficulty understanding how my analysis process works, please make sure you attend my free masterclass by going to learn.investdiva.com/yes

 

Newmont (NEM)

Another stock from this list that I’m gonna cross out is Newmont Corp. While this is the world’s largest gold producer, Newmont is actually exposed to a lot of unnecessary risks when it comes to its mining and management. So I’d rather invest in gold-backed exchange-traded funds to get exposure to gold. 

 

Newmont (NEM) - Dividend Growth Stock Technical Analysis

Newmont (NEM) – Dividend Growth Stock Technical Analysis

 

Kansas City Southern (KSU)

I’m also gonna cross out Kansas City Southern (KSU) because this isn’t a sector I’m interested in exposing myself to.

Kansas City Southern (KSU) - Dividend Growth Stock Technical Analysis

Kansas City Southern (KSU) – Dividend Growth Stock Technical Analysis

Dividend-Paying Growth Stocks I WILL Be Adding To My Portfolio

We’re now left with Lennar, AmerisourceBergen, Microsoft, Whirlpool, Estee Lauder and D.R. Horton.

Estee Lauder (EL)

As I said earlier, I’m already invested in Estee Lauder and Microsoft. I’m not going to add any more EL because it’s way overvalued right now. But here’s a quick price action review and technical analysis if you’re interested.

Estee Lauder (EL) - Dividend Growth Stock Technical Analysis

Estee Lauder (EL) – Dividend Growth Stock Technical Analysis

 

Microsoft (MSFT)

I will be adding more Microsoft at optimal price because they have a very wide economic moat, its involvement with all the right sectors that could see more growth in the coming years, including Microsoft Azure cloud, AI, and growing partnerships with the largest corporations in the US and around the world. 

Looking at the MSFT chart, you’d see that its price is consolidating after reaching an all-time high level of 232 back on September 2nd, the future Ichimoku cloud is flat, leaning bearish and we have strong support forming above 200. With that, my buy limit order ideas include 211, 200, and 187.

Microsoft (msft) - Dividend Growth Stock Technical Analysis

Microsoft (msft) – Dividend Growth Stock Technical Analysis

Keep in mind that its ex-dividend date is on November 18, so if you don’t have any Microsoft and are investing for dividend payments, you might want to bring your BLS higher. 

 

AmerisourceBergen (ABC)

When it comes to the healthcare sector, I’m interested in adding AmerisourceBergen (ABC) which is the leading global third-party logistics provider. AmerisourceBergen handles a third of the pharmaceutical distribution market, which gives it an edge, and its infrastructure provides scale and the ability to effectively negotiate to price and provide commercialization, inventory, and compliance support.

AmerisourceBergen (ABC) - dividend Growth Stock Technical Analysis

AmerisourceBergen (ABC) – dividend Growth Stock Technical Analysis

In terms of price valuation, the company is actually still below its 2015 all-time-high levels but has recently broken above its 2018 high which gives us a long-term bullish outlook. It also has a higher dividend yield compared to its peers but we have time until February 2021 to catch the next dividend payment. For that reason, I would set my buy limit orders at 105, 98, and 92 respectively.

Whirlpool (WHR)

When it comes to the Consumer Discretionary sector on this list, I’m interested in Whirpool. However, keep in mind that Whirpool has a history of being super volatile so it’s important to set buy limit orders instead of buying at the current market price. On the other hand, its ex-dividend date is November 19th, so if you want to catch this quarter’s dividends, you better act fast.

Whirlpool (WHR) - Dividend Growth Stock Chart

Whirlpool (WHR) – Dividend Growth Stock Chart

 

For that reason, I’ve set my BLs at around the current market price at 181, 171, 159, and 140. I’ll be monitoring this before November 19th  and will make necessary adjustments to my BLs as needed. 

D.R. Horton (DHI) & Lennar (LEN)

Last but not least, we have  D.R. Horton. and Lennar which are almost identical when it comes to fundamental and market sentiment and even technical analysis valuations.  If you’re interested in expanding your portfolio to the homebuilding sector, in my opinion, you can’t go wrong either way. The only immediate advantage that DHI has is that its ex-dividend date is not until December 3, so if you buy anytime before that, you’d get paid this quarter’s dividend payments, whereas, for Lennar, you’d have to wait until 2021. 

D.R. Horton (DHI) - dividend Growth Stock Chart Price Action Analysis

D.R. Horton (DHI) – dividend Growth Stock Chart Price Action Analysis

My BL ideas for DHI include 67, 62, and 53.

There you have it! My top picks within the stocks that recently raised their dividend payments, as well as the optimal prices you can set your buy limit orders at. If you haven’t already, make sure to secure your spot for my free training today to get my risk management toolkit too!

 

 

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