Good Morning,
I wanted to let you know that I just added to an attractively valued dividend growth stock in the retirement account.
The company has increased dividends for 17 years in a row, has a ten year annualized dividend growth rate of close to 14.90% and sells at an attractive valuation of 19 times forward earnings and a dividend yield of 3%.
I decided to add to the company, after it recently announced a healthy dividend raise. This signals optimism. That being said, in recent years the dividend raises have been higher than earnings growth, which has led to an increase in the dividend payout ratio. I will monitor this situation going forward.
From a risk management perspective, this is likely the last investment I can make in this company, because I am now fully allocated to the most I could risk per this security.