At the end of every month, I send out a spreadsheet that lists out the dividend stocks that I believe to be undervalued.
This is the end result of 100’s of hours of research every month.
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Now, let’s dive in.
LIKE ALWAYS… Before we even begin to look at the stocks listed on the spreadsheet, it’s important we understand a few important points.
I almost always discuss these points in my paid newsletters, but it’s important we revisit them for newcomers and as a reminder to ourselves.
1. Just because a stock is undervalued, does not mean you should buy it.
I research dividend stocks for hours on a daily basis. Just because I find one that is undervalued, does not mean it’s a good fit for my portfolio.
2. What’s considered a good buy for one person, may be a bad buy for another person.
If you are someone close to living off dividends or are simply looking to maximize dividend income long term, then it’s likely that you wouldn’t want to buy a stock with a low starting yield, even if it was undervalued. The opposite is true as well.
3. Understand what Time Risk is.
Time risk is the risk associated with the length of time it takes for an investment to reach its desired outcome.
In the context of waiting for stocks to reach intrinsic value, time risk arises from the uncertainty regarding the duration it will take for the market to recognize and reflect the true value of the stock. During this waiting period, investors are exposed to the possibility of missed opportunities, changes in investment goals, or unforeseen events that could effect the investment's performance.
Basically, it can take time for a stock to revert to intrinsic value.
4. The Market Moves in Cycles
It can be amazing how fast things change.
Opportunities come and go fast.
The market undoubtedly moves in cycles, and it’s important to be prepared when those opportunities occur.
With the exception of a few big tech stocks, the market is off to a hot start in 2025.
On our list this month we have 16 stock with 2 new additions, along with 2 removals.
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