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Deep Value Dividend Growth Index Week 32 Update: Presenting The 22 Best Undervalued Dividend Growth Stocks To Buy Today

Posted On July 6, 2017 12:35 am
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Click here to read up on the intro to this portfolio, the theory behind it, and its methodology.

Weekly Economic Data Review

As with the last few weeks, last week saw a mix of good and bad soft and hard data.

For example, while the Chicago PMI (midwest manufacturing) hit a 3 year high, consumer confidence remained at near multi-year highs, Q1 GDP growth estimates were increased to 1.4%, and consumer income and spending came in better than expected (+0.4% month over month), jobless claims increased, durable goods orders fell 1.1%, and unexpectidly fell 0.8% (1.7% YoY).

This points to continued steady, though disappointgly slow growth, which can be seen in the New York and Atlanta Fed’s real time GDP growth estimates.

New York Fed GDP NowCast: 1.9% for Q2 1.6% for Q3 (Q2 unchanged Q3 up 0.1%)

Atlanta Fed GDPNow: 3.0% for Q2 (up 0.3% from last week)

Fortunately the current economic growth forecasts are up slightly, which is certainly better than the recent quarterly trend of steadily declining forward growth expectations as the quarter progresses.

The most important factor, continues to be the forward super index, a metaanalysis of 9 other leading economic indecies, indicates that the probability of a recession within the next 3-4 months is just 2.36%, up an insignificant 0.05% since last week.

In other words, while economic growth may be disappointing, the odds of another recession in the next 9 months remains well under 10%.

 

About author

Dividend Sensei
Dividend Sensei

I’m an Army veteran and former energy dividend writer for The Motley Fool. I currently write for both Seeking Alpha, Simply Safe Dividends, Investorplace.com, and TheStreet.com.

My goal is to help all people learn how to harness the awesome power of dividend growth investing to achieve their financial dreams, and enrich their lives. With 20 years of investing experience, I’ve learned what works and more importantly, what doesn’t, when it comes to building long-term wealth and income streams. I’m currently on an epic quest to build a broadly diversified, high-quality, high-yield dividend growth portfolio that:

1. Pays a 4% to 5% yield
2. Offers 9% to 10% annual dividend growth
3. Pays dividends AT LEAST on a weekly, but preferably, daily basis

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