Dividend Champions Smackdown XI: PEG Ratio Edition

Dividend Champions Smackdown XI In previous installments of the Smackdown series, I screened the Dividend Champions list of companies that have paid higher dividends for at least 25 straight years (which can be found here) using factors such as yield, payout ratio, and, most recently, the Price/Book Value ratio. This time, I decided to start with the PEG ratio, which compares a stock's Price/Earnings ratio with its expected earnings growth rate (in the case of Yahoo data, the 5-year expected growth rate). The PEG ratio is a basic measure of how the stock market is valuing not only current but expected earnings and is sometimes associated with GARP (Growth at a Reasonable Price). The lower a PEG ratio is, the better, and ratios of less than 1 are considered undervalued situations, but typical ratios may now be a higher. So, while a P/E of 15 may be considered better than... Read more