Seeking Alpha Seeking Alpha Portfolio App for iPad Profile| Send
Message| (1,208)    Dividend growth investing, as the name
implies, involves buying the stocks of companies that
consistently increase their dividends year after year. Well-
known examples of dividend growth stocks are Chevron (CVX),
Coca-Cola (KO), Johnson & Johnson (JNJ), and McDonald's (MCD),
all of which have increased their dividends for at least 25
consecutive years. The goal of buying such stocks is to build a
sustainable stream of dividends that will grow faster than
inflation and serve as a reliable source of income in
retirement. Naturally, dividend growth and yield are important
criteria used in stock selection, but many investors also pay
close attention to valuation when buying and selling stocks.
Valuation involves estimating the intrinsic value of a stock, in
either absolute or relative terms, to determine whether the
stock represents an attractive investment at the current price.
An undervalued stock, which trades below its intri