20 Stocks You Should Not Buy Right Now

With the market reaching all time highs lately, it is getting harder and harder to find under and fair valued stocks to purchase for your dividend growth portfolio.

When investing, the valuation we pay for a company’s stock is very important.  If you make the mistake of over paying for a very stock, you will most likely end up with disappointing market returns over the next few years.

Right now, there are some great companies that would fit perfectly in a dividend growth stock portfolio.  Unfortunately, due the high rise of the stock market, these stocks aren’t trading at great valuations and investors buying at these levels may end up disappointed with overall returns.

Following are 20 great dividend growth stocks that you should NOT be buying at the present time.  Instead, have patience and wait for a market correction before picking up shares in these companies.


Coca-Cola (KO) – This dividend growth king is selling at a current P/E right around 22.  Coca-Cola is a leader in the beverage industry and can be found in many dividend growth portfolios.  I’d love to own some more shares, but the price is too high right now.
General Mills (GIS) – This consumer foods company is a great fit for dividend growth investors.  But paying the current 18.5 P/E multiple is not the best investment.  Look for the price to fall before picking up shares of this cereal giant.
McDonald’s (MCD) – This fast food restaurant recently announced dropping the line of Angus burgers do to low demand.  The thought is that prices were too high for the quality meat.  The stock price is also too high and prudent investors would be wise to wait for a better entry point than the current 18.6 P/E.
Walgreen’s (WAG) – Not long ago investors could get some Walgreen’s shares at a wonderful price due to the conflict with Express Scripts.  The conflict has since been resolved and share price has taken off.  WAG currently trades at a P/E near 22 which is too rich for my blood!
Colgate-Palmolive (CL) – Another staple amongst dividend growth investors, this consumer products company is currently trading at a P/E near 25!  I’d recommend waiting for a pullback before buying any more shares of this wonderful company.
Clorox (CLX) – Another popular consumer products company that is in popular demand right now.  Clorox is currently trading with a P/E just above 20.  Whenever the market has a correction, investors should take advantage and pick up some shares.  Until then, have some patience.
Emerson Electric (EMR) – This industrial technology company is a long time dividend grower.  It’s a great fit in most dividend growth portfolios.  Unfortunately it is currently trading with a P/E of 20.7 and investors should wait for a better price before picking up shares.
Genuine Parts Co. (GPC) – This automobile replacement parts company is the simple kind of business dividend growth investors love.  They are currently selling at a P/E just under 19.  Investors should be patient for a better entry point.
Hormel Foods (HRL) – Hormel is another consumer foods company that has alot of popularity right now.  The current P/E for this packaged meats company is 22.5.  I’d advise waiting for a lower price before buying shares of this food company.
Johnson & Johnson (JNJ) – This healthcare company is another king of dividend growth.  I’d love to have some shares for my portfolio.  Unfortunately it is trading at a current P/E above 23 and I am not willing to pay that kind of price.
Kellogg Co. (K) – Another great consumer foods company that is slightly overvalued at the present time.  Investors would be better off buying a box of Kellogg’s Frosted Flakes to hold them over while waiting for the P/E of this company to come down from the current value of 25.5.
Kimberly-Clark (KMB) – A consumer products company with little growth in recent years.  KMB is still trading at a current P/E of 22.5.  I’d hold off on picking up shares of this dividend grower.  See my recent analysis of Kimberly-Clark.
PepsiCo (PEP) – The beverage and snack food company that I would love to own.  However, the price is not quite right.  Currently selling with a P/E over 21, I’ll wait for a better entry point.
Procter & Gamble (PG) – Another consumer products company worthy of most dividend growth portfolios.  I’d wait to pick up more shares of this company though as it’s currently trading at a P/E of close to 20.
Union Pacific (UNP) – I’m a fan of railroads but this one is currently valued too high.  Buyers at today’s price will be paying above 18 times earnings for the luxury of owning this great railroad.
Automatic Data Processing (ADP) – This provider of human resource services and payroll services is flying high right now.  The P/E currently stands near 24.5 and I’d hold off for a better price.
Hasbro (HAS) – I’m a fan of this toy company but the current P/E is at 19.  Investors will be better off waiting for a slightly better buying price.
Reynolds American (RAI) – Tobacco companies continue to make big profits despite health risks.  Reynolds American is selling at a current P/E of 18.  I’d wait for a better entry point before buying this cigarette maker.
AT&T (T) – The telecommunications giant has a long history of dividend growth and a nice dividend yield.  But investors will be paying a hefty price to buy in right now.  AT&T is currently selling at just under 29 times earnings.
Sysco Corp (SYY) – This foodservice company offers a long history of dividend increases and a decent yield.  However it is currently priced too high at a P/E just under 20.  Have some patience and buy some shares of this company once the price has fallen to more reasonable levels.

The above stocks are great companies.  I’d love to own any one of them at the right price.  Unfortunately, right now they are only available at the wrong price.

There are lots of great companies trading at prices that are just too high right now.  However, investors should not get discouraged!  There are still some quality dividend growth companies selling at reasonable valuations.

If you’re having trouble finding companies to buy in this high priced market, check out these 10 dividend growth stocks trading at reasonably fair valuations.


Aflac (AFL) – This supplemental insurance company is currently priced with a P/E of 8.5.  Investors have concerns over the weakness of the Japanese Yen since Japan is where Aflac does the majority of business.  However,  this company has a strong history of earnings and dividend growth and is worth picking up at these historically low prices.
Deere & Co. (DE) – The maker of the big green tractor is currently selling at 11.5 times earnings.  They offer reasonable earnings and dividend growth as an industry leader in farming and construction equipment.
ConocoPhillips (COP) – This oil and natural gas company is currently selling at 10.6 P/E.  Energy is a good sector to be in as demand is sure to stay strong especially as the world economy improves.
Intel (INTC) – This microchip processor maker sells at a P/E around 12.  Their may be concern of lower demand due to technology users switching from personal computers to mobile devices.  However, I still believe there will be demand for personal computers and expect this company to innovate with the changing times.
Harris Corp. (HRS) – Harris is a high tech communications equipment provider.  They sell to governments and private clients.  Investors can pick up shares of this company at 10.5 times earnings due to worries of government budget cuts.  I look for this company to continue their history of earnings and dividend cuts as I’m doubtful governments will ever learn to reign in their spending.
Chevron (CVX) – Another leading oil company selling at a decent price.  Why not increase your portfolios exposure to the one of the best oil companies in the world by picking up shares at a near 9 P/E ratio.
Lorillard (LO) – Looking for a tobacco company trading at a decent valuation?  Looking for a higher yielding company to add to your portfolio?  Consider picking up shares of this cigarette maker.  Lorillard is currently trading at a P/E of just under 14 with a dividend yield just over 5%.
Wells Fargo & Co. (WFC) – Banks have a bad reputation after the financial crisis of 2008.  However, Wells Fargo happens to be one of the nations best run banks and is worth considering for dividend growth investors as they begin the growth of their dividend again.  Investors should especially like the current valuation with a P/E of 10.8.
Exxon Mobil (XOM) – One of the world’s biggest companies, Exxon Mobil is very shareholder friendly with dividend payments and share repurchases.  Investors should definitely have a piece of this company in their portfolio.  You can currently pick up some shares of Exxon Mobil at a P/E near 9.2.
Caterpillar (CAT) – Another construction machinery company worth considering, especially at today’s valuation of 11.9 P/E.

What do you think?  Are you still finding decent values of companies to purchase?  Are you buying some of the dividend growth greats regardless of price?  Share your thoughts in the comments!


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