Dividend growth investing is a very popular approach which can fit within the ModernGraham methods. This article will look at companies reviewed by ModernGraham which have grown their dividends annually for at least the last 20 years. Out of over 900 companies, only 70 meet this criteria. Defensive Investors are defined as investors who are not able or willing to do substantial research into individual investments, and therefore need to select only the companies that present the least amount of risk.

Enterprising Investors, on the other hand, are able to do substantial research and can select companies that present a moderate (though still low) amount of risk. Cardinal Health (NYSE:CAH) qualifies for both the Defensive Investor and the Enterprising Investor. The Defensive Investor is only initially concerned with the low current ratio. The Enterprising Investor has concerns regarding the level of debt relative to the current assets. As a result, all value investors following the ModernGraham approach should feel comfortable proceeding with the analysis. How to calculate the intrinsic value of a stock,

4.43 for 2018. This level of demonstrated earnings growth outpaces the market's implied estimate of 3.14% annual earnings growth over the next seven to 10 years. As a result, the ModernGraham valuation model, based on the Benjamin Graham value investing formula, returns an estimate of intrinsic value above the price. 1.81 per share, for a yield of 2.8%, putting it among the best dividend-paying stocks today. Its PEmg (price over earnings per share - ModernGraham) was 14.78, below the industry average of 43.8, which by some methods of valuation makes it one of the most undervalued stocks in its industry.

Aflac (NYSE:AFL) qualifies for both the Defensive Investor and the Enterprising Investor. In fact, the company meets all of the requirements of both investor types, a rare accomplishment indicative of the company's strong financial position. The Enterprising Investor has no initial concerns. As a result, all value investors should feel comfortable proceeding with the analysis.

8.08 for 2018. This level of demonstrated earnings growth outpaces the market's implied estimate of 1.21% annual earnings growth over the next seven to 10 years. As a result, the ModernGraham valuation model returns an estimate of intrinsic value above the price. 1.74 per share, for a yield of 2%. Its PEmg was 10.92, below the industry average of 22.76, which by some methods of valuation makes it one of the most undervalued stocks in its industry.

Cincinnati Financial (NASDAQ:CINF) qualifies for both the Defensive Investor and the Enterprising Investor. In fact, the company meets all of the requirements of both investor types, a rare accomplishment indicative of the company's strong financial position. The Enterprising Investor has no initial concerns. As a result, all value investors should feel comfortable proceeding with the analysis. 4.11 for 2018. This level of demonstrated earnings growth outpaces the market's implied estimate of 4.82% annual earnings growth over the next seven to 10 years. As a result, the valuation model returns an estimate of intrinsic value above the price.

2 per share, for a yield of 2.7%, putting it among the best dividend-paying stocks today. Its PEmg was 18.15, below the industry average of 20.16, which by some methods of valuation makes it one of the most undervalued stocks in its industry. Cintas (NASDAQ:CTAS) is suitable for the Enterprising Investor but not the more conservative Defensive Investor. The Defensive Investor is concerned with the high PEmg and price-book ratios.

The Enterprising Investor is only concerned with the level of debt relative to the net current assets. As a result, all Enterprising Investors should feel comfortable proceeding with the analysis. 5.53 for 2018. This level of demonstrated earnings growth supports the market's implied estimate of 11.17% annual earnings growth over the next seven to 10 years. As a result, the valuation model returns an estimate of intrinsic value within a margin of safety relative to the price.

1.33 per share, for a yield of 0.8%. Its PEmg was 30.84, below the industry average of 32.93, which by some methods of valuation makes it one of the most undervalued stocks in its industry. Air Products & Chemicals (NYSE:APD) is suitable for the Enterprising Investor but not the more conservative Defensive Investor. The Defensive Investor is concerned with the high PEmg and price-book ratios.

The Enterprising Investor has no initial concerns. As a result, all Enterprising Investors should feel comfortable proceeding with the analysis. 7.66 for 2018. This level of demonstrated earnings growth supports the market's implied estimate of 6.66% annual earnings growth over the next seven to 10 years. As a result, the valuation model returns an estimate of intrinsic value within a margin of safety relative to the price.