Dividends4Life: Are These Undervalued, Cash-Rich Dividend Stocks A Bargain?

Dividend stocks aren't usually exciting investments. Income investors flock to them because of their stability and potential to build long-term wealth. One way dividend stocks accomplish the latter is by increasing their payouts, which they can do instead of investing their profits in acquisitions, capital expenditures, and stock buybacks, among other options. In fact, several companies did just that earlier this year. According to the S&P Dow Jones Indices, dividend increases reached a record-high of $17.8 billion in the first quarter of 2014.

We ran a screen on dividend stocks with this in mind. To begin, we constructed a group of dividend stocks that have plenty of cash on hand as illustrated by a cash/operating expense ratio of 4 or higher. We were left with three stocks on our list. Do you think these stocks will increase their dividends in the near future? Use this list as a starting point for your own analysis: Cisco Systems, Inc. (CSCO), Janus Capital Group, Inc. (JNS) and MCG Capital (MCGC).

Source: Seeking Alpha

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