Dividends4Life: 2 Beaten-Down Dividend Stocks to Buy

2 Beaten-Down Dividend Stocks to Buy

Posted by D4L | Tuesday, June 07, 2016 | | 0 comments »

Up and down the markets go, where will they stop? Nobody knows. There's been enough drama on Wall Street thus far in 2016 to rival the latest Kim Kardashian ploy or the newest reality television show. That drama has included the worst ever two-week stretch to start a year, followed by the biggest quarterly reversal in 83 years when the market climbed strongly to finish the first quarter. West Texas Intermediate crude prices hit a 12-year low and natural gas prices hit a 17-year low. Gold posted its best quarter in 30 years; Japan sold a negative interest rate 10-year bond for the first time; and even the people's champion, Apple, reported a year-over-year sales decline, something it hadn't seen in almost 13 years. And I'm not even going to touch the subject of China's unpredictable economy.

On the bright side, if the market drama continues, it will surely bring investors more opportunities to pick up dividend stocks on the cheap. Here are two to keep an eye on. Cummins (NYSE:CMI) has essentially rebounded throughout 2016 thus far, its rise starting just about when the calendar flipped over. However, the stock is still trading 18% lower than its level twelve months ago, and it finds itself roughly in the middle of its 52-week trading range. Ask any company that depends on coal in any way for part of its business, and they'll tell you the past couple of years have been a complete nightmare. That goes for those that sell heavy mining equipment, to the miners themselves, and the railroads -- such as Union Pacific (NYSE:UNP) -- that carry the majority of that coal across the country. The good news for potential investors is that Union Pacific has managed the headwinds caused by slumping coal demand and volume pretty well.

Source: Motley Fool

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