The S&P 500 currently trades at 25 times earnings, its highest multiple in seven years. Meanwhile, low interest rates are causing income investors to buy more dividend yielding stocks instead of bonds -- which has inflated the multiples on many dividend stalwarts to historically high levels. Johnson & Johnson and General Mills, for example, respectively trade at 23 and 24 times earnings, but their yields are near multi-year lows.
It might seem hard to find any cheap dividend stocks in this frothy market. However, income investors should note that "mature tech" stocks like Apple (NASDAQ:AAPL), Cisco (NASDAQ:CSCO), and IBM (NYSE:IBM) still offer decent dividends with multiples under 15.
Source: Motley Fool
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