With interest rates near historic lows, many income investors have flocked to high-yielding dividend stocks. That shift enabled many slow-growth blue chips to outperform the S&P 500, but also inflated their stock prices while reducing their dividend yields to historic lows. As a result, many of these dividend darlings could quickly deflate if interest rates rise. Investors looking for fundamentally cheaper stocks with decent yields might consider looking at "hated" dividend stocks that have underperformed the S&P 500's 6% gain over the past 12 months.
In this article, I'll narrow that field to stocks that trade at lower multiples than the S&P 500's price-to-earnings ratio of 25, while paying higher yields than the S&P 500's 2.1% yield. I'll also explain why these companies underperformed the market, how they're turning around their businesses, and why they might be better buys at current prices than more popular income plays: Gap's (NYSE:GPS) and IBM (NYSE:IBM). Income investors who see their favorite dividend stocks are trading at premiums to the market and their industries, with yields that have fallen to historic lows, might be wise to consider less appreciated dividend stocks like Gap and IBM, which aren't precariously perched atop rallies fueled by low interest rates.
Source: Motley Fool
Related Articles:
- 10 Dividend Stocks Building A Growing Cash Stream
- How To Build A Sustainable High Yield Portfolio
- How To Buy Dividend Stocks At The Bottom
- 10 Stocks That Have Paid Dividends Since The 1800s
- Are You Patient Enough To Be Wealthy? These 7 Dividend Stocks Will Help You Wait
2 Hated Dividend Stocks to Buy Now
Posted by D4L | Sunday, November 06, 2016 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Dividend Growth Stocks News
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
We screened our 24/7 Wall St. dividend equity research database and found 5 stocks that combined can generate over $3,000 of annual passive ...
-
The stock market has been on an upward path of late, with some of the most prominent stocks hitting astronomical highs. The dividend yield o...
-
Dividend growth stocks can be incredibly attractive investments if you crave recurring income. As these types of stocks raise their dividend...
-
The most dependable dividend stocks typically have a long track record of sustaining payouts through different market cycles. Companies with...
-
Dividends can be a tremendously powerful part of your investing strategy. Not only can they give you a continuing source of cash to reinvest...
-
In my opinion, there are three criteria investors should consider when evaluating a particular stock for their portfolio. The first is histo...
-
In this article, we discuss 5 best March dividend stocks to buy. If you want to read our detailed analysis of dividend capture strategy and ...
-
As the broader stock rally broadens to some of the more “boring” corners of the market, it’s the higher-yielding dividend plays that could s...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.