Whether a stock is cheap or not has nothing to do with its actual price. There are stocks in the market right now that would be overpriced at one penny and others, like Apple (AAPL), that are a bargain at $400+. (In the case of Apple, analysts predict the stock could go as high as $700 a share within the next year.) Instead, investors would do better to concentrate on how the stock is priced. Specifically, how a stock is priced relative to its book value (price-to-book ratio, or P/B ratio) and how it is priced relative to its earnings (price-to-earnings ratio, or P/E ratio).
Dividends are another issue. Dividends can be used to offset losses as well as reinforce returns. As such, finding a stock that pays high dividends while offering a low P/B ratio, as well a low P/E ratio usually means a good thing. Using the stock screener at finviz, we identified six stocks that fit this criteria. Specifically, we looked for stocks with high dividends, P/B ratios less than 1.5 and P/E ratios less than 12.
Source: Seeking Alpha
Related Articles:
- The Greatest Asset For Building Wealth
- 10 Stocks With A Strong Cash To Dividend Coverage
- 15 Dividend Stocks Trading Below Their Calculated Fair Value
- The Most Important Thing To Consider When Selecting A Dividend Stock
- 3 Powerful Concepts for Compounding Wealth with Dividend Stocks
Cheap High Dividend Yield Stocks
Posted by D4L | Friday, January 13, 2012 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
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...
-
The best dividend stocks have one thing in common: resiliency. They can continue increasing their dividends even in the harshest economic en...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
-
BDCs can be excellent investment options for those seeking high returns, particularly when acquired at favorable valuations and supported by...
-
I can't carry on anymore. The secret has become too much of a burden and it must be shared with the masses. This will shock some and enr...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.