It’s rare to find stocks with dividend yields that are in the neighborhood of their price-to-earnings (P/E) ratios. But the persistent concerns about global growth have created an unusually high number of these inexpensive yield opportunities in the energy and materials sectors. Notably, many of these value plays aren’t royalty trusts or REITs, and they aren’t troubled stocks or obscure names with sub-$5 stock prices. Instead, they’re some of the largest and most recognizable names in the global markets:
Vanguard Natural Resources (NYSE:VNR), China Petroleum & Chemical (NYSE:SNP), Total (NYSE:TOT), ENI (NYSE:E), Royal Dutch Shell (NYSE:RDS.A), BP (NYSE:BP), Vale (NYSE:VALE), Rio Tinto (NYSE:RIO) and Freeport McMoRan (NYSE:FCX). There’s no doubt, any of these energy and materials stocks could be hit hard in the short term — if Europe blows up, P/Es and yields aren’t going to matter. The solution to this conundrum — short-term risk, long-term potential — is to scale in. Build positions slowly, adding on weakness and selling calls on strength to boost the income stream.
Source: InvestorPlace
Related Articles:
- 2011 Dividend Increases Nearly Doubled, and 7 Dividend Stocks that Led the Way
- 6 Dividend Stocks For The New Year
- Bonds Look Morbid When Compared To These Dividend Stocks
- The 2012 Dividend Aristocrats
- Best Stocks for 2012
________________________________________________________________
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...
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
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...
-
A good dividend stock has more than a high yield. Dividends need to be supported by cash flow, and cash flow depends on the long-term streng...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
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...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.