With the market making new all-time highs, it’s getting harder every day to find quality bargain dividend stocks that also make decent-to-generous cash payouts — but they do exist. Consider this: The S&P 500 is up 23% in 2013, helped by near-record corporate earnings per share and, of course, multiple expansion. The trailing price-to-earnings ratio of the S&P has risen to 18.7, which is well above its long-term average. Meanwhile, the forward P/E of 14.8 matches the long-term average — not expensive, but not cheap. Other measures suggest stocks are even more overvalued.
Higher share prices also reduce the yield on dividends, which is not a good thing for income investors (with new money to spend) in this world of ultra-low interest rates. The dividend yield on the S&P is back below 2% after topping 2.1% a year ago. Yields in the Dow Jones Industrial Average have thinned even more, to 2.2% from 2.7% a year ago. And yet … it is possible to find quality names sporting competitive to crazy dividends that still look like they’re on sale. Here are three of the best dividend stocks you can buy for a song: International Paper (IP), Freeport-McMoRan Copper & Gold (FCX) and SeaDrill (SDRL).
Source: InvestorPlace
Related Articles:
- First Quarter 2013: Top And Bottom Performing Dividend Stocks
- A Disciplined Approach To Dividend Stocks
- 6 High-Yield REITs With Growing Dividends
- International Diversification May Be Closer than You Think
- 10 Dividend Stocks With A 10% Yield In 10 Years
Dividend Stocks You Can Buy for a Song
Posted by D4L | Tuesday, November 19, 2013 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
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...
-
When a company pays a dividend, it's a good thing for shareholders. When a company consistently pays a dividend every quarter, it's ...
-
If you've been holding back from investing in your future just because you don't have a lot of extra cash to spare, I've got gre...
-
If you are looking for high-yield dividend stocks that can beat the market, you might want to check out these three companies. They all have...
-
If you are here to build a portfolio that thrives in all seasons, consider dividend stocks. They can generate steady returns and provide sta...
-
My top financial goal is to eventually become financially independent. The foundation of my strategy is to make investments that produce an ...
-
One way to achieve financial freedom is to create passive income, or income that does not depend on your active involvement beyond a certain...
-
The company's remarkable consistency and low-risk business model make it a "first-choice investment opportunity," according to...
-
Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciations have contribut...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.