I remember times when the popular S&P 500 index had more than 15 constituents of high-yields. Today we only have seven! Yes, the market is getting more and more expensive. The S&P 500 is up 22.85 percent this year and marked all-time highs. In times when P/Es of 20 or more are the new valuation standard, it’s more important to keep an eye on cheaply priced stocks.
That’s the main reason why I would like to produce a screen from the mainstream index S&P 500 by the cheapest and highest yielding stocks measured with a forward P/E of less than 15 and a dividend yield over 4 percent. Only 16 corporate stocks fulfilled these criteria of which five have a buy or better rating. Utilities are the dominating investment category. Here are my favorite stocks: Altria Group (MO), Lockheed Martin (LMT) and American Electric Power (AEP).
Source: Guru Focus
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I love reading your thoughts and suggestions regarding dividend investing. I am very comfortable but I am at a point where the market is getting so high. How do I decide to buy something new or more of something I already own. It's all in retirement accounts, for now. I'll have to start making some investments outside though as I've maxed my ira contribution for this year.