Dividends4Life: 3 Cheap Dividend Stocks to Buy Now

Dividend Growth Stocks News

3 Cheap Dividend Stocks to Buy Now

Posted by D4L | Sunday, October 11, 2015 | | 0 comments »

You can find plenty of stocks with low price-earnings ratios and high dividend yields—usually a winning combination. Look closely at the underlying companies, however, and you may find balance sheets buckling under weighty debt loads or deteriorating profits, making the stocks much less of a bargain than they appear on the surface.

More promising are dividend-paying stocks that have solid long-term prospects but appear to have hit some speed bumps. Buying these stocks involves taking a chance that their businesses will revive. In exchange for that risk, you can get stocks with low P/Es and above-average yields. If the companies’ turnaround plans show even modest signs of success, the stocks could take off. One stock in this camp is International Business Machines (symbol IBM, $148.14), a favorite of Warren Buffett. United Technologies (UTX, $93.31) also looks like a promising turnaround candidate. Clothing retailer Gap (GPS, $32.23) has plunged deep into the bargain bin, tumbling 26% this year.

Source: Kiplinger

Related Articles:
- 7 Stocks With A Strong Cash To Dividend Coverage
- Optimizing Your Asset Allocation
- Dividend Growth Stocks Are My Conviction
- All Investing Involves Risk
- 7 Dividend Stocks With Room To Increase Their Payout



Post a Comment

Note: Only a member of this blog may post a comment.