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, who owns shares through his holding company Berkshire Hathaway (BRK.B $131.47). Expectations for Big Blue are now low, to say the least. United Technologies (UTX, $93.31) also looks like a promising turnaround candidate. The company makes aircraft engines through its Pratt & Whitney division, along with Otis elevators, Carrier air conditioners and other products. Despite its strong lineup, the business has been in a funk. Clothing retailer Gap (GPS, $32.23) has plunged deep into the bargain bin, tumbling 26% this year. Sales have been sliding at its flagship Gap stores and Banana Republic chain. Analysts worry that Gap is also losing out to such "fast-fashion" retailers as H&M and Zara, which rapidly crank out high-end designs at rock-bottom prices.
Source: Jewish World Review
Related Articles:
- 6 High-Yielding Mega-Cap Stocks
- Dividend Investors Should Focus On Stocks, Not The Market
- The Secret Ingredient of Dividend Growth Stocks
- 9 Dividend Stocks With A 10%+ Dividend Growth Rate
- 3 Styles Of Successful Dividend Investing
Dividend Growth Stocks News
- Why Smith & Nephew (SNN) Deserves a Spot Among the UK’s Safest Dividend Stocks - Insider Monkey - 7/26/2025
- 10 Oversold Dividend Stocks To Buy According to Hedge Funds - Insider Monkey - 7/26/2025
- Is WTW a Quiet Contender Among the UK’s Most Reliable Dividend Stocks? - Insider Monkey - 7/26/2025
- 2 Magnificent S&P 500 Dividend Stocks Down 20% to Buy and Hold Forever - Mitrade - 7/25/2025
- Top 10 Safest Dividend Stocks in the UK - Insider Monkey - 7/26/2025
- Duke Energy (DUK) Dividend Stock Analysis - 7/25/2025
- Chevron Corporation (CVX) Dividend Stock Analysis - 7/18/2025
- Emerson Electric Co. (EMR) Dividend Stock Analysis - 7/11/2025
- Amgen, Inc. (AMGN) Dividend Stock Analysis - 6/27/2025
- W.W. Grainger, Inc. (GWW) Dividend Stock Analysis - 6/20/2025
3 Cheap Dividend Stocks to Buy Now
Posted by D4L | Sunday, November 15, 2015 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.