Interest rates are at historical lows all around the world, which is enticing investors to put money to work in the stock market if they want to generate income. Unfortunately, the yield on the S&P 500 is only about 2% right now, and its trailing price-to-earnings ratio of 25 suggests that the market is expensive. For that reason, some investors are searching for stocks that are both cheap and offer up a higher dividend yield than the market in general. Below is a list of three companies that fit that description, but that doesn't make them automatic buys.
You might be surprised to learn that Ford (NYSE:F) has morphed into a cheap income stock over the past few years. After all, the company was forced to abandon its divided in 2006 so it could hoard capital and survive the Great Recession. E-commerce giant Amazon has been wreaking havoc on the retail industry for the last two decades, and office suppliers like Staples (NASDAQ:SPLS) have been hit particularly hard. That's a big reason shares of this once-promising company have drastically underperformed the market over the past five years. The enormous growth in smartphone sales has greatly benefited telecom companies like AT&T (NYSE:T) over the past decade. On a total-return basis -- which accounts for dividend reinvestment -- shares of AT&T have outperformed the market during that time frame.
Source: Motley Fool
Related Articles:
- How To Buy Dividend Stocks At The Bottom
- 10 Stocks That Have Paid Dividends Since The 1800s
- Are You Patient Enough To Be Wealthy? These 7 Dividend Stocks Will Help You Wait
- Three Keys For Successful Dividend Growth Investing
- 5 Exceptional Dividend Growth Stocks With Quality Financials
These 3 Dividend Stocks Are Ridiculously Cheap
Posted by D4L | Monday, August 15, 2016 | 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.