Investing is really no different from buying a car. Just like there are many different cars to choose from, there are many different investments as well. There are also a variety of metrics that could be used to find a cheap investment. To get a deal on a stock, it must be trading at an attractive valuation when compared to its peers or the overall index. Also consider that sometimes a stock is trading at a discount because the market may be missing some important information effecting the company. A great metric to determine whether a stock is a cheap dividend stock is the price-to-earnings (P/E) ratio. The ratio provides the multiple that is being paid based on the company’s earnings. When the ratio is lower, it is being purchased at a discount, which is ideal for long-term, patient investors.
A great source of info for income investors is the S&P 500 Dividend Aristocrats index. “Dividend Aristocrats” are companies that have a large market cap and a history of growing their dividends for at least 25 years. Just like buying a car at an incredible price, you should be proud to locate cheap dividend aristocrat stocks. Below, I have provided a chart of cheap dividend aristocrat stocks: Target Corporation (NYSE:TGT), T. Rowe Price Group Inc (NASDAQ:TROW), Franklin Resources, Inc. (NYSE:BEN), Wal-Mart Stores Inc (NYSE:WMT) and AbbVie Inc (NYSE:ABBV).
Source: Income Investor
Related Articles:
- How To Manage Your Dividend Portfolio In A Downturn
- 5 Tech Stocks With A History of Growing Their Dividends
- 8 Dividend Stocks For The Ultimate In Deferred Gratification
- The Most Important Thing To Consider When Selecting A Dividend Stock
- 5 Healthcare Stocks With Growing Dividends Yielding In Excess of 2%
_____________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
There are some dividend aristocrats which have not only maintained but increased their dividends for over half a century. Having survived ev...
-
Do you need more income? Join the crowd. It seems everyone is scouring the landscape these days for decent income investments to beef up the...
-
In bull markets, dividends become more or less irrelevant. When the Dow Jones Industrial Average traded above 14,000 in 2007, very few stoc...
-
While I've invested a decent portion of my portfolio into growth stocks, a significant part of my holdings consists of dividend-paying s...
-
Investors hear about dividend aristocrats all the time. It’s a fantastic thing if a company raises its dividend every year for 25 years runn...
-
Stocks can make for amazing investments, offering better long-term returns than bonds, precious metals, and most other commonly available in...
-
All too often when a cheap stock offers a high dividend yield, it's too good to be true. Perhaps the stock has plunged with good reason,...
-
Anxiety over the European debt crisis and distrust in the markets drove volatility in global stock markets to dizzying heights in 2011. The ...
-
To alert investors of stocks that have the highest risk of reducing their current dividend in the future, Simply Safe Dividends created a Di...
-
Showing resilience during a tough week was a group of stocks that has not been heard from much in the past two years. A group that has been ...
0 comments
Post a Comment
Post a Comment