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
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- 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%
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