I look for dividend growth to confirm management’s commitment to the cash payout. This tells me that the high dividend yield isn’t just a function of a falling stock price but of an increasing dividend as well. Finally, investing decisions have to be made with an eye to the future. Fundamentals on trailing financials can confirm valuation and management’s ability but equity investing is all about future cash flows. I want to see that the outlook will support the dividend with additional price appreciation. Finding quality dividend names in value territory is getting difficult and you need to be extremely critical of any stock trading for a steep discount to the rest of its industry. These companies passed my test for cheap dividend stocks based on the criteria above...
Intel Corporation (NASDAQ:INTC) trades for a discount of 37% against the average P/E multiple of 27.8 times for its industry. Debt of 0.3 times equity is well under the average multiple of 0.45 times for semiconductor peers. Surprisingly Cheap Stocks With High Dividends: Intel Corporation (INTC)Intel dominates the microprocessor market with roughly 80% of the market share. General Motors Company (NYSE:GM) trades for less than half the average P/E ratio of 11 times for auto manufacturers. Debt is slightly higher than the 1.14 times equity average in the industry but the company easily covers interest and has a strong BBB- credit rating from Standard & Poor’s.
Source: InvestorPlace
Related Articles:
- 9 Dividend Stocks For A Rainy Day
- 6 Dividend Growth Stocks With Strong Capital Appreciation
- 6 Higher Yielding Basic Materials Stocks With Growing Dividends
- 7 Dividend Growth Stocks That Could Make You Wealthy
- A Roadmap To Build Wealth With Dividend Stocks
2 Surprisingly Cheap Stocks With High Dividends
Posted by D4L | Saturday, May 27, 2017 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
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...
-
GameStop (NYSE:GME) lost about 40% of its market value over the past three years, as rising digital downloads and declining mall traffic thr...
-
In a capitalistic society, opportunities to generate (mostly) passive income are all around us. Dividend growth investing is one of the most...
-
Investors buy dividend stocks for a few reasons. For one, they provide income via dividends that act as a bonus on top of capital appreciati...
-
These elite income producers have rallied this year. Their brilliance at producing passive income seems to have caught the market's eye ...
-
If you are looking for reliable dividends, these three Dividend Kings should be right up your alley. Dividends are paid at the discretion of...
-
Buying dividend stocks can be tricky. Oftentimes, stocks that pay exorbitantly high dividends have underlying financial problems, and their ...
-
While optimism in the broader market remains robust – particularly for hyped-up sectors like technology – investors may still want to consid...
-
A strong dividend investing strategy may be to focus on high-quality names that score well on several dividend-related metrics. In other wor...
-
When many investors think about tech stocks, they often think first about high-growth names that come with outsized risk -- not mature, divi...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.