Stocks that offer big dividend yields are often backed by businesses that are going through rough patches and experiencing significant downturns in their earnings or growth outlooks. Big payouts can be necessary to keep investors happy when share prices are stagnating or slipping, and while many companies won't recover from a slowdown phase, some beaten-down, high-yield stocks will actually bounce back thanks to re-energized growth engines.
History shows that comebacks aren't easy, but if a stock's at the right price, it's worth hitching a ride for regular income generation and taking advantage of comeback potential that's not reflected in a company's valuation. Within that mold, here's why I think that IBM (NYSE:IBM) and Hanesbrands (NYSE:HBI) are stocks that have gotten too cheap to ignore.
Source: Motley Fool
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