Dividends4Life: Dividend Stocks With Low Payout Ratios and High Yields

These dividend stocks on my list have higher-than-normal dividend yields. That makes them bargains. But they also have low price-to-earnings ratios. These dividend stocks should be great long-term value investments. So I found five dividend-paying stocks with the following traits. Their payouts represent less than 60% of earnings in dividends. The dividend yields are also higher than 3% annually. In addition, the stocks have price-to-earnings ratios below the market average (less than 18x). Check out these worthwhile — and cheap — dividend stocks.

Kellogg (NYSE:K) stock is also very undervalued. And the company is turning into more than just a cereal brand. It has a higher-than-average dividend yield of 4%, but the dividend does not take up a large portion of earnings. Plains All American Pipeline (NYSE:PAA) is yet another undervalued stock on this list. It has a very high 7.6% dividend yield but only pays out 57% of its earnings. Moreover, its P/E ratio is below 8 times. J. M. Smucker (NYSE:SJM) stock has a 3.3% dividend yield and a low 43% payout ratio. That is good because it allows the company to pay down its debt.Archer-Daniels-Midland (NYSE:ADM) stock is another undervalued food stock on my list. It is one of the world’s leading food and beverage ingredient producers.

Source: InvestorPlace

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