Dividends4Life: 5 High Yield Dividend Stocks Selling Below Their Tangible Book Value

Selling below tangible book value means that the stock is below shareholders’ equity after deducting intangible assets. Typically these assets are things like the value of patents and written up technology assets. It also includes things like goodwill (overpayments of fair value from prior acquisitions), as well as deferred expenses or charges. This means that the value left is only tangible assets like real estate, cash, securities, loans, etc. Values can be put on these kinds of assets more easily than intangibles. In addition, all liabilities are deducted to determine the net tangible book value.

Therefore, if the high-yield dividend stocks are selling well below these levels, you know you are getting a bargain. This is the original theory that Benjamin Graham taught in his books and popularized with The Intelligent Investor. That is the book that Warren Buffett used to start his career as an investor. The five high-yield dividend stocks selling below their TBVPS are: Prudential Financial Group (NYSE:PRU), CIT Group (NYSE:CIT), Hancock Whitney Corp. (NASDAQ:HWC), DCP Midstream (NYSE:DCP) and Associated Banc-Corp (NYSE:ASB).

Source: InvestorPlace

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