There are still a few cheap stocks out there that also provide dividends
Cheap dividend stocks have increased in demand ever since
the financial crisis. To save the economy and the markets, the Federal Reserve
repeatedly lowered interest rates. As a result, safer investments like bonds
and Treasuries ended up yielding next to nothing. And so, retirement investors
and income investors moved further out on the risk curve, buying up dividend
stocks in the hunt for yield.
Now the stock market is overvalued, and many dividend stocks
are too. Having a 4% dividend means nothing if the stock falls by 30%. Thus,
income investors should try to find dividends stocks that are already
relatively cheap and are also growing dividends.
One of the strategies of The Liberty Portfolio, my stock
advisory newsletter, is to seek out cheaper stocks in Benjamin Graham fashion.
It gives you less chance of losing your capital. If those stocks pay dividends,
so much the better.
Here are five possible cheap dividend stocks for your
portfolio:
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