These stocks are very attractive undervalued dividend stocks with low P/E's, good earnings and low payout ratios
Each entry in this list of undervalued stocks has good
dividend growth prospects and appears to be undervalued. That’s an excellent
combination for an investor. After all, typically a company will not keep
raising its dividends unless the underlying earnings and cash flow are growing
as well. That bodes well for these undervalued dividend stocks.
On the other hand, high-growth companies typically do not
pay out dividends. So, in a way, this is the best of both worlds. These
companies have good growth, but aren’t so focused on it that they can’t afford
to return capital to their shareholders. And they are still growing their
earnings — otherwise, they wouldn’t keep raising their dividends.
For example, many companies that are expanding their
dividends generate enough free cash flow to also buy back stock and make
acquisitions. Both of these can lead to higher earnings per share and also
higher dividends per share.
Some of these stocks are fairly recession-resistant as well.
Let’s dive in and look at these undervalued dividend stocks:
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