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8 Best Cheap Dividend Income Stocks to Buy for 2016

With the end of the year upon us and a new calendar year approaching, it’s time to evaluate and adjust your portfolios of the dead weight and plant the seeds that will flourish in the coming year.

And what better foot to start off the new year with than a couple of undervalued names that have lots of room to make forward progress before hitting any major valuation headwind?

With that as the backdrop, here’s a closer look at some unusually cheap stocks to buy in the foreseeable future. Don’t let the word “cheap” throw you for a loop, these are underloved stocks that will serve as a way to squeeze a little extra juice out of the market in 2016.


Here are the results...

AT&T -- Yield: 5.71%

AT&T (NYSE:T) employs 281,240 people, generates revenue of $132,447.00 million and has a net income of $6,518.00 million. The current market capitalization stands at $206.71 billion.

AT&T’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $32,139.00 million. The EBITDA margin is 24.27% (the operating margin is 8.87% and the net profit margin 4.92%).

Financials: The total debt represents 27.61% of AT&T assets and the total debt in relation to the equity amounts to 91.47%. Due to the financial situation, a return on equity of 6.89% was realized by AT&T.

Twelve trailing months earnings per share reached a value of $0.86. Last fiscal year, AT&T paid $1.84 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 39.26, the P/S ratio is 1.56 and the P/B ratio is finally 1.94. The dividend yield amounts to 5.71%.

Stock Charts:

Long-Term Stock Price Chart of AT&T (T)
Long-Term Stock Price Chart of AT&T (T)
Long-Term Dividend Payment History of AT&T (T)
Long-Term Dividend Payment History of AT&T (T)
Long-Term Dividend Yield History of AT&T (T)
Long-Term Dividend Yield History of AT&T (T)


GameStop -- Yield: 5.01%

GameStop (NYSE:GME) employs 18,000 people, generates revenue of $9,296.00 million and has a net income of $393.10 million. The current market capitalization stands at $3.01 billion.

GameStop’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $774.50 million. The EBITDA margin is 8.33% (the operating margin is 6.65% and the net profit margin 4.23%).

Financials: The total debt represents 8.38% of GameStop assets and the total debt in relation to the equity amounts to 17.20%. Due to the financial situation, a return on equity of 18.20% was realized by GameStop.

Twelve trailing months earnings per share reached a value of $3.67. Last fiscal year, GameStop paid $1.32 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 7.83, the P/S ratio is 0.32 and the P/B ratio is finally 1.50. The dividend yield amounts to 5.01%.

Stock Charts:

Long-Term Stock Price Chart of GameStop (GME)
Long-Term Stock Price Chart of GameStop (GME)
Long-Term Dividend Payment History of GameStop (GME)
Long-Term Dividend Payment History of GameStop (GME)
Long-Term Dividend Yield History of GameStop (GME)
Long-Term Dividend Yield History of GameStop (GME)


Cummins -- Yield: 4.58%

Cummins (NYSE:CMI) employs 54,600 people, generates revenue of $19,221.00 million and has a net income of $1,736.00 million. The current market capitalization stands at $15.14 billion.

Cummins’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,393.00 million. The EBITDA margin is 12.45% (the operating margin is 12.30% and the net profit margin 9.03%).

Financials: The total debt represents 10.76% of Cummins assets and the total debt in relation to the equity amounts to 21.91%. Due to the financial situation, a return on equity of 21.64% was realized by Cummins.

Twelve trailing months earnings per share reached a value of $9.34. Last fiscal year, Cummins paid $2.81 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.12, the P/S ratio is 0.79 and the P/B ratio is finally 2.00. The dividend yield amounts to 4.58%.

Stock Charts:

Long-Term Stock Price Chart of Cummins (CMI)
Long-Term Stock Price Chart of Cummins (CMI)
Long-Term Dividend Payment History of Cummins (CMI)
Long-Term Dividend Payment History of Cummins (CMI)
Long-Term Dividend Yield History of Cummins (CMI)
Long-Term Dividend Yield History of Cummins (CMI)


HP -- Yield: 4.31%

HP (NYSE:HPQ) employs 287,000 people, generates revenue of $103,355.00 million and has a net income of $4,554.00 million. The current market capitalization stands at $20.62 billion.

HP’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $12,172.00 million. The EBITDA margin is 11.78% (the operating margin is 5.29% and the net profit margin 4.41%).

Financials: The total debt represents 23.08% of HP assets and the total debt in relation to the equity amounts to 88.83%. Due to the financial situation, a return on equity of 16.71% was realized by HP.

Twelve trailing months earnings per share reached a value of $2.48. Last fiscal year, HP paid $0.68 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 4.63, the P/S ratio is 0.20 and the P/B ratio is finally 0.75. The dividend yield amounts to 4.31%.

Stock Charts:

Long-Term Stock Price Chart of HP (HPQ)
Long-Term Stock Price Chart of HP (HPQ)
Long-Term Dividend Payment History of HP (HPQ)
Long-Term Dividend Payment History of HP (HPQ)
Long-Term Dividend Yield History of HP (HPQ)
Long-Term Dividend Yield History of HP (HPQ)


Emerson Electric -- Yield: 4.26%

Emerson Electric (NYSE:EMR) employs 110,800 people, generates revenue of $22,304.00 million and has a net income of $2,733.00 million. The current market capitalization stands at $29.04 billion.

Emerson Electric’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,171.00 million. The EBITDA margin is 18.70% (the operating margin is 14.60% and the net profit margin 12.25%).

Financials: The total debt represents 30.98% of Emerson Electric assets and the total debt in relation to the equity amounts to 84.67%. Due to the financial situation, a return on equity of 29.78% was realized by Emerson Electric.

Twelve trailing months earnings per share reached a value of $4.01. Last fiscal year, Emerson Electric paid $1.88 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.13, the P/S ratio is 1.30 and the P/B ratio is finally 3.61. The dividend yield amounts to 4.26%.

Stock Charts:

Long-Term Stock Price Chart of Emerson Electric (EMR)
Long-Term Stock Price Chart of Emerson Electric (EMR)
Long-Term Dividend Payment History of Emerson Electric (EMR)
Long-Term Dividend Payment History of Emerson Electric (EMR)
Long-Term Dividend Yield History of Emerson Electric (EMR)
Long-Term Dividend Yield History of Emerson Electric (EMR)


Western Digital -- Yield: 3.40%

Western Digital (NASDAQ:WDC) employs 76,449 people, generates revenue of $14,572.00 million and has a net income of $1,465.00 million. The current market capitalization stands at $13.64 billion.

Western Digital’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,916.00 million. The EBITDA margin is 20.01% (the operating margin is 11.06% and the net profit margin 10.05%).

Financials: The total debt represents 16.91% of Western Digital assets and the total debt in relation to the equity amounts to 27.84%. Due to the financial situation, a return on equity of 16.22% was realized by Western Digital.

Twelve trailing months earnings per share reached a value of $5.62. Last fiscal year, Western Digital paid $1.80 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.48, the P/S ratio is 0.94 and the P/B ratio is finally 1.47. The dividend yield amounts to 3.40%.

Stock Charts:

Long-Term Stock Price Chart of Western Digital (WDC)
Long-Term Stock Price Chart of Western Digital (WDC)
Long-Term Dividend Payment History of Western Digital (WDC)
Long-Term Dividend Payment History of Western Digital (WDC)
Long-Term Dividend Yield History of Western Digital (WDC)
Long-Term Dividend Yield History of Western Digital (WDC)


Wal-Mart Stores -- Yield: 3.33%

Wal-Mart Stores (NYSE:WMT) employs 2,200,000 people, generates revenue of $485,651.00 million and has a net income of $16,814.00 million. The current market capitalization stands at $188.43 billion.

Wal-Mart Stores’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $36,320.00 million. The EBITDA margin is 7.48% (the operating margin is 5.59% and the net profit margin 3.46%).

Financials: The total debt represents 24.65% of Wal-Mart Stores assets and the total debt in relation to the equity amounts to 61.63%. Due to the financial situation, a return on equity of 20.40% was realized by Wal-Mart Stores.

Twelve trailing months earnings per share reached a value of $4.66. Last fiscal year, Wal-Mart Stores paid $1.92 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.62, the P/S ratio is 0.39 and the P/B ratio is finally 2.33. The dividend yield amounts to 3.33%.

Stock Charts:

Long-Term Stock Price Chart of Wal-Mart Stores (WMT)
Long-Term Stock Price Chart of Wal-Mart Stores (WMT)
Long-Term Dividend Payment History of Wal-Mart Stores (WMT)
Long-Term Dividend Payment History of Wal-Mart Stores (WMT)
Long-Term Dividend Yield History of Wal-Mart Stores (WMT)
Long-Term Dividend Yield History of Wal-Mart Stores (WMT)


Gilead Sciences -- Yield: 1.69%

Gilead Sciences (NASDAQ:GILD) employs 7,000 people, generates revenue of $24,890.00 million and has a net income of $12,059.00 million. The current market capitalization stands at $146.42 billion.

Gilead Sciences’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $16,315.00 million. The EBITDA margin is 65.55% (the operating margin is 61.33% and the net profit margin 48.45%).

Financials: The total debt represents 35.78% of Gilead Sciences assets and the total debt in relation to the equity amounts to 80.41%. Due to the financial situation, a return on equity of 90.32% was realized by Gilead Sciences.

Twelve trailing months earnings per share reached a value of $10.92. Last fiscal year, Gilead Sciences paid $0.00 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.31, the P/S ratio is 5.88 and the P/B ratio is finally 9.87. The dividend yield amounts to 1.69%.

Stock Charts:

Long-Term Stock Price Chart of Gilead Sciences (GILD)
Long-Term Stock Price Chart of Gilead Sciences (GILD)
Long-Term Dividend Payment History of Gilead Sciences (GILD)
Long-Term Dividend Payment History of Gilead Sciences (GILD)
Long-Term Dividend Yield History of Gilead Sciences (GILD)
Long-Term Dividend Yield History of Gilead Sciences (GILD)


1 comment:

  1. in addition to being potential value and DGI plays that is a pretty diversified list

    ReplyDelete

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