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5 Unpopular, Underestimated Large Cap Dividend Stocks

Investment professionals teach that you should buy stocks, and sectors, when they are cheap and out of favor. Even with the market near all-time highs, there are still such sectors, and such stocks, around.

These are serious companies with solid earnings, many of which pay dividends. Cheap stocks are out of favor as investors chase growth, but tastes change. Don’t put all your eggs in one basket, the pros caution. Investing fashions will change.

Companies will rise and fall in the estimation of the market. Buy those strong companies and vital sectors that are weak now, instead of those that are strong, and in the long run everything will adjust.

Your returns will average out. This is the difference between investing and gambling with your money. An investor will spread their bets, buying what’s cheap and selling what’s dear.

A gambler will buy what’s hot, and then be shocked when it falls, as hot stocks inevitably do. Diversification and sector rotation are the short odds. Even in today’s market, there are stocks you can buy now, cheap, and guarantee yourself a return in terms of dividends.

When tastes do change you will be very glad to have these cheap stocks in your portfolio. Even if the stocks stay cheap, buying them now gives you dividends, income you can either live on or reinvest.

Attached you will find five top picks that might look cheap and deliver a solid return if the market evaluates the mispriced situation.

Here are the results...

General Motors Company -- Yield: 4.89%

General Motors Company (NYSE:GM) employs 215,000 people, generates revenue of $152,356.00 million and has a net income of $9,615.00 million. The current market capitalization stands at $49.11 billion.

General Motors Company’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $13,545.00 million. The EBITDA margin is 8.89% (the operating margin is 3.51% and the net profit margin 6.31%).

Financials: The total debt represents 32.47% of General Motors Company assets and the total debt in relation to the equity amounts to 158.29%. Due to the financial situation, a return on equity of 25.72% was realized by General Motors Company.

Twelve trailing months earnings per share reached a value of $7.82. Last fiscal year, General Motors Company paid $1.38 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 4.00, the P/S ratio is 0.32 and the P/B ratio is finally 1.17. The dividend yield amounts to 4.89%.

Stock Charts:

Long-Term Stock Price Chart of General Motors Company (GM)
Long-Term Stock Price Chart of General Motors Company (GM)
Long-Term Dividend Payment History of General Motors Company (GM)
Long-Term Dividend Payment History of General Motors Company (GM)
Long-Term Dividend Yield History of General Motors Company (GM)
Long-Term Dividend Yield History of General Motors Company (GM)


Target Corporation -- Yield: 3.31%

Target Corporation (NYSE:TGT) employs 341,000 people, generates revenue of $73,785.00 million and has a net income of $3,321.00 million. The current market capitalization stands at $41.67 billion.

Target Corporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7,124.00 million. The EBITDA margin is 9.66% (the operating margin is 7.49% and the net profit margin 4.50%).

Financials: The total debt represents 31.69% of Target Corporation assets and the total debt in relation to the equity amounts to 98.48%. Due to the financial situation, a return on equity of 24.64% was realized by Target Corporation.

Twelve trailing months earnings per share reached a value of $5.29. Last fiscal year, Target Corporation paid $2.20 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.81, the P/S ratio is 0.58 and the P/B ratio is finally 3.37. The dividend yield amounts to 3.31%.

Stock Charts:

Long-Term Stock Price Chart of Target Corporation (TGT)
Long-Term Stock Price Chart of Target Corporation (TGT)
Long-Term Dividend Payment History of Target Corporation (TGT)
Long-Term Dividend Payment History of Target Corporation (TGT)
Long-Term Dividend Yield History of Target Corporation (TGT)
Long-Term Dividend Yield History of Target Corporation (TGT)


JPMorgan Chase -- Yield: 2.91%

JPMorgan Chase (NYSE:JPM) employs 237,420 people, generates revenue of $50,973.00 million and has a net income of $24,442.00 million. The current market capitalization stands at $234.97 billion.

JPMorgan Chase’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $39,983.00 million. The EBITDA margin is 42.74% (the operating margin is 32.82% and the net profit margin 26.13%).

Financials: The total debt represents 20.33% of JPMorgan Chase assets and the total debt in relation to the equity amounts to 193.07%. Due to the financial situation, a return on equity of 10.35% was realized by JPMorgan Chase.

Twelve trailing months earnings per share reached a value of $5.90. Last fiscal year, JPMorgan Chase paid $1.72 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.06, the P/S ratio is 2.54 and the P/B ratio is finally 1.09. The dividend yield amounts to 2.91%.

Stock Charts:

Long-Term Stock Price Chart of JPMorgan Chase (JPM)
Long-Term Stock Price Chart of JPMorgan Chase (JPM)
Long-Term Dividend Payment History of JPMorgan Chase (JPM)
Long-Term Dividend Payment History of JPMorgan Chase (JPM)
Long-Term Dividend Yield History of JPMorgan Chase (JPM)
Long-Term Dividend Yield History of JPMorgan Chase (JPM)


Delta Air Lines -- Yield: 2.18%

Delta Air Lines (NYSE:DAL) employs 85,000 people, generates revenue of $40,704.00 million and has a net income of $4,526.00 million. The current market capitalization stands at $27.11 billion.

Delta Air Lines’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $10,973.00 million. The EBITDA margin is 26.96% (the operating margin is 19.17% and the net profit margin 11.12%).

Financials: The total debt represents 15.68% of Delta Air Lines assets and the total debt in relation to the equity amounts to 76.76%. Due to the financial situation, a return on equity of 46.04% was realized by Delta Air Lines.

Twelve trailing months earnings per share reached a value of $6.14. Last fiscal year, Delta Air Lines paid $0.45 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 5.94, the P/S ratio is 0.68 and the P/B ratio is finally 2.67. The dividend yield amounts to 2.18%.

Stock Charts:

Long-Term Stock Price Chart of Delta Air Lines (DAL)
Long-Term Stock Price Chart of Delta Air Lines (DAL)
Long-Term Dividend Payment History of Delta Air Lines (DAL)
Long-Term Dividend Payment History of Delta Air Lines (DAL)
Long-Term Dividend Yield History of Delta Air Lines (DAL)
Long-Term Dividend Yield History of Delta Air Lines (DAL)


Apple -- Yield: 2.10%

Apple (NASDAQ:AAPL) employs 110,000 people, generates revenue of $233,715.00 million and has a net income of $53,394.00 million. The current market capitalization stands at $584.31 billion.

Apple’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $81,730.00 million. The EBITDA margin is 34.97% (the operating margin is 30.48% and the net profit margin 22.85%).

Financials: The total debt represents 22.19% of Apple assets and the total debt in relation to the equity amounts to 54.01%. Due to the financial situation, a return on equity of 46.25% was realized by Apple.

Twelve trailing months earnings per share reached a value of $8.56. Last fiscal year, Apple paid $1.98 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.61, the P/S ratio is 2.51 and the P/B ratio is finally 5.09. The dividend yield amounts to 2.10%.

Stock Charts:

Long-Term Stock Price Chart of Apple (AAPL)
Long-Term Stock Price Chart of Apple (AAPL)
Long-Term Dividend Payment History of Apple (AAPL)
Long-Term Dividend Payment History of Apple (AAPL)
Long-Term Dividend Yield History of Apple (AAPL)
Long-Term Dividend Yield History of Apple (AAPL)


1 comment:

  1. In case of Apple I would emphasize a lot of cash on balance sheet. P/E cash adjusted is significantly lower.

    ReplyDelete

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