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6 Cheapest Stocks With Dividend Yields Over 2%

I always scout for stocks with cheap price ratios. Benjamin Graham was a great teacher about identifying fundamentally cheap stocks and one of his most popular students were billionaire Warren Buffett itself.

I love to buy stocks that are not far away from its fundamentally reasonable price. Three good indicators are Price-to-Book, Price-to-Sales and Price-to-Earnings.

Growth and a better than anticipated business environment are the main driver for wealth which let the stock price skyrocket.

Integrate both in your trading strategy and you will get a better investment return.

Yesterday, I wrote about stocks that have tenfold their sales over the past decade. It is very impressive so see how strong can companies grow but if you look at Facebook, you pay a high price for that growth.

I'm not sure if your investment in twitter and facebook will pay-off as long-term investor. You must be carefully look at the P-Ratios.

I've created a small sheet of cheap dividend stocks with a dividend yield hitting the 2% yield mark. These are my criteria in detail:

- Dividend Yield over 2%
- P/B under 2
- P/S below 2
- Forward P/E under 15
- Market Cap over 2 billion
- Dividend Payout ratio under 60%

Eighteen stocks fulfilled my criteria of which one yields over five percent. Below are my six favorites. Which do you like?





Old Republic International (NYSE:ORI) has a market capitalization of $3.86 billion. The company employs 7,900 people, generates revenue of $5,442.70 million and has a net income of $447.90 million. Old Republic International’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $718.30 million. The EBITDA margin is 13.20 percent (the operating margin is 12.76 percent and the net profit margin 8.23 percent).

Financial Analysis: The total debt represents 3.44 percent of Old Republic International’s assets and the total debt in relation to the equity amounts to 15.08 percent. Due to the financial situation, a return on equity of 12.15 percent was realized by Old Republic International. Twelve trailing months earnings per share reached a value of $1.60. Last fiscal year, Old Republic International paid $0.72 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.29, the P/S ratio is 0.71 and the P/B ratio is finally 1.02. The dividend yield amounts to 4.94 percent and the beta ratio has a value of 0.91.


Long-Term Stock Price Chart Of Old Republic International (ORI)
Long-Term Dividend Payment History of Old Republic International (ORI)
Long-Term Dividend Yield History of Old Republic International (ORI)

If you would like to receive more dividend stock ideas, you should subscribe to my free e-mail list. Alternatively, you can follow me on Facebook or Twitter.

CNOOC (NYSE:CEO) has a market capitalization of $82.31 billion. The company employs 17,553 people, generates revenue of $46,599.02 million and has a net income of $9,204.00 million. CNOOC’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $22,104.04 million. The EBITDA margin is 47.43 percent (the operating margin is 27.46 percent and the net profit margin 19.75 percent).

Financial Analysis: The total debt represents 21.22 percent of CNOOC’s assets and the total debt in relation to the equity amounts to 38.60 percent. Due to the financial situation, a return on equity of 17.34 percent was realized by CNOOC. Twelve trailing months earnings per share reached a value of $20.28. Last fiscal year, CNOOC paid $9.29 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 8.94, the P/S ratio is 1.74 and the P/B ratio is finally 1.47. The dividend yield amounts to 4.01 percent and the beta ratio has a value of 1.20.


Long-Term Stock Price Chart Of CNOOC (CEO)
Long-Term Dividend Payment History of CNOOC (CEO)
Long-Term Dividend Yield History of CNOOC (CEO)


If you would like to receive more dividend stock ideas, you should subscribe to my free e-mail list. Alternatively, you can follow me on Facebook or Twitter.

Agrium (NYSE:AGU) has a market capitalization of $13.19 billion. The company employs 15,800 people, generates revenue of $15,727.00 million and has a net income of $1,080.00 million. Agrium’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,948.00 million. The EBITDA margin is 12.39 percent (the operating margin is 10.36 percent and the net profit margin 6.87 percent).

Financial Analysis: The total debt represents 24.33 percent of Agrium’s assets and the total debt in relation to the equity amounts to 57.23 percent. Due to the financial situation, a return on equity of 15.74 percent was realized by Agrium. Twelve trailing months earnings per share reached a value of $5.69. Last fiscal year, Agrium paid $2.50 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.23, the P/S ratio is 0.84 and the P/B ratio is finally 1.95. The dividend yield amounts to 3.27 percent and the beta ratio has a value of 1.73.


Long-Term Stock Price Chart Of Agrium (AGU)
Long-Term Dividend Payment History of Agrium (AGU)
Long-Term Dividend Yield History of Agrium (AGU)

If you would like to receive more dividend stock ideas, you should subscribe to my free e-mail list. Alternatively, you can follow me on Facebook or Twitter.

Guangshen Railway (NYSE:GSH) has a market capitalization of $3.26 billion. The company employs 36,886 people, generates revenue of $2,575.75 million and has a net income of $207.21 million. Guangshen Railway’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $492.69 million. The EBITDA margin is 19.13 percent (the operating margin is 11.95 percent and the net profit margin 8.04 percent).

Financial Analysis: The total debt represents 10.51 percent of Guangshen Railway’s assets and the total debt in relation to the equity amounts to 13.11 percent. Due to the financial situation, a return on equity of 4.84 percent was realized by Guangshen Railway. Twelve trailing months earnings per share reached a value of $1.10. Last fiscal year, Guangshen Railway paid $0.65 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.01, the P/S ratio is 1.27 and the P/B ratio is finally 0.65. The dividend yield amounts to 3.24 percent and the beta ratio has a value of 0.93.


Long-Term Stock Price Chart Of Guangshen Railway (GSH)
Long-Term Dividend Payment History of Guangshen Railway (GSH)
Long-Term Dividend Yield History of Guangshen Railway (GSH)

If you would like to receive more dividend stock ideas, you should subscribe to my free e-mail list. Alternatively, you can follow me on Facebook or Twitter.

ACE Limited (NYSE:ACE) has a market capitalization of $35.21 billion. The company employs 20,000 people, generates revenue of $19,261.00 million and has a net income of $3,758.00 million. ACE Limited’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7,183.00 million. The EBITDA margin is 37.29 percent (the operating margin is 22.99 percent and the net profit margin 19.51 percent).

Financial Analysis: The total debt represents 6.37 percent of ACE Limited’s assets and the total debt in relation to the equity amounts to 20.87 percent. Due to the financial situation, a return on equity of 13.34 percent was realized by ACE Limited. Twelve trailing months earnings per share reached a value of $9.99. Last fiscal year, ACE Limited paid $2.00 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.58, the P/S ratio is 1.83 and the P/B ratio is finally 1.24. The dividend yield amounts to 2.48 percent and the beta ratio has a value of 0.80.

You also may like: These 7 Growth Stocks Have Potential To Make You Rich


Long-Term Stock Price Chart Of ACE Limited (ACE)
Long-Term Dividend Payment History of ACE Limited (ACE)
Long-Term Dividend Yield History of ACE Limited (ACE)

If you would like to receive more dividend stock ideas, you should subscribe to my free e-mail list. Alternatively, you can follow me on Facebook or Twitter.

Rock-Tenn Company (NYSE:RKT) has a market capitalization of $7.35 billion. The company employs 25,800 people, generates revenue of $9,545.40 million and has a net income of $732.50 million. Rock-Tenn Company’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,444.40 million. The EBITDA margin is 15.13 percent (the operating margin is 8.53 percent and the net profit margin 7.67 percent).

Financial Analysis: The total debt represents 26.50 percent of Rock-Tenn Company’s assets and the total debt in relation to the equity amounts to 65.97 percent. Due to the financial situation, a return on equity of 18.84 percent was realized by Rock-Tenn Company. Twelve trailing months earnings per share reached a value of $3.43. Last fiscal year, Rock-Tenn Company paid $0.52 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.97, the P/S ratio is 0.77 and the P/B ratio is finally 1.72. The dividend yield amounts to 1.36 percent and the beta ratio has a value of 1.44.

You also may like: 10 Stocks Giving Investors More Money


Long-Term Stock Price Chart Of Rock-Tenn Company (RKT)
Long-Term Dividend Payment History of Rock-Tenn Company (RKT)
Long-Term Dividend Yield History of Rock-Tenn Company (RKT)


You also may like: These 7 Dividend Cash Cows Produce Money Like Milk

5 Year Performance (Click to enlarge)

18 Cheap Dividend Stocks (Click to enlarge)


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*I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I receive no compensation to write about any specific stock, sector or theme.