While there aren't a whole lot of companies out there selling at decent discounted prices these days -- the market is hitting all-time highs, after all -- there's still a decent handful of stocks that investors should consider if they want to buy a company on the cheap.
After all, picks trading that low often have gone through hard times. And while you can sometimes catch a falling knife and make a bundle on a swing trade, cheap dividend stocks are inherently long-term investments.
I mean, what’s the point of buying an income investment only to trade out of it before the ex-dividend date?
As the old saying goes, price is what you pay but value is what you get. So instead, investors should look at valuation metrics and payout ratios to determine which are the best cheap dividend stocks to buy now.
So we run a stock screener to find stocks currently trading for a 'cheap' price. There came a lot results but we like to share the best in our view with you.
These are the results...
Medical Properties -- Yield: 7.50%
Medical Properties (NYSE:MPW) employs 54 people, generates revenue of $441.88 million and has a net income of $139.93 million. The current market capitalization stands at $3.92 billion.Medical Properties’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $396.41 million. The EBITDA margin is 89.71% (the operating margin is 59.57% and the net profit margin 31.67%).
Financials: The total debt represents 59.23% of Medical Properties assets and the total debt in relation to the equity amounts to 158.05%. Due to the financial situation, a return on equity of 7.95% was realized by Medical Properties.
Twelve trailing months earnings per share reached a value of $1.00. Last fiscal year, Medical Properties paid $0.88 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.27, the P/S ratio is 8.89 and the P/B ratio is finally 1.38. The dividend yield amounts to 7.50%.
Stock Charts:
| Long-Term Stock Price Chart of Medical Properties (MPW) |
| Long-Term Dividend Payment History of Medical Properties (MPW) |
| Long-Term Dividend Yield History of Medical Properties (MPW) |
Apple Hospitality -- Yield: 6.73%
Apple Hospitality (NYSE:APLE) employs 54 people, generates revenue of $898.31 million and has a net income of $117.29 million. The current market capitalization stands at $3.99 billion.Apple Hospitality’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $308.48 million. The EBITDA margin is 34.34% (the operating margin is 15.14% and the net profit margin 13.06%).
Financials: The total debt represents 26.81% of Apple Hospitality assets and the total debt in relation to the equity amounts to 37.71%. Due to the financial situation, a return on equity of 4.14% was realized by Apple Hospitality.
Twelve trailing months earnings per share reached a value of $0.48. Last fiscal year, Apple Hospitality paid $1.39 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 37.06, the P/S ratio is 4.43 and the P/B ratio is finally 1.17. The dividend yield amounts to 6.73%.
Stock Charts:
| Long-Term Stock Price Chart of Apple Hospitality (APLE) |
| Long-Term Dividend Payment History of Apple Hospitality (APLE) |
| Long-Term Dividend Yield History of Apple Hospitality (APLE) |
Verizon Communication -- Yield: 4.78%
Verizon Communication (NYSE:VZ) employs 162,000 people, generates revenue of $131,620.00 million and has a net income of $18,375.00 million. The current market capitalization stands at $198.67 billion.Verizon Communication’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $46,567.00 million. The EBITDA margin is 35.38% (the operating margin is 25.12% and the net profit margin 13.96%).
Financials: The total debt represents 44.94% of Verizon Communication assets and the total debt in relation to the equity amounts to 667.94%. Due to the financial situation, a return on equity of 124.48% was realized by Verizon Communication.
Twelve trailing months earnings per share reached a value of $3.43. Last fiscal year, Verizon Communication paid $2.23 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.13, the P/S ratio is 1.50 and the P/B ratio is finally 11.98. The dividend yield amounts to 4.78%.
Stock Charts:
| Long-Term Stock Price Chart of Verizon Communication (VZ) |
| Long-Term Dividend Payment History of Verizon Communication (VZ) |
| Long-Term Dividend Yield History of Verizon Communication (VZ) |
Bank of Montreal -- Yield: 3.90%
Bank of Montreal (NYSE:BMO) employs 47,000 people, generates revenue of $9,961.24 million and has a net income of $3,283.15 million. The current market capitalization stands at $43.42 billion.Bank of Montreal’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5,874.64 million. The EBITDA margin is 43.46% (the operating margin is 29.45% and the net profit margin 24.29%).
Financials: The total debt represents 6.90% of Bank of Montreal assets and the total debt in relation to the equity amounts to 112.39%. Due to the financial situation, a return on equity of 12.61% was realized by Bank of Montreal.
Twelve trailing months earnings per share reached a value of $5.01. Last fiscal year, Bank of Montreal paid $2.41 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.22, the P/S ratio is 3.15 and the P/B ratio is finally 1.57. The dividend yield amounts to 3.90%.
Stock Charts:
| Long-Term Stock Price Chart of Bank of Montreal (BMO) |
| Long-Term Dividend Payment History of Bank of Montreal (BMO) |
| Long-Term Dividend Yield History of Bank of Montreal (BMO) |
Novartis -- Yield: 3.88%
Novartis (NYSE:NVS) employs 118,000 people, generates revenue of $50,359.00 million and has a net income of $7,028.00 million. The current market capitalization stands at $174.03 billion.Novartis’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $15,228.00 million. The EBITDA margin is 30.24% (the operating margin is 17.56% and the net profit margin 13.96%).
Financials: The total debt represents 16.65% of Novartis assets and the total debt in relation to the equity amounts to 28.43%. Due to the financial situation, a return on equity of 9.49% was realized by Novartis.
Twelve trailing months earnings per share reached a value of $2.83. Last fiscal year, Novartis paid $2.70 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 24.24, the P/S ratio is 3.65 and the P/B ratio is finally 2.16. The dividend yield amounts to 3.88%.
Stock Charts:
| Long-Term Stock Price Chart of Novartis (NVS) |
| Long-Term Dividend Payment History of Novartis (NVS) |
| Long-Term Dividend Yield History of Novartis (NVS) |
Pfizer -- Yield: 3.80%
Pfizer (NYSE:PFE) employs 97,900 people, generates revenue of $48,851.00 million and has a net income of $6,974.00 million. The current market capitalization stands at $189.35 billion.Pfizer’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $18,790.00 million. The EBITDA margin is 38.46% (the operating margin is 21.14% and the net profit margin 14.28%).
Financials: The total debt represents 23.24% of Pfizer assets and the total debt in relation to the equity amounts to 60.10%. Due to the financial situation, a return on equity of 10.22% was realized by Pfizer.
Twelve trailing months earnings per share reached a value of $1.00. Last fiscal year, Pfizer paid $1.12 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 31.40, the P/S ratio is 3.92 and the P/B ratio is finally 3.01. The dividend yield amounts to 3.80%.
Stock Charts:
| Long-Term Stock Price Chart of Pfizer (PFE) |
| Long-Term Dividend Payment History of Pfizer (PFE) |
| Long-Term Dividend Yield History of Pfizer (PFE) |
Invesco -- Yield: 3.52%
Invesco (NYSE:IVZ) employs 6,812 people, generates revenue of $5,122.90 million and has a net income of $964.10 million. The current market capitalization stands at $13.09 billion.Invesco’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,452.00 million. The EBITDA margin is 28.34% (the operating margin is 26.21% and the net profit margin 18.82%).
Financials: The total debt represents 29.95% of Invesco assets and the total debt in relation to the equity amounts to 95.24%. Due to the financial situation, a return on equity of 11.94% was realized by Invesco.
Twelve trailing months earnings per share reached a value of $1.99. Last fiscal year, Invesco paid $1.06 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.94, the P/S ratio is 2.53 and the P/B ratio is finally 1.65. The dividend yield amounts to 3.52%.
Stock Charts:
| Long-Term Stock Price Chart of Invesco (IVZ) |
| Long-Term Dividend Payment History of Invesco (IVZ) |
| Long-Term Dividend Yield History of Invesco (IVZ) |
Novo Nordisk -- Yield: 2.81%
Novo Nordisk (NYSE:NVO) employs 42,605 people, generates revenue of $15,420.57 million and has a net income of $4,980.78 million. The current market capitalization stands at $64.71 billion.Novo Nordisk’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7,147.84 million. The EBITDA margin is 46.35% (the operating margin is 45.81% and the net profit margin 32.30%).
Financials: The total debt represents 1.17% of Novo Nordisk assets and the total debt in relation to the equity amounts to 2.28%. Due to the financial situation, a return on equity of 79.90% was realized by Novo Nordisk.
Twelve trailing months earnings per share reached a value of $2.11. Last fiscal year, Novo Nordisk paid $0.91 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.29, the P/S ratio is 4.22 and the P/B ratio is finally 12.48. The dividend yield amounts to 2.81%.
Stock Charts:
| Long-Term Stock Price Chart of Novo Nordisk (NVO) |
| Long-Term Dividend Payment History of Novo Nordisk (NVO) |
| Long-Term Dividend Yield History of Novo Nordisk (NVO) |
American Express -- Yield: 1.79%
American Express (NYSE:AXP) employs 54,800 people, generates revenue of $33,293.00 million and has a net income of $5,163.00 million. The current market capitalization stands at $66.21 billion.American Express’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9,717.00 million. The EBITDA margin is 29.19% (the operating margin is 23.84% and the net profit margin 15.51%).
Financials: The total debt represents 67.18% of American Express assets and the total debt in relation to the equity amounts to 523.77%. Due to the financial situation, a return on equity of 24.49% was realized by American Express.
Twelve trailing months earnings per share reached a value of $5.65. Last fiscal year, American Express paid $1.13 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.71, the P/S ratio is 1.97 and the P/B ratio is finally 3.35. The dividend yield amounts to 1.79%.
Stock Charts:
| Long-Term Stock Price Chart of American Express (AXP) |
| Long-Term Dividend Payment History of American Express (AXP) |
| Long-Term Dividend Yield History of American Express (AXP) |
Walt Disney -- Yield: 1.45%
Walt Disney (NYSE:DIS) employs 185,000 people, generates revenue of $55,632.00 million and has a net income of $9,790.00 million. The current market capitalization stands at $155.83 billion.Walt Disney’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $16,885.00 million. The EBITDA margin is 30.35% (the operating margin is 25.53% and the net profit margin 17.60%).
Financials: The total debt represents 21.92% of Walt Disney assets and the total debt in relation to the equity amounts to 46.62%. Due to the financial situation, a return on equity of 21.39% was realized by Walt Disney.
Twelve trailing months earnings per share reached a value of $5.72. Last fiscal year, Walt Disney paid $1.42 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.06, the P/S ratio is 2.82 and the P/B ratio is finally 3.61. The dividend yield amounts to 1.45%.
Stock Charts:
| Long-Term Stock Price Chart of Walt Disney (DIS) |
| Long-Term Dividend Payment History of Walt Disney (DIS) |
| Long-Term Dividend Yield History of Walt Disney (DIS) |