De-risk your portfolio with undervalued dividend payers that you can watch grow inside of your portfolio. With the market pulling back again, now is a great time to start adding shares while they’re cheap.
There are a number of stocks that have taken a beating of late, and that’s created some great buying opportunities. There are close to 350 stocks that pay a 2% plus dividend yield and are down 10% in 2016.
However, not all of these dividends are actually “cheap” from a valuation perspective, nor do all have the balance sheets or cash flows to support their dividends.
The key is to be prudent.
Attached you will see a list of the 20 cheapest dividend paying large cap stocks by forward price to earnings ratio. I've only listed those with a market cap over 10 billion with a debt to equity ratio below one. Those are two very essential restrictions to my screen.
As might see, there is a good mix of all sectors: Financials, Industrials, Services, Technology, Healthcare and Utilites.
These are the 20 cheapest dividend paying large caps by forward P/E ratio...
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| 20 Cheapest Large Cap Stocks With Fat Dividends And Low Debt Ratios (click to enlarge) |