20 Potentially Undervalued Dividend Stocks

One of the most common pitfalls for investors is their tendency to chase returns in the market; that is to say, many investors are prone to being lured by “hot” names on Wall Street that are making big gains, as opposed to focusing on the “out of favor,” high-quality companies that may be due for a rebound. But it's risky to follow market gurus or to go with the trend.

Maybe a better approach could be buying, fundamentally-sound dividend stocks that seem to be underpriced at the moment. Make no mistake, like many feats in the investing world, this one is also easier said than done. 

As such, below we’ve tried to discover a few undervalued stocks that might be interesting for income investors. We've used a tool with data from CapitalIQ, a Standard&Poors Company. 

These stocks pay at least 2% dividend and are available at a discount to their share price.

The following criteria have been used to create this view:

- Modest dividend of at least 2%

- Potentially undervalued Discount > 10%)

- An acceptable financial position.

- No 'warning' companies

The forward P/E from most of the results are close to 10 or below.

These are the results:

20 Potentially Undervalued Dividend Stocks
(click to enlarge)

5 High Yield Dividend Stocks With High Beta Ratios

While investing in stocks with high dividends may be a good scheme to reinforce your loss-aversion principle, playing the market to dodge volatility requires some extra cautious steps. Beta measures the extent to which a fund’s return may be affected or how much the price fluctuates owing to market conditions.

A high beta shows normally how the performance of a single stock differs from the overall market. The higher the ratio, the bigger the out- or underperformance develops.

It's great if you like to be different, a star or a looser on the market.

Today I like to show you those higher capitalized dividend stocks with beta ratios over 1.5 and dividend yields over 5%. In order to keep the over levered stocks off the list, I only observed stocks with a debt to equity ratio under 1.

14 stocks fulfilled my criteria of which eight have a low forward P/E.

Here are the results...

20 Of The Best Dividend Paying Asset Management Stocks

The best dividend paying stocks from the asset management industry originally published at "long-term-investments.blogspot.com". 

Today I like to discover the asset management industry by the best dividend paying stocks. From the industry are 62 companies listed of which 51 pay dividends. All together have a total market capitalization of USD 10 trillion. The average dividend yield amounts to 2.97 percent and the average industry P/E is 23.0. Asset managers are good dividend payers. It's the thirteenth best yielding industry from the financial sector.

Linked is a list of the best dividend paying asset managers with a market capitalization over USD 2 billion and yields above the one percent mark.

Twenty companies remained of which thirteen have a current buy or better rating. On the list are some popular names with dominating leading CEO’s behind. Asset Management is a great people business. Please keep this in mind when you choose stocks from the industry.

11 Higher Capitalized Dividend Stocks For Less Than $5

Large- And Midcapitalized Stocks Under USD 5 Dollar Researched By “long-term-investments.blogspot.com”. It is a very stupid asset strategy to buy stocks with a low stock price. Somehow, many people believe that a lower price should allow them to buy more shares and increase the leverage of their investment. In times of margin trading, options, obligations, derivatives and CFD’s, there should be a smarter way to increase your investment leverage.

In order to proof what kind of stocks are available for less than USD 5 Dollar which are not garbage, I made a screen of stocks with a stock price under USD 5 with a positive dividend yield and a market capitalization of more than USD 2 billion. Eleven companies remained of which three have a double-digit yield and additional three have high yields. Five are at least recommended to buy.

Ex-Dividend Date Reminder For March 08, 2012

Here is a current overview of best yielding stocks with a market capitalization of more than USD 300 million that have their ex-dividend date on the next trading day. If your broker settles your trade today, you will receive the next dividend. A full list of all stocks with ex-dividend date can be found here: Ex-Dividend Stocks March 08, 2012. In total, 38 stocks and preferred shares go ex-dividend of which 15 yielding above 3 percent. The average yield amounts to 3.17 percent.