20 Oversold And Cheap Dividend With Yields Over 3%

The only thing better than oversold stocks are oversold dividend stocks. The dividend, even if it’s a small one, acts as a hedge if you decide to purchase the stock and the trade moves against you.

I do a screen for oversold dividend stocks from time to time, not only because I’m hunting for value, but because oftentimes some names turn up that I’ve never heard of. There’s nothing I like more than a new stock with either a really boring name or one that piques my interest.

As an investor who finds value stocks to be less risky with higher chances of yielding market-beating returns, I’m always on the lookout for stocks that are oversold. Sometimes a lousy stock gets rightfully sold off and you should avoid it.

However, sometimes a stock gets taken down because investors are reacting emotionally. They sell first and ask questions later. That can create great opportunities for investors who are seeking a good stock at an undervalued price.

Other times, you have a stock that is subject to things like fluctuating commodity prices, but is likely to get back up once external factors stabilize.

Sometimes you might get lucky, and find that oversold stock that also pays a dividend. If you are correct in your assessment, you may get paid that dividend while you wait for the market to realize how wrong it was and send the stock back up.

Here are 20 interesting oversold dividend stocks worthy of consideration:

5 Value Dividend Stocks With Yields Over 5%

The search for dividends, however, is more involved than picking a Chance card on the Monopoly board.

Bigger isn't always better, and just because a stock has a high dividend yield -- annual dividend divided by share price -- that doesn't necessarily mean that it is a better investment than one with a lower yield.

For example, the dividend yield could increase if a stock price drops, which could be a red flag for financial struggles in the underlying business.

A company's payout ratio, which is the relationship between what it pays to shareholders and how much profit it generates, is another key metric. Too high a payout ratio could limit a company's ability to buy back shares, build the underlying operation or raise dividends.

A healthy dividend is one that will grow over time and provide a solid stream of income for the investor.

Here are five picks with dividend yields exceeding 5%. All the stocks on the below not only carry high yields but also have price appreciation potential, so investors could get a double benefit from being selective and thinking like a value stock picker when looking at these names.

These are the results....

20 Dividend Stocks With The Highest Buy Rating | Compilation Of The Best Services Stocks

Most recommended dividend stocks from the services sector originally published at "long-term-investments.blogspot.com". Today I like to go forward with my best stock recommendation list for January 2013 and I analyze the services sector. 

The services sector has 888 companies listed of which 348 pay dividends and 213 are recommended to buy now.

The total market capitalization of all stocks amounts to USD 56.93 trillion dollar. An average stock from the sector has a dividend yield of 1.72 percent and is valuated with a P/E of 20.10. The best yielding industries are Consumer Services and Electronic Stores which is followed by Computers Wholesale.

I made a screen of the 20 most recommended and higher capitalized stocks with positive dividend payments. Two high-yields are part of the results.