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)

15 High Yields With The Lowest Dividend Payout Ratios

High Yields with dividend payouts of less than 50 percent and room to boost future dividends originally published at long-term-investments.blogspot.com. If you have only small amounts of money available for investing, you need a higher yield. I do know this problem but I always remember that higher dividend yields are also equally with a higher risk.

Today I would like to screen all higher yielding stocks with a dividend yield over 5 percent and a market capitalization above the 2 billion mark by its payout ratios. I’m hunting for opportunities that pay less than 50 percent of its earnings. I believe that there should be more room for a small dividend hike if earnings are not cyclic and grow over the time.

Fifteen high yielding stocks fulfilled these criteria of which eleven are currently recommended to buy.

13 Large Cap Financials With High Potential To Boost Dividends

Financial dividend stocks with low payout ratios and relatively small debt figures originally published at long-term-investments.blogspot.com. I started an article serial about stocks with low dividend payout ratios and small debt figures this month.

I believe that these two ratios have a big impact to judge the ability of a corporate to grow at a faster pace and hike dividends in the future.

Today I would like to discover the financial sector by stocks with a less than 20 percent dividend payout ratio and a debt to equity leverage of less than one. Because of the huge amount of results, I will only look at those stocks with a market capitalization over USD 10 billion.

Exactly thirteen financial stocks fulfilled these criteria of which one is a High-Yield.