While the markets go down, there could be a great change to find cheaper stocks, bargains or undervalued companies.
If a stock is really cheap, there are many criteria you must check. I do it every day but my main criteria from desk research are fundamentally driven.
Today I use one of my alternative screeners with data access to Standard & Poor’s. The screen looks for cheap valuated dividend paying stocks.
You can find few results attached. I hope you get new ideas and inspirations from this and if you like, you can also easily subscribe my news. Thank you for reading.
The following criteria have been used to create this view:
- Modest dividend of at least 2%.
- Potentially undervalued at Discount > 10%
- Acceptable financial position.
- No 'warning' companies. Good Coverage Ratios
Here are the top yielding results in detail...
Valuation is a key element when you consider putting money into stocks. A high valuated stock should also have high secured growth. If not, you might overpay the stock.
But a cheap valuation could also indicate the corporate is significant shrinking.
Each investor needs to evaluate the risk of the stock.
Today I like to show you the cheapest stocks below the Dividend Achievers. Those stocks have risen dividend year over year for a decade without a break and offer a single forward P/E.
21 Companies have such a low valuation measure. Attached you will find the complete list with a few essential fundamentals.
Here are the top yielding stocks in detail...
Everyone has a different appetite for risk. Some people like to chase those high growth companies that have chances of doubling in a year or two, while others would likely never sleep at night while three out of 10 of its investments destroy the market while the other 7 crash & burn.
If you are one of those investors that don't have the sensibility to invest in those higher risk/higher reward type of companies, that's ok, there are plenty of lower risk companies that can generate good returns over time.
One ratio to measure the risk compared to the market is the beta ratio. A ratio under one shows us that the unique stock moves less than the overall market while a ratio far above one indicates that the stock is more volatile than the market.
If you look for more stability of your portfolio, you should look at low beta stocks. Mostly, you need to give up some of your return or dividend yield due to the higher safeness. But only sometimes.
Attached you can find a couple of stocks with the lowest beta ratio on the market while paying the highest available yields in their field. I've only included stocks with a market cap of more than 2 billion.
These are the results...
The markets become more and more volatile. It's a real rollercoaster. One day, the Dow is up 300 points, the second day down 400. No one knows where is the trend. Short-Term it's decreasing.
A technical momentum indicator that compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions of an asset is the Relative Strength Index - RSI.
The RSI ranges from 0 to 100. An asset is deemed to be overbought once the RSI approaches the 70 level, meaning that it may be getting overvalued and is a good candidate for a pullback. Likewise, if the RSI approaches 30, it is an indication that the asset may be getting oversold and therefore likely to become undervalued.
Today I would use this approach by showing you some undervalued stocks with a RSI of less than 30. It's a small indication that the stock could be overbought.
I've only used my Dividend Achievers List, stocks with 10 years or more of consecutive dividend growth. In addition, each of the stocks have a low forward P/E of less than 15.
These are the 20 highest yielding stocks with a RSI under 30....
The best dividend stocks pay rising dividends year after year. These are typically well known businesses with long dividend histories.
But that's not all. You have to look at much more than on consequent paid dividends. You must look at debt ratios, growth figures, valuation levels, and much more.
However, global economic headwinds are leaving investors perplexed about which stocks to bank on. The markets have been on a roller coaster ride in the recent past – either due to the flagging Chinese economy, the Eurozone debt crisis or the U.S. Federal Reserve’s pending decision over the first rate hike. Moreover, weakness in the energy sector and a strong dollar are nagging concerns.
We have to focus on stocks with long-term potential to avoid short-term problems. Today's screen is long-term orientated. I've put my focus on the best 5 year earnings growth forecast.
These are my screening criteria in detail
- Dividend Achiever Member (over 10 year's consecutive dividend growth)
- 5 Year Predicted EPS Growth Over 5%
- Market Cap over 2 Billion
- Forward P/E under 15
- Debt/Equity under 0.5
18 stocks jumped on my screen. The results can be found at the end of this wonderful article.
Here are the 5 top yielding results...
While the markets go down, there could be a great change to find cheaper stocks, bargains or undervalued companies.
