6 Solid Dividend Stocks At Discount

Experts on retirement living talk about the 4% rule, which means, either earn 4% a year to avoid eating into savings or don't spend more than 4% when interest and savings combined are calculated.

Either way, that is a tall order, considering the level of interest rates. Think about how one's lifestyle would be improved with a 6% yield on the dividend portfolio.

However, reaching for yield is risky, so consider this, instead: A dividend-paying stock with a yield of 3% that is growing 15% annually will double an investor's monthly income in 4.8 years.

High-quality dividend stocks that offer investors this combination of yield and growth tend to enjoy a decent amount of appreciation to their stock prices.

And their dividend safety scores show a surprisingly low level of risk. Each of the seven stocks below yields at least 3% and has increased its dividend by at least 15% a year over the past five years.

Let's take a closer look at them here...

7 Higher Yielding Large Cap Stocks With Single-Digit Forward P/E's

Long-term investing is important for people who want a higher possibility of big returns. It's clear that you will not make 40% in a day with a solid large cap company.

You need time to get returns but you also need to be careful in terms of the price you pay for your investment. Only at cheap stock prices, you will make a high total return in the years to come.

I recently ran a stock screen to uncover income investments that fit the following criteria:

- Comfortably profitable
- Larger than $1 billion in market value
- Trading for a price-to-earnings ratio of less than 7.5x next year’s earnings
- A dividend yield of more than 3%

A number of companies popped up, including some volatile picks or overseas companies that only pay dividends once or twice a year.

These are the results...

7 Best Monthly Paying Dividend Stocks

Social Security pays retirement income every month, and so do many company benefit plans. Why not dividends? Credit card bills and housing and insurance costs are due every month, and financial professionals agree that managing cash flow is a big challenge.

For sure, only because a company pays a monthly dividend is not the most important reason. More important are cash flows, growth persectices, price ratios and other fundamentals.

Today I like to introduce 7 top stocks that pay dividends each month and each of them offer a solid ground for further research.

These are the results...

The Best Dividend Paying Dogs Of The S&P 500

S&P 500 Dogs Find Energy To Power July Dog Days
(Source: Seeking Alpha)

12 Cheapest Dividend Champions

Interested in finding undervalued dividend stocks? If so, the following list will likely be of interest to you.

To create the following list we started by compiling a universe of "Dividend Champions,” companies with a history of increasing dividends each year for at least the past 25 consecutive years. From there, we searched for the names that appear undervalued by low foward P/E. 

Buying cheap stocks is important in order to have a solid return on investment. Only at reasonable prices, related to the expected growth, you will have a good total return.

Today I've screened the Dividend Champions list by stocks with a low foward P/E of less than 15. Out of 105 stocks with a dividend growth history of more than 25 years, there are only 12 with cheap price multiples.

These are the results...