6 Solid Dividend Stocks With Healthy Balance Sheets And Growth Perspectives

Companies that pay well above average dividend yields tend to have problems such as slowing growth or weaker balance sheets.

However, that high yield is the reward investors can earn by taking on a bit more risk. That said, sometimes the risks are not as bad as the market thinks, which makes the reward well worth it.

Attached you will find a couple of great dividend growth stocks with a healthy balance sheet and rosy growth persectives. Above all, the current price multiple, measured by forward P/E is at an acceptable level.

Here are 6 stocks that we think fit that profile....

29 Undervalued Dividend Stocks

Each company has a dividend yield of at least 3% and the ability to increase payouts.

With dividend stocks hot this year, some market experts are advising investors to be cautious and selective. 

Identifying companies with room to raise dividends significantly, rather than focusing on finding the highest yields, might be your best way forward.

So we decided to take a deep dive into the S&P 1500 Composite Index, the S&P 400 Mid-Cap Index MID and the S&P Small-Cap 600 Index in order to identify possible dividend-stock bargains in every sector.

Here are all 29 stocks that passed the screen, broken down by sector:

10 Cheap Dividend Growth Stocks Below $20 Price

Contrary to popular belief, not all dividend stocks are priced at double- and triple-digit levels. 

Some of them are downright cheap stocks, with prices below $20 per share, allowing income-seeking investors to own a round lot of them for not a lot of money.

Better still, while theoretically it shouldn’t matter, in reality, cheap stocks don’t face the eventual psychological hurdle of being valued at eye-popping prices that even cause veteran investors to balk.

With that in mind, here’s a closer look at nine attractive but cheap dividend stocks — each priced at less than $20 per share — that also offer nice to downright outstanding yields.

Each member of the attached stock list has grown dividends over more than 5 consecutive years while the market exceed 2 billion. More important is the valuation. The forward P/E is also under 15.

Only 10 stocks have a price tag below USD 20 per share.

These are the results...

32 Of 60 S&P 500 Dogs Have Cash Margins To Cover Dividends

“Dogs of the Dow” is a popular investment strategy. There are thousands other or similar strategies out there trying to beat the market by finding undervalued stocks without deep research.

The approach is simple and easy. On seeking alpha, there are many writers creating great screens with attractive stocks. 

Attached you will find a list of dogs from the S&P500. A dog by definition from the article is a stock from the S&P 500 with a dividend yield higher than their peers and lower than their historical average.

High yields also under pressure of dividend cuts. In order to eliminate those risks, the author created the safety margin rule. This ratio shows how much of the dividend yield is covered by the free cash flow yield. A ratio below 100% tells us that the dividend is paid with free cash, generated by operating activities.

Check out the dogs with high safety margins here...

7 Dividend Aristocrats With 20% Return On Investment

Many conservative dividend investors like to review the Dividend Aristocrats and Dividend Kings lists for investment ideas, but most of these dividend stocks don't offer high yields. 

High-yield stocks usually come with high risks. However, the 7 companies identified from the Dividend Aristocrats list here have all a return on investment of at least 20%. 

Finding such a combination of capital efficiency and capital appreciation is rare, but each of these companies has been successful and offers a dividend yield ranging from 1.22% to 3.25%. 

Let's take a look at these high dividend stocks that have a return on invetment of at least 20%.

These are the results...