Friday, July 27, 2012

3 Profit Earning Dividend Stocks Priced Below Market Value


Dividend investors understand the satisfaction that derives from receiving a payment from an investment. Having a portfolio that includes companies that pay equitable dividends is one way to build up personal wealth. Today we have a short list of companies from multiple sectors. They all are earning income and appear to be undervalued from a price-multiple analysis.The PEG ratio (price/earnings to growth ratio) is a valuation metric for determining the relative trade-off between the price of a stock, the earnings generated per share (EPS), and the company's expected growth. In general, the P/E ratio is higher for a company with a higher growth rate. Thus using just the P/E ratio would make high-growth companies appear overvalued relative to others. It is assumed that by dividing the P/E ratio by the earnings growth rate, the resulting ratio is better for comparing companies with different growth rates. A lower ratio is
... Read the rest at SeekingAlpha.com

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