Tuesday, July 24, 2012

4 Profit-Generating Dividend Stocks Still Priced Below Fair Value


Are you a dividend investor on the hunt for profitable companies paying out reliable dividend income? Do you prefer mid to high yields, especially when their payout ratios are sustainable? If so, today we ran a screen that focuses on these traits. The companies we focused have these properties, but additionally look under-priced, according to their current price-multiples. The list of companies we came up with is short and diverse, but holds the kind of yields we think you're looking for.The Price/Earnings ratio is one of the most commonly used price-multiple metrics. Often, EPS from the last four quarters is used to derive this number. A company that has a high P/E ratio generally indicates that investors have high expectations of the company relative to future earnings growth. By the opposite token, investors generally have lower expectations of a company with a low P/E ratio. A company that holds
... Read the rest at SeekingAlpha.com

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