Thursday, July 5, 2012

5 Financial Dividend Stocks Trading Below Value Despite Analyst Backing


Do you consider yourself a dividend investor, looking for strong yields and sustainable payouts? Are you especially interested when you can find good dividend stocks at a discount? One place to look is in the financial space, where stocks are just coming off of a large sell-off. We ran a screen for stocks with these traits, focusing on the financial companies that look undervalued from a price-multiple perspective. To narrow in on the best of breed, we selected for only those stocks that analysts have recommended to buy. You might like the list we came up with.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 firm that has a high P/E ratio generally indicates that investors have high expectations of the firm relative to future earnings growth. By the opposite token, investors
... Read the rest at SeekingAlpha.com

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