Friday, July 6, 2012

6 Analyst-Backed Dividend Stocks Trading At Discount


Dividend investors can all agree that high yields are nice, but they're even better when the payouts are sustainable. Today we focused on dividend stocks with solid yields (3%+) with steady payout ratios, but that also look undervalued by their fundamentals. To hone in on the best in class, we focused in on stocks with analyst ratings of 'Buy', or 'Strong Buy'. We think you'll like the list we came up with.The Price/Book Value Ratio is a great price-multiple valuation metric to find companies that could be potentially undervalued or overvalued. If a firm has a Price/Book Value Ratio of less than 1 it is stated to be trading below "break up" value. A lower P/BV Ratio can indicate a potentially mispriced company or indicate that something is fundamentally wrong with it.The Price/Earnings ratio is one of the most commonly used price-multiple metrics. Often, EPS from the last
... Read the rest at SeekingAlpha.com

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