Sunday, May 6, 2012

3 Profitable Dividend Stocks That Look Undervalued


Do you like to be able to rely on a stock's dividend income? Looking for undervalued stocks? Do you prefer companies with strong profits? For ideas on how to go about your analysis, here is a list you might be interested in.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 'better' (cheaper) and a higher ratio is 'worse' (expensive) - a PEG ratio of 1
... Read the rest at SeekingAlpha.com

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