5 Dividend Bargains From Surprising Places
5.58%March 12 | MyPlanIQ portfolio symbol P_37010
Dividend stocks continue to take pride of place as they provide income
as well as growth and are going to be an area of focus for some time to
come.
By Dan Caplinger of the Motley Fool reports on
five that may not be on many people's RADAR. He
looked for stocks that met two simple tests: a dividend yield above 3%
and a price-to-book ratio below one.
High yield was a simple filter but picking price-to-book as a measure of
value wasn't as clear. However, with the ongoing systemic stresses that
potentially distort
earnings, looking at an alternative valuation measure like book
value can reveal some stocks that others may have missed. He then goes on to outline his top five
Stock |
Dividend Yield |
Price-to-Book Ratio |
---|---|---|
ArcelorMittal (MT) | 3.2% | 0.55 |
Banco Santander (STD) | 5.9% | 0.71 |
CME Group (CME) | 3.2% | 0.87 |
Encana (ECA) | 4% | 0.91 |
France Telecom (FTE) | 9.1% | 0.98 |
Source: Motley Fool CAPS.
As of March 5.
This is a different list of companies that have broad markets and makes an interesting list. A bargain stock can be a source of growth or trouble so it is important to be cautious. However, this is a list worth measuring against our dividend bearing ETF portfolio: