I get questions from retired and income investors asking about oversold dividend stocks.
In the current market, a lot of dividends stocks — particularly the more well-known ones — are hitting new 52-week highs on a regular basis.
These investors want to know if buying at all-time or 52-week highs is a mistake.
The answer is usually, “it depends.” If you have a long-term horizon of, say, ten years or more, it doesn’t really matter.
The other answer, however, is that if the investor is looking for solid dividend stocks, there’s no reason to confine oneself to Johnson & Johnson (JNJ).
There are other dividend payers out there, and I prefer to look for stock that are 10% or more off their 52-week highs.
I personally use the technical indicator of the RSI in order to identify really oversold dividend paying stocks.
It suggests that, in an environment where everyone is looking for yield, that the stock has sold off for reasons that aren’t critical to its ongoing operations. That creates a buying opportunity.
Here are 20 higher capitalzied dividend stocks with yields over 4% looking oversold and undervalued:
A dividend stock investor would naturally assume that with the stock market being so strong over the past three months, it would be difficult to find solid paying dividend stocks at reasonable prices.
However, in perusing through the list of our top tanked dividend stocks, several candidates emerge as good value even as the Dow Jones Industrial Average is hitting all-time price highs.
The fact is that there are still a bountiful amount of dividend gems to be ferreted out by smart investors.
I ran our screener and looked for those stocks that were down 10% in the past three months with dividend yields over 2%.
The stock list primarily comes from the utility, health care and consumer staples sectors. Each company’s stock price has suffered as more economically sensitive sectors have taken off, including financial, industrial and energy stocks.
Here is an examination of the five outstanding dividend stocks that should be on your radar screen at discounted prices.
The only thing that is better than buying the stock of a great company is buying a stock of a great company at a low price.
While there aren't a whole lot of companies out there selling at decent discounted prices these days -- the market is hitting all-time highs, after all -- there's still a decent handful of stocks that investors should consider if they want to buy a company on the cheap.
After all, picks trading that low often have gone through hard times. And while you can sometimes catch a falling knife and make a bundle on a swing trade, cheap dividend stocks are inherently long-term investments.
I mean, what’s the point of buying an income investment only to trade out of it before the ex-dividend date?
As the old saying goes, price is what you pay but value is what you get. So instead, investors should look at valuation metrics and payout ratios to determine which are the best cheap dividend stocks to buy now.
So we run a stock screener to find stocks currently trading for a 'cheap' price. There came a lot results but we like to share the best in our view with you.
These are the results...
The odds of a Federal Reserve rate hike in December are only going up, but even if the central bank pulls the trigger, dividend stocks will always remain in style.
True, they could come under price pressure because they compete with bonds for investor dollars, but they typically don’t stay down for long. It’s not like we’re looking at anything but the most minimal raise anyway.
So while interest rates will go up, they’ll still be pitifully low. That’s where superior dividend stocks come in. Names with solid track records of stable and in some rising dividends are under consideration for an equity income portfolio. If they can deliver above-average price appreciation too, so much the better.
Combine the two, and you’ve got a market-beating total return engine.
We searched the S&P 500 to find these types of stocks. Mind you, the benchmark index has a subpar dividend of its own, at just 2.2%. It’s easy to find stocks with higher yields, but then, a high yield can be a warning sign for a dividend payer. The highest-paying names in the S&P 500 all have issues that the market is rightly worried about.
Here are the results of our research....
When it comes to the history of wealth, there is always one sector that needs to be mention, and that is real estate. The cash flow that real estate investing brings in from business operations can be great, especially for dividend investors.
Purchasing a rental property in your local neighborhood is pretty easy to do because the capital required is not a great amount. However, when it comes to investing in the healthcare real estate sector, it is much more difficult–that is, unless you have millions of dollars in your bank account.
There are a lot of healthcare Reits on the market with solid yields which have been grown over years. I will show you some of the highest yielding and most promising healthcare Reits with the attached list.
Here are the highest yielding and most promising healthcare Reits...
