Dividend Stocks for Income and Value

Dividends are an integral part of value investing and we constantly screen for great dividend paying stocks for income that are reasonably valued or even undervalued. If you are an income investor, you will find excellent dividend stocks that can also offer nice price appreciation as well. We look for dividend stocks above $30 million in market cap.

According to historical research, dividends have represented over 50% of the total returns in the US markets since 1926. Although dividends used to be more relevant in the earlier part of the 20th century, they are making a comeback now for some of the very important characteristics of dividend paying stocks:

  • Regular dividends are a predictable income stream
  • Low yield environment such as today’s make dividend investing attractive of yield investors
  • Regular dividends protect against volatility
  • A sustained or growing dividend history indicates strong business fundamentals

For value investors that focus on managing risk, dividends also represent a way of regularly capturing the value in the stock. As the returns are captured faster than having to wait for capital appreciation, the inherent risk in the investment is reduced. Often, in cases of an undervalued stock, an increase in dividend may even be a catalyst for the stock to appreciate. Either way, an undervalued stock that also pays dividends is that much more attractive and should always be considered in this light

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Recent Articles on Dividend Stocks

TransGlobe Energy Corporation is a $550 million upstream oil and gas company headquartered in Canada, but with the vast majority of its operations located in Egypt. I’ve written before about searching for crises to look for stocks that have been overly beaten up by a herd of investors under the influence of what I call [...]

We start the new year with our annual list of the best dividend stocks for 2014. This screen contains 64 names across a variety of industries. This is a collection of stocks chosen primarily for their dividend yield, excellent dividend growth rate (5 year average) as well as the likelihood that the dividend will be [...]

High yield dividend stocks are attractive to investors in this environment of low interest rates. We went looking for some of the highest yielding dividend stocks in the market and then pared the list down by eliminating stocks with negative P/E ratio (i.e, unprofitable companies). Additionally, we eliminated the stocks that trade over the counter. [...]

The following 13 stocks have posted 52 week lows recently. Please note that since I have filtered for profitability, certain stocks that one might expect to be on this list (JC Penney, for example) are not listed. Tip: Click on the stock symbol to go to its own page where you will find other recent [...]

Jeremy Grantham from GMO is predicting increasing scarcity of food products and resources that go into farming. This would result in higher prices we pay to buy produce. This is probably not a surprise to most of our readers as I suggested investments in the agriculture sector more than a year ago. So with higher [...]