Now, following a six-year bull market, the markets look like inflated valuations in traditional income areas such as real-estate investment trusts, master limited partnerships and utilities. [more]
The P/E ratio is a strong indicator of whether a stock is a good value, and the lower the better. For this reason, many of the stocks with the lowest P/E ratios are broadly held by the investors.
However, a low P/E ratio requires further investigation, as the company could be in terminal decline, belong to an industry with endemic problems, or have other unfavorable valuations that make it unattractive as an investment.
Below are 5 of the cheapest stocks that were bought by investment guru's within the recent quarter. Four of the results pay a dividend. It's only a first step for further research but in my view, there are some interesting stocks on the list.
These are the results:
#1 Fifth Third Bancorp -- Yield: 2.50% [more]
Defensive Investors are defined as investors who are not able or willing to do substantial research into individual investments, and therefore need to select only the companies that present the least amount of risk.
When we look for undervalued companies, we often use metrics from Warren Buffett or his teacher Benjamin Graham. Both were great investors and their work was inspirational for millions of small pocket investors like me or you.
Below are five stock picks that met the criteria from the old investment gurus.
Here are the results....
Seagate Technology -- Yield: 4.31%Seagate Technology (NASDAQ:STX) employs 52,100 people, generates revenue of $13,724.00 million and has a net income of $1,570.00 million. The current market capitalization stands at $15.80 billion.
Seagate Technology’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,679.00 million. The EBITDA margin is 19.52% (the operating margin is 12.94% and the net profit margin 11.44%).
Financials: The total debt represents 41.30% of Seagate Technology assets and the total debt in relation to the equity amounts to 138.42%. Due to the financial situation, a return on equity of 49.63% was realized by Seagate Technology.
Twelve trailing months earnings per share reached a value of $5.75. Last fiscal year, Seagate Technology paid $1.67 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 8.54, the P/S ratio is 1.16 and the P/B ratio is finally 5.77. The dividend yield amounts to 4.31%. - Read more here: 5 Undervalued Dividend Stocks By Graham and Buffett... [more]
The Yield/Growth stock Report for June 2015 is out. I've compiled the 20 cheapest high yielding dividend growers in a Factbook. You find there also the 20 fastest growing stocks with cheap forward P/E. Check out the Factbook here. [more]
Dividends are important for income investors. The ex-dividend date is an important date related to the dividend payment. If you buy the stock before the ex-date, you will receive the next dividend. [more]