Dividend-News
Daily dividend news for investors in dividend stocks
6 Undervalued, High-Yield Stocks Raking In The Profits
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Published Wed, 16 May 2012 10:58:50 -0400 on Seeking Alpha
Interested in earning dividend income? Looking for undervalued stocks? Do you prefer companies with strong profits? We ran a screen you might be interested in. The Price/Earnings ratio is one of the most commonly used price-multiple metrics. Often, EPS from the last four quarters is used to derive this number. A firm that has a high P/E ratio generally indicates that investors have high expectations of the firm relative to future earnings growth. By the opposite token, investors generally have lower expectations of a firm with a low P/E ratio. A firm that holds a P/E below 10 could be viewed as having "value investment" potential. One thing to remember is that EPS is an accounting measure that could be potentially manipulated. Thus the P/E is only as good as the quality of the earnings. The forward P/E is a price multiple valuation metric, which is similar to the current... Read more


