Dividend-News
Daily dividend news for investors in dividend stocks
6 Dividend Stocks with Low P/E Ratios
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Published Sun, 11 Dec 2011 06:42:57 -0500 on Seeking Alpha
Historically, buying stocks with low valuations has outperformed buying the broader market. This variant on buying low and selling high makes sense as long as the market values for cheaper stocks correct themselves over time. If they do not, a value investor might be stuck holding stocks at low prices. One way to avoid this problem is to buy value stocks which pay dividends. By paying shareholders directly, firms can compensate shareholders without relying on the equity markets. Dividends are a direct channel for stock returns that do not depend on market sentiment. The price-to-earnings ratio (PE ratio or P/E ratio) is a very popular measure of how cheap a stock is. Five stocks are listed below that have PE ratios under 10 (they are cheap), have grown equity value over the last 10 fiscal years, and also have histories of paying handsome dividends: Entergy Corporation (ETR) recently traded at... Read more


