Published Tue, 08 Jan 2019 10:35:30 -0500 on Seeking Alpha
Welcome to December’s edition of “U.S. Dividend Stocks On Discount”. Each month, I create a list of U.S. dividend stocks with heavy discounts in the last month. The purpose is to identify potential bargains for dividend investors.
But we need to be careful! As you surely know, a dropping stock price typically means one of the two things: either it is an opportunity to get more bang for your buck, or it is a warning sign that the company is facing serious headwinds and future dividends may be in trouble.
To assist you in evaluating the situation, I look at the three quality dividend stocks with high discounts. The objective is to give a solid overview of the company’s fundamentals and current situation by:
checking the long-term profit-growth based on earnings and cash flows. checking if dividends are secure by looking at cash flows, and if necessary, debts and assets as well. checking the current valuation using a dividend focused perspective by comparing current to historic dividend yield. This is done by what I call the relative dividend yield, which is based on the logic of the implied volatility rank used in option trading. In short, the relative dividend yield examines the current dividend yield in relation to its historical context. The metric's value ranges from 0 to 100. 100 means the current dividend yield is on all-time-high. If the current dividend yield is on all-time-low, the relative dividend yield is 0. checking the current... Read more
|Stock name||Last trade||P/E||Earnings/Share||Dividend/Share||Dividend yield|
|HELMERICH & PAYNE||50.62||76.7||0.66||2.84||5.61|
|PHILIP MORRIS INTERNATIONAL||87.71||17.7||4.95||4.56||5.59|
|UNITED PARCEL SERVICE||102.80||19.6||5.24||3.84||3.64|
|WALGREENS BOOTS ALLIANCE||54.44||10.7||5.10||1.83||3.23|
|AIR PRODUCTS & CHEMICALS||224.53||29.3||7.67||4.64||2.05|
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