Despite the stock market setting record highs seemingly on a daily basis, plenty of quality companies are hitting fresh 52-week lows.
Buying quality cyclical companies that are in the low end of their industry cycles is literally the best time ever to buy SWAN ("sleeping well at night") stocks, including fast-growing dividend aristocrats, the Dividend Kings recently explained.
Here are the Dividend Kings’ all quality dividend payers at unjustified 52-week lows.
5 dividend stocks trading at 52-week lows worth considering
- Expedia (EXPE)
- Energy Transfer LP (ET)
- C.H Robinson (CHRW)
- Ventas (VTR)
- CBS (CBS)
Each is between 4% to 62% undervalued, and likely to deliver not just safe dividends but double-digit, market-beating long-term total returns as well.
Each offers not just safe and growing income, but from current valuations is likely to deliver double-digit total returns that should put the market's 3% to 7% CAGR (Compound annual growth rate) total returns to shame over the next seven to 15 years.
Goldman Sachs recently advised savvy investors that shares paying big dividends haven’t been this cheap in at least 40 years.
The valuation gap between high- and low-dividend-yield stocks is close to the widest it has been since around 1980, CNBC.com quoted the bank as saying.
"The market is pricing in 'an overly pessimistic' level of dividend payouts with the swap-market prices implying a 2.7% growth in S&P 500 dividend per share through 2023, well below Goldman’s estimate for 5% annual growth over the next five years," CNBC explained.
“Dividend growth pessimism is evident in the valuation of high dividend yield stocks,” Goldman chief U.S. equity strategist David Kostin said in a note cited by CNBC. “Other metrics, such as EV/Sales and Price/Book, also show high dividend yield stocks trade at an unusually large valuation discount relative to stocks with low dividend yields.”
He suggested Morgan Stanley (MS) and Best Buy (BBY)
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