Dividend stocks have gotten quite popular recently, as investors scramble to earn income from their portfolios. But you don't want to overpay for dividend stocks. How can you find good values in the dividend arena?
In the following video, Dan Caplinger, The Motley Fool's director of investment planning, looks at three stocks that have solid dividend yields and reasonable valuations. Specifically, Dan looks closely at AbbVie (NYSE:ABBV), AT&T (NYSE:T), and ConocoPhillips (NYSE:COP) all of which have yields above 3% and none of which trades at more than 12 times trailing 12-month earnings. Dan goes through the pluses and minuses of all of those stocks, noting that the telecommunications company from the Dow Jones Industrials (DJINDICES:^DJI) has the highest yield of the three but that all of the stocks have good growth prospects as well as income. Dan concludes that these three stocks make a good place to start for those looking for dividend stocks at reasonable prices even after the Dow's record-setting run in recent years.
Top dividend stocks for the next decade
The smartest investors know that dividend stocks simply crush their non-dividend-paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.
Dan Caplinger and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.