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The following video is part of our "Motley Fool Conversations" series, in which consumer goods editor and analyst Austin Smith discusses topics across the investing world.

In today's edition, Austin explains why he owns shares of debt-laden SUPERVALU. With its high short interest, the company gets no love from the Street, but that doesn't mean it isn't a buy today. Despite difficulties, it's still screamingly cheap. Fortunately it has some time to manage its debt. Most of the debt carries a high 7%-8% interest rate, but the majority of it isn't due until 2016 or beyond. This gives the company time to pay down what it can, and refinance as needed.

One of the nice things about SUPERVALU is its high dividend; at 5.5%, it provides a nice steady income boost each quarter. To learn about more companies with great dividends, you can read our special free report: "Secure Your Future With 9 Rock-Solid Dividend Stocks." You can access your copy today at no cost! Just click here to discover the winners we've picked.

Austin Smith owns shares of SUPERVALU. The Motley Fool owns shares of SUPERVALU and Whole Foods Market. Motley Fool newsletter services recommend Whole Foods Market. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.

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10/28/2016 12:03 PM
SVU $4.40 Up +0.04 +0.92%
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