Cheap Dividend Stockshttp://www.fool.com/investing/general/2012/02/22/cheap-dividend-stocks.aspx Russ Krull
February 22, 2012
Barron's feature article this week is on the top 1,000 investment advisors in the U.S. I thought the most interesting line in the report was in the subtitle: "Their single biggest recommendation: Buy dividend stocks."
My Foolish colleague Morgan Housel recently made a convincing case that valuations in the dividend-stock universe are getting rich as investors reach for yield. Dividend stocks are popular here at the Fool and I'm both a fan and a cheerleader. But it's concerning as a contrarian for me to see any investing approach getting popular.
With dividend-stock prices bid up, are there still good bargains out there? A screen should help answer that question. I wanted to find out if there are still stocks trading at a discount to the market, but with above-market dividend yields and solid balance sheets. To get the answer, CAPS screener was run with the following parameters:
The screen kicked out 33 stocks covering a variety of sectors, including these five: