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.