Dividend stocks are more popular than ever, with investors looking for more income from their investments. But with many dividend stocks fetching high prices, 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 Pfizer (NYSE:PFE), Transocean (NYSE:RIG), and Verizon (NYSE:VZ), 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 drug giant has the lowest yield of the three but could have the best growth prospects thanks to its impressive drug pipeline. Dan concludes that you can feel comfortable using these three stocks as the beginning of your dividend-stock research, even though they have both strengths and weaknesses.