Despite the broad market being up over 15% over the past six months, there are still many concerns in investors' minds. A potential bubble in emerging markets, recent protests abroad, and the possibility of a slowdown in the U.S. market all combine to make investors jittery.
The silver lining though is that many quality stocks are still trading on the cheap and have plenty of cash to dish out to shareholders, and this could mean great opportunities for savvy investors.
I ran a screen for basic material companies paying dividends above 2%, that are trading for P/Es below 17, and that have CAPS ratings of at least four stars as rated by our 165,000-strong investing community. I've sorted them in order of their dividend yield. Below are seven stocks that fit that exact criteria:
|
Stock |
Dividend Yield |
Paying Dividends Since |
Price-to-Earnings Ratio |
CAPS Rating (out of 5) |
|---|---|---|---|---|
|
BP Prudhoe Bay Royalty Trust |
8.4% |
1989 |
11.8 |
**** |
|
MV Oil Trust |
7.3% |
2007 |
13.5 |
***** |
|
EV Energy Partners LP |
7.2% |
2007 |
11.0 |
**** |
|
Pengrowth Energy |
6.8% |
2004 |
13.3 |
***** |
|
Cross Timbers Royalty |
6.8% |
1992 |
16.1 |
***** |
|
TransMontaigne Partners LP |
6.4% |
2005 |
15.5 |
***** |
|
Buckeye Partners LP |
6.0% |
1988 |
17.0 |
***** |
Source: CAPS data as of Jan. 31.
Granted, there are probably good reasons why some of these stocks are trading so cheaply. The majority of these companies are tightly connected to the oil and gas markets, and these stocks can be pretty volatile. In addition, many are set up as LPs or as trusts, which mean they have a different corporate structure than your typical publicly traded company, so make sure to do your due diligence before investing in one of these companies.
Nonetheless, these stocks are paying absurdly high dividends, and if income is what you're looking for, this could be a great place to start.
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