Most investors don't keep tabs on their companies' fundamental values. That's a mistake. If you take the time to read past the headlines and crack a filing now and then, you're in a much better position to spot potential trouble early. Better yet, you'll improve your odds of finding the underappreciated home run stocks that provide the market's best returns.
We can help you keep tabs on your companies with MyWatchlist.com, our free, personalized stock-tracking service. Here are three dividend stocks for your watchlist.
Similar to Qualcomm
- Add InterDigital to your Watchlist.
2. CAPS' Weekly Top Stock Idea: Microsoft
Each week, I cull a top stock idea from the pitches on CAPS, The Motley Fool's 170,000-member free investing community. Microsoft, a pick from January, caught my eye, since its shares have fallen over the past six months. Microsoft is no longer a tech darling, but it's still dominant in its markets, generates loads of cash, has a rock-solid balance sheet, and pays a 2.5% dividend while you wait. For all this, you have to pay only 10 times earnings, compared with Apple's
- Add Microsoft to your Watchlist.
3. Cisco Systems
Cisco, like competitors Juniper Networks
Cisco trades for a P/E of 12 and a P/FCF of 9.3, and has a rock-solid balance sheet, with net cash of just over $25 billion, or 30% of its market cap. Some dismiss its cash hoard, since most of it is overseas, but even if it were all brought back and taxed at a 35% tax rate, the company would still have a net cash position of $10 billion. On top of all this, Cisco pays a 1.5% dividend and has plenty of room to expand it. Furthermore, if a tax holiday for repatriating cash were instituted, Cisco would be able to bring its cash over and pay a large special dividend. This stock is definitely one to watch.
- Add Cisco to your Watchlist.
My Foolish bottom line
Consider these three stocks along with the 13 names in a free report from The Motley Fool's expert analysts, "13 High-Yielding Stocks to Buy Today." A senior retail analyst dubbed one of the picks as "the dividend play of a lifetime." Tens of thousands have requested access to this report, and today I invite you to download it at no cost to you. Get instant access to the names of these 13 high-yielders -- it's free.
The Motley Fool owns shares of Apple, Microsoft, Cisco, and Qualcomm and has created a bull call spread position on Cisco. Motley Fool newsletter services have recommended buying shares of Cisco, Riverbed Technology, Microsoft, InterDigital, and Apple, creating a diagonal call position in Microsoft, creating a bull call spread position in Apple, and shorting Juniper Networks. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insightsmakes us better investors. The Motley Fool has a disclosure policy.