Cheap Dividend Yielding Stocks To Profit From
Dividend investors looking for a new stock to add to their portfolio should consider Big Lots, Federated Investors and Janus Henderson Group. These companies are currently undervalued, which means investors will gain from dividend income as well as capital appreciation over time. I’ve made a list of value-adding dividend-paying stocks for you to consider for your investment portfolio.
Big Lots, Inc. (NYSE:BIG)
Big Lots, Inc., through its subsidiaries, operates as a community retailer in the United States. Formed in 1967, and currently lead by , the company size now stands at 22,900 people and with the market cap of USD $1.82B, it falls under the small-cap group.
Big Lots has been paying dividend over the past 4 years. It currently paid an annual dividend of US$1.20, resulting in a dividend yield of 2.78%. At the current payout ratio of 22.56%, BIG’s yield exceeds United States’s low risk savings rate of 1.42%. Analysts forecast future payout ratio to be 24.66%, indicating that BIG’s upcoming dividend payments are well-covered by earnings. In addition to this, BIG is also trading beneath its true value by 32.44%, meaning BIG can be bought at an attractive price right now. Interested in Big Lots? Find out more here.
Federated Investors, Inc. (NYSE:FII)
Federated Investors, Inc. is a publicly owned asset management holding company. Started in 1955, and now led by CEO John Donahue, the company provides employment to 1,441 people and with the company’s market cap sitting at USD $2.73B, it falls under the mid-cap group.
Over the past 10 years, Federated Investors has been distributing dividends back to its shareholders, with a recent yield of 4.00%. Its dividend yield exceeds the top dividend-paying companies in United States, with the average dividend yield of 3.95%. Furthermore, its dividend payment has been increasing over time, and analysts expect future earnings to cover this payout moving forward. In addition to this, FII is also undervalued by 46.91%, meaning FII can potentially bring about strong capital gains through mispricing. More on Federated Investors here.
Janus Henderson Group plc (NYSE:JHG)
Janus Henderson Group plc is an asset management holding entity. Formed in 1934, and now run by Andrew Formica, the company provides employment to 2,356 people and with the company’s market cap sitting at USD $6.30B, it falls under the mid-cap group.
Janus Henderson Group has been paying dividend over the past 1 years. It currently paid an annual dividend of US$1.28, resulting in a dividend yield of 3.99%. In addition to JHG’s dividend yield surpassing United Kingdom’s low risk savings rate of 1.42%, it also exceeds the best-in-class dividend payer average yield of 3.95%. The company’s payout ratio currently stands at 24.17%, indicating that net income properly covers dividend payments. JHG is trading beneath its true value by 21.25%, meaning JHG can potentially bring about strong capital gains through mispricing. Interested in Janus Henderson Group? Find out more here.
For more mispriced dividend stocks to add to your portfolio, explore this interactive list of undervalued dividend payers.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
