5 Cheap Stocks Paying High Dividend Yields

The Kroger Co makes the list

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Mar 24, 2021
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As of March 24, the GuruFocus All-in-One Screener, a Premium feature, found that the following companies have low price-earnings ratios and high dividend yields.

M&T Bank

The M&T Bank Corp's (MTB) dividend yield is 2.89% and the payout ratio is 0.44. Shares are trading with a price-earnings ratio of 15.30 and a price-book ratio of 1.31. The company's average yield was 2.45% over the past 10 years.

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The share price has climbed 49.25% over the past 12 months and is now 7.68% below the 52-week high and 78.72% above the 52-week low.

The U.S. regional bank has a GuruFocus profitability rating of 5 out of 10. The return on equity of 8.02% and return on assets of 1.02% are outperforming 52% of companies in the banks industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 5.75 is below the industry median of 1.68.

Pioneer Investments (Trades, Portfolio) is the company's largest guru shareholder with 0.40% of outstanding shares, followed by Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.09% and BAILLIE GIFFORD & CO with 0.06%.

Entergy

Entergy Corp.'s (ETR) yield is 3.82% and the payout ratio is 0.54. Shares are trading with a price-earnings ratio of 14.27 and a price-book ratio of 1.80. The company's average yield was 4.45% over the past 10 years.

The stock has risen 21.59% over the past 12 months and is now 17.67% below the 52-week high and 30.91% above the 52-week low.

The company has a market cap of $19.74 billion and a GuruFocus profitability rating of 6 out of 10. While the ROE of 13.16% is outperforming the industry, the ROA of 2.59% is underperforming 52% of companies in the utilities - regulated industry. Its financial strength is rated 3 out of 10. The cash-debt ratio of 0.07 is far below the industry median of 0.27.

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With 0.91% of outstanding shares, Barrow, Hanley, Mewhinney & Strauss is the company's largest guru shareholder, followed by Simons' firm with 0.49% and Steven Cohen (Trades, Portfolio) with 0.21%.

ORIX

ORIX Corp. 's (IX) dividend yield is 3.97% with a payout ratio of 0.48. Shares are trading with a price-earnings ratio of 12.29 and a price-book ratio of 0.82. The company's average yield was 2.51% over the past 10 years.

Shares have climbed 73.05% over the last 12 months and are now 0.46% below the 52-week high and 71.81% above the 52-week low.

The diversified financial services company has a GuruFocus profitability rank of 5 out of 10. The ROE of 6.75% and ROA of 1.53% are outperforming 55% of competitors in the credit services industry. Its financial strength is rated 3 out of 10 with a cash-debt ratio of 0.21.

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PPL

The dividend yield of PPL Corp. (PPL) is 5.61% with a payout ratio of 0.67. Shares are trading with a price-earnings ratio of 15.41and a price-book ratio of 1.70. The company's average yield was 5.20% over the past 10 years.

Shares have climbed 44.74% over the past 12 months and are now trading 4.36% below the 52-week high and 63.30% above the 52-week low.

With a market cap of $22.75 billion, the company has a GuruFocus profitability rating of 7 out of 10. The ROE of 11.06% and ROA of 3.14% are outperforming 57% of companies in the utilities - regulated industry. Its financial strength is rated 3 out of 10 with a cash-debt ratio of 0.3.

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With 2.45% of outstanding shares, HOTCHKIS & WILEY is the company's largest guru shareholder, followed by Pioneer Investments (Trades, Portfolio) with 0.67%, Cohen with 0.06% and Caxton Associates (Trades, Portfolio) with 0.04%.

The Kroger

The Kroger Co.'s (KR) dividend yield is 1.98% and the payout ratio is 0.21. Shares are trading with a price-earnings ratio of 10.89 and a price-book ratio of 2.81. The company's average yield was 1.73% over the past 10 years.

Shares have risen 5.63% over the past 12 months and are currently trading 17.66% below the 52-week high and 29.53% above the 52-week low.

The American grocer has a GuruFocus profitability rating of 8 out of 10. The ROE of 27.29% and ROA of 5.46% are outperforming 73% of competitors in the retail - defensive industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.14 is below the industry median of 0.42.

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Warren Buffett (Trades, Portfolio)'s Berkshire Hathaway is the company's largest guru shareholder with 4.40% of outstanding shares, followed by Simons' firm with 3.24%, Ray Dalio (Trades, Portfolio) with 0.08% and Jeremy Grantham (Trades, Portfolio) with 0.06%.

Disclosure: I do not own any stocks mentioned.

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