I know how hard it is to find real investment opportunities. I personally bought some insurance stocks in the past because those are relatively cheap valuated and they offer a little upside with rising interest rates, despite the fact that they also could get hurt due the their huge fixed income portfolio.
Within the dividend growth community, some traders have announced that they have put Deere stocks into their portfolio. I also own stocks of Deere because its one of the leading companies within the farm and soft commodity space.
Below are five dividend ideas with single-digit forward P/E ratios and positive earnings growth for the next five years while debt ratios are acceptable.
These are the criteria in detail:
- Forward P/E under 10
- 5Y future earnings growth positive
- Large Caps
- Dividends positive
- Long-term debt-to-equity under 1
The selection is not huge. Attached is also a list with all details from the screen. Nine stocks are in focus of the screen.
- Warning! GuruFocus has detected 4 Warning Signs with AFL. Click here to check it out.
- AFL 15-Year Financial Data
- The intrinsic value of AFL
- Peter Lynch Chart of AFL
The Most Cheaply Valuated Dividend Stocks are...
#1 General Motors Company (NYSE:GM) has a market capitalization of $55.41 billion. The company employs 219,000 people, generates revenue of $155.427 billion and has a net income of $5.331 billion. General Motors Company's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $12.598 billion. The EBITDA margin is 8.11 percent (the operating margin is 3.16 percent and the net profit margin 3.43 percent).
Financial Analysis: The total debt represents 21.75 percent of General Motors Company's assets and the total debt in relation to the equity amounts to 84.92 percent. Due to the financial situation, a return on equity of 11.54 percent was realized by General Motors Company. Twelve trailing months earnings per share reached a value of $1.24.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 28.01, the P/S ratio is 0.36 and the P/B ratio is finally 1.31. The dividend yield amounts to 3.47 percent and the beta ratio has a value of 1.71. Read more here: 9 Of The Cheapest Large Cap Dividend Stocks The Market Has To Offers...