The mantra of the stock market has always been to make hay while the sun shines. Therefore, you need to be watchful to check if some promising stocks are available at attractive prices. Most of the times, due to a short spell of dull performances of a particular stock, the market reacts strongly and pulls down the prices of this stock. These frequent overreactions of the market present wonderful opportunities for investors to get their hands on promising stocks that they would not get otherwise for such low prices. With the market going on in a dull phase now, the following dividend stocks are up for your grabs as they are trading at very low prices.
Money from waste
Would you have imagined that a company that collects and recycles your waste would come up as one of the most promising stocks currently at the stock market? We are talking about Waste Management (WM, Financial), a company that enjoys good reputation among investors, as it is a decent dividend stock. While it cannot be denied that the company did have its challenges last year due to rising metal prices, it has bounced back strongly. It is one of the very few waste collecting companies in the US today and therefore enjoys a market share that looks almost unbeatable. The cash flow generating capacity of the company has been quite excellent and its dividend yield is about 3%, which should bring joy to investors. With a forward P/E of 20 and a successful recycling business to reckon with, Waste Management is a wonderful stock to buy for investors who want long term returns. Historical dividends and stock movement trend of the company can be seen herewith:
Strategic acquisitions mark the success of this bank
In an era where banking sectors are facing not so favourable market conditions, one particular bank stock has been recommended by investing experts as a good buy. It is the BB&T Bank (BBT, Financial). In 2014, the bank posted close to 25% increase in its EPS ($2.75), which makes this stock look promising for the future as well. Another factor that proved highly profitable for the bank was its strategic acquisition of Susquehanna Bancshares (SUSQ, Financial), one of the biggest names in the retail and commercial banking sector. BBT not only acquired this main company, but also all the 245 branches of this bank, through which it got to extend its asset base to a great extent. BBT paid Susquehanna $4.05 in cash and 0.253 shares for this deal.
Through this acquisition, BBT’s deposits and assets increased by $13.6 billion and $18.6 billion respectively. To add to this factor, BBT’s cost cutting measures helped to improve its financial performance to a great extent during last. Decrease in non-interest expenses and increases in loans and deposits make BBT a promising stock to invest in for 2015. With a forward P/E of12, this stock has a dividend yield of 2.7% as of now. The dividend and share price history of the bank is seen below:
Conclusion
Investors, who are looking for long term gains, will find this stock market phase quite attractive, because it is the perfect moment to invest in some high profile dividend stocks at cheap rates. This is the time when these stocks are trading at low prices as the market focuses on their most recent financial performance or earnings report. These prices are not related to the future growth potential that these shares have; hence, it is wise to put your hard-earned money in these now. If you are a smart investor, you might want to get your hands on these stocks right away.
