5 Cheap Stocks Paying High Dividend Yields

PLDT makes the list

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Jan 26, 2021
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As of Jan. 26, the GuruFocus All-in-One Screener, a Premium feature, found that the following companies have low price-earnings ratios and high dividend yields.

Prosperity Bancshares

Prosperity Bancshares Inc.'s (PB) dividend yield is 2.66% and the payout ratio is 0.36. Shares are trading with a price-earnings ratio of 13.39 and a price-book ratio of 1.07. The company's average yield was 1.91% over the past 10 years.

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The share price has risen 2.75% over the past 12 months and is now 5.60% below the 52-week high and 68.99% above the 52-week low.

The bank has a GuruFocus profitability rating of 4 out of 10. The return on equity of 8.55% and return on assets of 1.57% are outperforming 57% of companies in the banks industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 8.07 is below the industry median of 1.55.

Barrow, Hanley, Mewhinney & Strauss is the company's largest guru shareholder with 1.14% of outstanding shares, followed by Ken Fisher (Trades, Portfolio) with 0.32% and Robert Olstein (Trades, Portfolio) with 0.12%.

PLDT

PLDT Inc.'s (PHI) yield is 5.07%. Shares are trading with a price-earnings ratio of 11.77 and a price-book ratio of 2.71. The company's average yield was 5.53% over the past 10 years.

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The stock has risen 18.12% over the past 12 months and is now 4.41% below the 52-week high and 130.98% above the 52-week low.

The telecommunications carrier has a market cap of $6.57 billion and a GuruFocus profitability rating of 7 out of 10. The ROE of 23.37% and ROA of 4.88% are outperforming 71% of companies in the telecommunication services industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.17 is below the industry median of 0.32.

With 1.57% of outstanding shares, Jim Simons (Trades, Portfolio)' Renaissance Technologies is the company's largest guru shareholder.

Jefferies Financial Group

Jefferies Financial Group Inc.'s (JEF) dividend yield is 2.43% with a payout ratio of 0.23. Shares are trading with a price-earnings ratio of 9.05 and a price-book ratio of 0.68. The company's average yield was 1.28% over the past 10 years.

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Shares have increased 18.12% over the last 12 months and are now 4.41% below the 52-week high and 130.98% above the 52-week low.

The financial services company has a GuruFocus profitability rank of 5 out of 10. The ROE of 7.93% and ROA of 1.53% are outperforming 90% of competitors in the diversified financial services industry. Its financial strength is rated 4 out of 10 with a cash-debt ratio of 0.86.

First Pacific Advisors (Trades, Portfolio) is the company's largest guru shareholder with 6.78% of outstanding shares, followed by Steven Romick (Trades, Portfolio) with 4.57% and Barrow, Hanley, Mewhinney & Strauss with 3.81%.

Huntsman

The dividend yield of Huntsman Corp (HUN) is 2.31% with a payout ratio of 0.92. Shares are trading with a price-earnings ratio of 6.33 and a price-book ratio of 1.92. The company's average yield was 2.60% over the past 10 years.

Shares have climbed 24% over the past 12 months and are now trading 3.50% below the 52-week high and 130.25% above the 52-week low.

The U.S. company, which manufactures differentiated organic chemical products, has a GuruFocus profitability rating of 6 out of 10. The ROE of 33.55% and ROA of 12.09% are outperforming 89% of companies in the chemicals industry. Its financial strength is rated 5 out of 10 with a cash-debt ratio of 0.45.

With 3.10% of outstanding shares, Yacktman Asset Management (Trades, Portfolio) is the company's largest guru shareholder, followed by Yacktman Fund (Trades, Portfolio) with 1.59% and Chuck Royce (Trades, Portfolio) with 1.12%.

MDU Resources

MDU Resources Group Inc.'s (MDU) dividend yield is 2.96% and the payout ratio is 0.44. Shares are trading with a price-earnings ratio of 14.89 and a price-book ratio of 1.84. The company's average yield was 3% over the past 10 years.

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Shares have declined 2.18% over the past 12 months and are currently trading 12.73% below the 52-week high and 87.47% above the 52-week low.

The construction and natural resources company has a GuruFocus profitability rating of 6 out of 10. The ROE of 12.96% and ROA of 4.75% are outperforming 63% of competitors in the building materials industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.03 is below the industry median of 0.5.

Simons' firm is the company's largest guru shareholder with 0.20% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.11% and Joel Greenblatt (Trades, Portfolio)'s Gotham Asset Management with 0.08%.

Disclosure: I do not own any stocks mentioned.

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