Are you on the lookout for undervalued stocks with an attractive dividend yield? If so, we have a stock list that may interest you.
We screened for stocks with a dividend yield over 3% and current ratio above 1. With a current ratio above this threshold we shouldn’t have to worry about the company having a liquidity crisis over the next year.
In order to asses value we looked for PEG ratios below 1 and price-to-free-cash flow ratios below 15. The PEG ratio is similar to the P/E ratio but it also accounts for earnings growth. A low price-to-free-cash flow ratio tells us that the company has high free cash flows and a low share price, hinting that this may be an undervalued stock.
Business Section: Investing Ideas
Our screening for cheap undervalued stocks with good dividends produced the list below. Use these as a starting point for your own analysis:
1. Marvell Technology Group Ltd. (MRVL, Earnings, Analysts, Financials): Designs, develops, and markets analog, mixed-signal, digital signal processing, and embedded and standalone ARM-based microprocessor integrated circuits. Market cap at $4.33B, most recent closing price at $7.76.
Dividend yield: 3.09%. Current ratio: 4.68 . PEG: 0.84 P/FCF: 6.89.
2. PDL BioPharma (PDLI, Earnings, Analysts, Financials): Provides prescription drugs for central nervous system and inflammatory disorders. Market cap at $1.1B, most recent closing price at $7.86.
Dividend yield: 7.43%. Current ratio: 2.56. PEG: .43 P/FCF: 9.35.
3. Questcor Pharmaceuticals, Inc. (QCOR, Earnings, Analysts, Financials): Provides prescription drugs for central nervous system and inflammatory disorders. Market cap at $1.53B, most recent closing price at $26.17.
Dividend yield: 3.06%. Current ratio: 2.31. PEG: .3 P/FCF: 9.22.
4. Sauer-Danfoss Inc. (SHS, Earnings, Analysts, Financials): Designs, manufactures, and markets hydraulic, electronic, and mechanical components, as well as software and integrated systems that generate, transmit, and control power in mobile equipment. Market cap at $1.9B, most recent closing price at $39.31.
Dividend yield: 3.56%. Current ratio: 2.58. PEG: .72 P/FCF: 6.65.
5. Staples, Inc. (SPLS, Earnings, Analysts, Financials): Operates as an office products company. Market cap at $7.81B, most recent closing price at $11.44.
Dividend yield: 3.85%. Current ratio: 1.56. PEG: .89 P/FCF: 8.68.
6. Ternium S.A. (TX, Earnings, Analysts, Financials): Engages in manufacturing and processing a range of flat and long steel products for construction, home appliances, capital goods, container, food, energy, and automotive industries. Market cap at $4.15B, most recent closing price at $20.70.
Dividend yield: 3.62%. Current ratio: 1.87. PEG: .94 P/FCF: 14.3.
Written by Nick Sousa. Screening data sourced from Finviz.
Analyze These Ideas: Getting Started
- Read descriptions for all companies mentioned
- Access a performance overview for all stocks in the list
- Compare analyst ratings for the companies mentioned
- Compare analyst ratings to annual returns for stocks mentioned
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