Three Widely Held Stocks Yielding At Least 3.5% And Trading At Less Than 17 Times Earnings

As an income-driven investor who enjoys the idea of “buying on the dip”, last week’s broader market losses couldn’t have created a better opportunity. In the course of the last week, not only did we see the Dow Jones Industrial Average (DIA), the NASDAQ (QQQ) and the S&P 500 (SPY) all fall by a considerable margin, we also saw a number of attractive income-based opportunities present themselves in a number of widely-held stocks. As a result of last week’s market behavior, I wanted to highlight three specific names that are now trading at-or-near 52-week lows and yield at least 3.5%.

#1 - Ford Motor Company (F) – Shares of Ford closed Friday at $13.79, which is the lowest point in which they have closed in over a year. The stock has dropped 9.22% on a year to date basis and I believe the stock is currently oversold given the fact its P/E Ratio (8.46) and Dividend Yield (3.63%) are very attractive from an income perspective. With that said, I also feel the stock offers great value for long-term investors and increased exports of both its F-150 and Edge models should boost earnings over the next 12-18 months.

#2 – General Electric (GE) – Shares of GE closed Friday at $24.27, which is just slightly above the company’s 52-week low of $23.03. The stock has dropped 11.20% on a year to date basis and I strongly believe that shares are currently oversold given the fact its P/E Ratio (16.62) and Dividend Yield (3.63%) are attractive from an income-related perspective. With that said, I also feel the stock offers great value for long-term investors and increased sales in its data business (which have the potential to exceed $4 billion by 2017) should boost earnings over the next few years.

#3 – McDonald’s (MCD) – Shares of MCD closed Friday at $92.30, which is just slightly above the company’s 52-week low of $89.93. The stock has dropped 2.45% on a year to date basis and I strongly believe that shares are currently oversold, given the fact its P/E Ratio (16.72) and Dividend Yield (3.68%) are both very attractive from an income-related perspective. With that said, I also feel the stock offers great value for long-term investors and increased sales in both the US and abroad should boost earnings over the next 12-24 months.

Conclusion

For those of you who may be considering a position in any of the three names I’ve mentioned above, there’s a very good chance the broader markets will see a positive uptrend over the next few weeks and the window of opportunity to pick up shares at their current levels may be closing fairly rapidly.