6 Worthy Dividend Stocks Down 10% Or More

Written by Timothy J. McIntosh

 

 

A dividend stock investor would naturally assume that with the stock market so strong during the past three months that it would be difficult to find solid paying dividend stocks at reasonable prices. However, in perusing through the list of our top ranked dividend stocks, several candidates emerge as good value even as the Dow Jones Industrial Average is hitting all-time price highs. The fact is that there are still a bountiful amount of dividend gems to be ferreted out by smart investors.

I ran our Top 100 Dividend Stock list through Yahoo Finance and looked for those stocks that were down 10% in the past three months with dividend yields over 2%. The stock list primarily comes from the utility, healthcare, and consumer staples sectors. Each company’s stock price has suffered as more economically sensitive sectors have taken off including financial, industrial, and energy stocks.

Here is an examination of the 6 outstanding dividend stocks that should be on your radar screen at discounted prices:

Company 3 Month Performance
   
American Electric Power Co (AEP) -10.7
Amgen (AMGN) -16.2
Colgate-Palmolive (CG) -10.5
CVS Health Corp (CVS) -24.9
GlaxoSmithKline PLC ADR (GSK) -13.2
Public Storage (PSA) -15.1

A Diverse Utility Company & High Yield; American Electric Power (AEP)

American Electric Power is one of the largest regulated utilities in the United States, providing services to over 5 million retail customers across 11 states. Because it operates across such a wide variety of regions, its revenue and dividend payouts are more protected than many other large utility companies.

The firm released results on November 1st [as follows]: 

  • The utility firm reported Q3 2016 earnings of $1.30 per share, comfortably beating the average analyst estimate of $1.21 per share.
  • American Electric Power also revised its 2016 earnings guidance. The firm now expects earnings for the next year to be in a range of $3.75–$3.85, compared to earlier estimates of $3.60– $3.80 per share.
  • The company also did well on the top line as revenues came in at $4.7 billion versus $4.61 billion that analysts expected.
  • American Electric Power’s (AEP) dividend was increased by a healthy 5% this year, one of the higher increases within the utility sector in 2016.
  • The firm also maintains a 3 year dividend growth rate of 5.2% and has paid out dividends consecutively for the past 45 years.
  • The stock also maintains a very low beta at 0.65, offering dividend investors low volatility. 
  • A cash dividend payment of $0.59 per share is scheduled to be paid on December 09, 2016 to shareholders. This is up from the prior year rate of $0.56 per share.
  • The overall yield is 3.83%, in line with other utility companies, but well above that of the S&P 500.

Great Pipeline & Cheap Valuation; Amgen (AMGN)

Amgen is a leader in biotechnology with premier products such as Epogen and Aranesp, Embrel, and Neupogen.  Amgen’s acquisition of Onyx bolsters the firm’s therapeutic oncology portfolio with Nexavar and Kyprolis. Amgen’s pipeline hadn’t been productive since the launch of Prolia/Xgeva, but several launches in 2015 as well as innovative earlier-stage programs have made the biotechnology firm a more diversified and productive research company. Amgen’s newest drugs and its burgeoning pipeline will be key to generating solid future revenue growth. This includes several new drugs in the stable such as Xgeva, Prolia, Krprolis (from Onyx merger), and migraine drug Erenumab. Last week Amgen reported strong phase 3 results for Erenumab in patients with episodic migraines and will most likely be first to market. 

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Chee Hin Teh 4 years ago Member's comment

Thanks for sharing sir and merry christmas in advance