5 Cheap Dividend Stocks For The Next Decade

Generally it is a good idea to overweight dividend stocks in low interest rate environments. Currently Treasury bonds are unbelievably expensive and have paltry yields. Somebody has to suffer huge losses when investors start demanding higher interest rates. Everybody thinks the loser is going to be the Federal Reserve. We think individual investors should focus on cheap, safe dividend stocks to achieve higher returns by assuming little risk. This article will review five cheap dividend stocks that pay solid dividends and trade at attractive earnings multiples. I have one of these stocks in my portfolio and I am looking to buy another one.

BP plc (ADR) (NYSE:BP)

BP Plc (BP): BP had its share of troubles during the past 18 months. Currently it has a market cap of $144 billion with a price to earnings ratio of 7.3. For the year, shares of BP have gone up by 4%. It directly competes with other integrated global oil companies like Exxon (XOM), ConocoPhilips (COP), Total S.A. (TOT) and Chevron Corp (CVX). Most of these stocks track the performance of oil prices. Investors were concerned that oil prices would decline on fears of a global recession.

At the current price of $45, BP is trading at 6.6 times next year’s earnings. It is selling at the very bottom of its five-year valuation range. It also carries a dividend yield of 3.9%. Its earnings are expected to grow at a 4% rate. In contrast, CVX trades at 7.9 times forward earnings and has a 2.9% dividend yield. However CVX is expected to grow faster than BP.

Read the rest of the article here.

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!