6 Cheap Large-Cap Dividend Stocks

What are the cheapest large-cap dividend stocks in the market right now? The following is a list of six stocks that are very cheap on an earnings basis and have dividend yields over 2 percent. All of these names is that almost all of them should be familiar to investors as they are engaged in high-quality, proven businesses. The stocks highlighted below have market caps over $10 billion, dividend yields over 2 percent, and trade at trailing and forward P/E ratios of less than 10 and PEG ratios of below 1. The six names featured are also all in positive territory in 2012.

AFLAC Incorporated (NYSE:AFL)

AFLAC Incorporated (NYSE:AFL) – Insurance companies are overly represented on this list and many well-known names remain cheap despite strong performance in 2012. Aflac shares, for example, are up better than 12 percent in 2012 and 34 percent in the last 52-weeks, but the stock remains cheap on an earnings basis. The shares trade at a trailing P/E of 8.88, a forward P/E of 7.08 and a PEG ratio of just 0.72. At current levels, AFL is also yielding around 2.70 percent.

Cummins Inc. (NYSE:CMI) – This industrial bellwether has been volatile in 2012 as investors’ constantly changing perceptions of global growth have been reflected in CMI’s share price. Year-to-date, however, the stock is up a little better than 12 percent, although it is well off its best levels of the year. Cummins appears inexpensive given its high-profile pedigree in the industrial space. The stock trades at a trailing P/E of 9.83, a forward P/E of 9.31 and a PEG ratio of 0.82. At current levels, the shares are also yielding around 2 percent.

Metlife Inc (NYSE:MET) – MetLife is another insurance company that is trading at an attractive valuation. The stock currently has a trailing P/E of 5.35, a forward P/E of 6.31 and a PEG ratio of 0.63. Next year, analysts are projecting that the company will grow its revenues by 6.40 percent. The stock has been a reasonably strong performer year-to-date, rising a little less than 13 percent. MET is not only relatively cheap, but it also is yielding around 2 percent at current levels.

Prudential Financial Inc (NYSE:PRU) – This global insurance and financial services company was hit hard in the wake of the mortgage meltdown, but the stock has been bouncing back in recent years. In 2012, shares have been volatile, but have managed to gain around 15 percent after a sharp rally over the last couple of months. Valuation still looks compelling, although investors remain leery of the financial and insurance sector. The stock trades at a trailing P/E of 8.05, a forward P/E of 7.37 and a PEG ratio of 0.74. The stock is also sporting a healthy 2.50 percent dividend yield.

Seagate Technology PLC (NASDAQ:STX) – This hard-disk maker has had an extremely low valuation for some time, and seems to be a frequent target of buyout rumors. Despite investors’ trepidation to pay a high multiple for the stock, STX has been on fire over the last year, rising 149 percent. In 2012 alone, the stock has climbed around 82 percent. One of the biggest holders of Seagate stock is noted value investor David Einhorn’s Greenlight Capital hedge fund. The stock is currently trading at a trailing P/E of 4.57, a forward P/E of 4.47 and a PEG ratio of 0.14. Seagate also is yielding around 4.30 percent at current levels.

The Western Union Company (NYSE:WU) – Despite a recent run-up in WU’s share price, the company continues to trade at a low valuation. Year-to-date, the stock has risen a little better than 3 percent, but is up around 15 percent over the last 3 months. At current levels, WU is yielding a little more than 2 percent. The stock trades at a trailing P/E of 9.71, a forward P/E of 9.90 and a PEG ratio of 0.96.

This article was originally written by Scott Rubin, and posted on Benzinga.

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
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

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!