If you're interested in dividend ideas, the following list might be of interest to you.
To compile this list, we look for stocks with the following characteristics:
- Market cap > $300M
- Dividend yield > 4%
- Undervalued vs. analysts’ target price (used as a proxy for fair value), with upside between 10%-40%
Click on all images to expand:
Although this is a very basic way to find undervalued companies, it can be a very valuable starting point for your own analysis.
Which of these stocks do you want to add to your watch list?
1. World Wrestling Entertainment Inc. (WWE): Entertainment Industry. Market cap of $837.51M. Dividend yield at 12.73%. According to analysts' estimates this stock has a 40.0% upside, when comparing the current price $11.25 vs. their target price of $15.75. The stock is a short squeeze candidate, with a short float at 12.42% (equivalent to 7.66 days of average volume).
2. Southern Copper Corp. (SCCO): Copper Industry. Market cap of $30.49B. Dividend yield at 5.1%. According to analysts' estimates this stock has a 29.88% upside, when comparing the current price $36.45 vs. their target price of $47.34. The stock is currently stuck in a downtrend, trading -8.37% below its SMA20, -11.83% below its SMA50, and -6.04% below its SMA200. It's been a rough couple of days for the stock, losing 8.31% over the last week.
3. NTELOS Holdings Corp. (NTLS): Wireless Communications Industry. Market cap of $772.35M. Dividend yield at 6.1%. According to analysts' estimates this stock has a 26.65% upside, when comparing the current price $18.46 vs. their target price of $23.38. The stock has lost 1.34% over the last year.
4. Safe Bulkers, Inc. (SB): Shipping Industry. Market cap of $546.80M. Dividend yield at 7.23%. According to analysts' estimates this stock has a 21.79% upside, when comparing the current price $8.26 vs. their target price of $10.06. It's been a rough couple of days for the stock, losing 12.35% over the last week.
5. Reed Elsevier NV (ENL): Publishing Industry. Market cap of $9.60B. Dividend yield at 4.28%. According to analysts' estimates this stock has a 18.61% upside, when comparing the current price $26.22 vs. their target price of $31.1. Relatively low correlation to the market (beta = 0.7), which may be appealing to risk averse investors. The stock has had a good month, gaining 10.15%.
6. Redwood Trust Inc. (RWT): REIT Industry. Market cap of $1.20B. Dividend yield at 6.51%. According to analysts' estimates this stock has a 18.36% upside, when comparing the current price $15.09 vs. their target price of $17.86. The stock is a short squeeze candidate, with a short float at 6.53% (equivalent to 9.63 days of average volume). The stock has gained 4.85% over the last year.
7. Shaw Communications, Inc. (SJR): CATV Systems Industry. Market cap of $8.75B. Dividend yield at 4.64%. According to analysts' estimates this stock has a 17.98% upside, when comparing the current price $20.02 vs. their target price of $23.62. It's been a rough couple of days for the stock, losing 5.8% over the last week.
8. Novartis AG (NVS): Drug Manufacturer. Market cap of $127.55B. Dividend yield at 4.24%. According to analysts' estimates this stock has a 17.14% upside, when comparing the current price $55.94 vs. their target price of $65.53. Relatively low correlation to the market (beta = 0.55), which may be appealing to risk averse investors. The stock has gained 8.89% over the last year.
9. Dynex Capital Inc. (DX): Mortgage Investment Industry. Market cap of $393.84M. Dividend yield at 11.04%. According to analysts' estimates this stock has a 16.13% upside, when comparing the current price $9.61 vs. their target price of $11.16. The stock has gained 19.12% over the last year.
10. Telecom Argentina S A (TEO): Diversified Communication Services Industry. Market cap of $4.58B. Dividend yield at 5.86%. According to analysts' estimates this stock has a 14.87% upside, when comparing the current price $23.07 vs. their target price of $26.5. The stock has gained 24.16% over the last year.
11. Huaneng Power International Inc. (HNP): Electric Utilities Industry. Market cap of $7.09B. Dividend yield at 5.18%. According to analysts' estimates this stock has a 14.82% upside, when comparing the current price $23.69 vs. their target price of $27.2. Relatively low correlation to the market (beta = 0.66), which may be appealing to risk averse investors. The stock has lost 0.68% over the last year.
12. Vodafone Group plc (VOD): Wireless Communications Industry. Market cap of $152.16B. Dividend yield at 4.59%. According to analysts' estimates this stock has a 14.44% upside, when comparing the current price $29.37 vs. their target price of $33.61. The stock has gained 31.05% over the last year.
13. Transocean Ltd. (RIG): Oil & Gas Drilling & Exploration Industry. Market cap of $24.89B. Dividend yield at 4.05%. According to analysts' estimates this stock has a 14.3% upside, when comparing the current price $75.99 vs. their target price of $86.86. After a solid performance over the last year, RIG has pulled back during recent sessions. The stock is -4.38% below its SMA20 and -5.48% below its SMA50, but remains 12.9% above its SMA200. The stock has lost 10.32% over the last year.
14. Ramco-Gershenson Properties Trust (RPT): REIT. Market cap of $471.29M. Dividend yield at 5.28%. According to analysts' estimates this stock has a 12.72% upside, when comparing the current price $12.42 vs. their target price of $14.0. The stock has gained 6.55% over the last year.
15. Merck & Co. Inc. (MRK): Drug Manufacturer. Market cap of $104.39B. Dividend yield at 4.49%. According to analysts' estimates this stock has a 12.06% upside, when comparing the current price $34.65 vs. their target price of $38.83. The stock has lost 0.94% over the last year.
*All data sourced from Finviz.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
