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While many investors are chasing high risk opportunities, it still makes sense to keep investing in value stocks that pay dividends. These well known, and not so well known companies are trading below their stated book values. In general, these names offer earnings growth, reasonable PE ratios and appear to be undervalued. With markets remaining volatile, it makes sense to stay focused on companies that are trading at undervalued levels. If we see a market correction, I expect that these book value stock bargains will outperform. Here are the companies:
Barclays PLC (BCS) shares are trading at $19.16. Barclays is a leading banking and financial services company, based in the United Kingdom. The 50 day moving average is $19.60 and the 200 day moving average is $18.74. The 52 week range for these shares is $15.38 to $22.70. Earnings estimates for BCS are about $2.40 per share for next year, so the PE ratio is about 8. BCS pays a dividend of 65 cents per share, which is equivalent to a 3.3% yield. The book value is stated at $28.15.
Why Barclays could be an attractive investment: These shares are trading at a low PE ratio and earnings are expected to grow. Add a solid dividend and a share price that's significantly below book value. Barclays looks like a low risk investment at these levels. The company reported earnings that disappointed some investors, and the stock was down yesterday. This could be a chance to pick up cheap shares over the next few days on further declines.
Ashford Hospitality Trust (AHT) is trading around $12.39. Ashford is a real estate investment trust (REIT) company, based in Texas. These shares have traded in a range between $6 to $12.69 in the last 52 weeks. The 50 day moving average is $10.67 and the 200 day moving average is $9.69. AHT is estimated to earn about $2.02 per share in 2011 and $2.17 for 2012. The book value is stated at $13.84.
Why Ashford could be an attractive investment: I first started writing about this stock when it was at $10.68. Because these share have had a big run lately, I would wait for pullbacks. The dividend payout is 40 cents per share which is equivalent to a 3.5% yield. This REIT focuses on hotels and with room rates and occupancy levels rising, Ashford should benefit from this trend. The dividend is well below the earnings estimates, so it's more likely that Ashford will be able to raise the dividend in the future.
Allstate (ALL) shares are trading at $31.77. Allstate is a leading insurance company based in Illinois. The 50 day moving average is $31.47 and the 200 day moving average is $30.42. Earnings estimates for ALL are about $3.39 per share in 2011 and $3.78 for 2012 so the PE ratio is about 9. ALL pays a dividend of 84 cents per share, which is equivalent to a 2.6% yield. The book value is stated at $35.68.
Why Allstate could be an attractive investment: These shares are trading at a low PE ratio and earnings are expected to grow. Add a solid dividend and a share price that's about 10% below book value. Allstate looks like a low risk investment, and they just reported a very solid quarter which beat expectations, you can read about that here.
Books-A-Million, Inc., (BAMM) shares are trading at $4.44. BAMM is a leading book retailing company. The 50 day moving average is $4.88 and the 200 day moving average is $5.68. BAMM pays a dividend of 20 cents per share, which is equivalent to a yield of 4.8%.
Why Books-A-Million could be an attractive investment: BAMM reported earnings that disappointed investors: For the fiscal year ended January 29, 2011, BAMM reported net income of $8.9 million, or $0.57 per diluted share, compared with net income of $13.8 million, or $0.88 per diluted share, for the prior fiscal year. The book value is stated at $7.15, and BAMM remains profitable, with a strong balance sheet.
Speedway Motorsports, Inc. (TRK) shares are trading at $15.59. Speedway operates racetracks and is based in North Carolina. The 50 day moving average is $15.08 and the 200 day moving average is $14.89. The 52 week range for these shares is $12.80 to $17.23. Earnings estimates for TRK are about $1.05 per share for 2011 and $1.17 next year. TRK pays a dividend of 40 cents per share, which is equivalent to a 2.6% yield. The book value is stated at $20.81.
Why Speedway could be an attractive investment: These shares are trading at a reasonable PE ratio and earnings are expected to grow. Add a solid dividend and a share price that's significantly below book value and these shares look attractive on dips. With the economy generally improving this company could see revenues rise from increased attendance. This is a fun company to own stock in, check out their website and race tracks here.
The data is sourced from Yahoo Finance. The information and data is believed to be accurate, but no guarantees or representations are made. Rougemont is not a registered investment advisor and does not provide specific investment advice. The information contained herein is for informational purposes.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in BCS over the next 72 hours.
Source: 5 Solid Dividend Stocks Trading Below Book Value