6 High Dividend Stocks With Low P/E Ratios

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 |  Includes: AEP, APU, CIM, COP, LINEQ, NGG
by: Hawkinvest
The market has been dropping daily for several days in a row. This is causing many investors to worry, but certain stocks have performed very well and should continue to do so even if markets remain weak.
The stocks that can let you sleep at night are the ones that will pay you solid dividends. The turmoil in the markets has been (in part) due to concerns that the economy is slowing down and that has caused interest rates to drop to even lower levels.
With interest rates at very low levels, more investors will turn to stocks that pay dividends that are higher than what they could earn in a bank account, money market, or even bonds. Here are a handful of stocks that are likely to outperform most other stocks because the price to earnings ratio is low and the dividend yield is high:
American Electric Power (NYSE:AEP) is a major utility company and generates electricity derived from coal, natural gas, nuclear, and hydroelectric energy. American Electric has operations primarily in Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia, and West Virginia. This stock looks like a good value on any dips for long term investors.

Here are some key points for AEP:
  • Current share price: $37.12
  • The 52 week range is $33.47 to $38.99
  • Earnings estimates for 2011: $3.13 per share
  • Earnings estimates for 2012: $3.23 per share
  • P/E Ratio: about 12
  • Annual dividend: $1.84 per share which yields 5%
  • Book value: $28.59 per share
Chimera Investment Corporation (NYSE:CIM) is a real estate investment trust (REIT) that invests in residential mortgage-backed securities, and both commercial and residential mortgage loans. With a 16.9% yield and a share price below book value, this looks like a great buying opportunity.

Here are some key points for CIM:
  • Current share price: $3.13
  • The 52 week range is $3.11 to $4.36
  • Earnings estimates for 2011: 60 cents per share
  • Earnings estimates for 2012: 59 cents per share
  • P/E Ratio: about 5
  • Annual dividend: 52 cents per share which yields 16.9%
  • Book value: $3.45 per share
Linn Energy LLC (LINE) is an independent oil and natural gas company and has interests in properties located in Oklahoma, Kansas, Louisiana, Illinois, Michigan, California, Texas and New Mexico. This company has a solid history of paying dividends and just days ago they raised the payout by 5%. Read more about their dividend increase and payout history here. This stock looks like a solid buy on any dips.

Here are some key points for LINE:
  • Current share price: $39.35
  • The 52 week range is $27.17 to $41.13
  • Earnings estimates for 2011: $5.02 per share
  • Earnings estimates for 2012: $5.67 per share
  • P/E Ratio: about 8
  • Annual dividend: $2.64 per share which yields 6.9%
  • Book value: $16.23 per share

ConocoPhillips (NYSE:COP) is one of the largest integrated oil and gas companies. This company is involved in exploration, production, processing, and transportation of various energy products and fuels. The company has extensive oil and gas reserves which should increase in value as energy prices rise. Chances are dividends will also grow with earnings and offer investors a hedge against inflation.

Here are some key points for COP:
  • Current share price: $70.63
  • The 52 week range is $52 to $81.80
  • Earnings estimates for 2011: $8.19 per share
  • Earnings estimates for 2012: $8.87 per share
  • P/E Ratio: about 9
  • Annual dividend: $2.64 per share which yields 3.7%

Amerigas Partners, LP. (NYSE:APU) is a leading distributor of propane gas in the United States. This company distributes propane gas to about 1.3 million residential, commercial and other customers through a nationwide network of distribution points. When energy prices rise it can lead to higher profits for companies like Amerigas. Demand for propane fuel is likely to increase over time, especially if the economy recovers.

Here are some key points for APU:
  • Current share price: $43.82
  • The 52 week range is $41.60 to $51.50
  • Earnings estimates for 2011: $2.97 per share
  • Earnings estimates for 2012: $3.03 per share
  • P/E Ratio: about 13
  • Annual dividend: $2.96 per share which yields 6.9%
National Grid Transco (NYSE:NGG) operates an electricity transmission network in England, Scotland, Wales, and the Eastern United States. They also operate a gas national transmission system in Great Britain, and storage facilities for liquefied natural gas amongst other things. This company pays a very generous dividend and can raise prices as inflation rises in the future.

Here are some key points for NGG:
  • Current share price: $48.97
  • The 52 week range is $37.65 to $52.18
  • Earnings estimates for 2011: $4.07 per share
  • Earnings estimates for 2012: $4.51 per share
  • P/E Ratio: about 12
  • Annual dividend: $3.80 per share which yields 7.9%
Data is sourced from Yahoo Finance.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Disclaimer: No guarantees or representations are made. Hawkinvest is not a registered investment advisor and does not provide specific investment advice. The information is for informational purposes only. You should always consult a financial advisor.