10 Oversold, Large Cap Dividend Stocks Offering Value and Profitability

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 |  Includes: ASML, AZN, CLF, CVX, FCX, GLW, LLY, MSFT, RIO, VALE
by: Follow My Alpha

With today's market volatility, every sector and industry has been hit in one form or another. That's why dividend stocks often help dull the sting of market swings. Still, with the way things are going, dividends coming from large caps seem like a more prudent idea given their size.

The PE ratio illustrates how much investors are willing to pay for a firm's earnings. The lower the number, the more "value" an investor should technically be able to find with the company. Now that isn't always the case of course, but a low PE ratio helps narrow the list of stocks that are trading at more favorable prices relative to earnings.

We ran a screen for large cap companies that were paying a dividend. Next, we decided to screen for companies with a low PE Ratio (X<10). Then from this even smaller pool we screened for companies that also had been able to generate solid return on its assets (ROA>=10) in these tough economic times.

The list is ranked from lowest to highest PE Ratio. As usual, short interest data is as of July 15.

Vale S.A. (VALE)

Sector

Basic Materials

Industry

Industrial Metals & Minerals

Market Cap

$ 133,901M

Beta

1.49

Analyst Sentiment

15/23 – List Buy/ Outperform (Bullish)

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The company has operations worldwide that focus on exporting iron ore and pellets. VALE has a price/earnings ratio is 3.44. The firm has a dividend yield of 0.83 and a return on assets of 13.37%.

Corning (GLW)

Sector

Technology

Industry

Electronic Components

Market Cap

$ 20,739M

Beta

1.43

Analyst Sentiment

14/21 – List Buy/ Outperform (Bullish)

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The company manufactures ceramics and specialty glass that is used in a variety of different industries. The company's price/earnings ratio is 6.78. The firm has a dividend yield of 1.44% and a return on assets of 13.77%. The short interest for the firm is 1.30%.

Cliffs Natural Resources Inc. (CLF)

Sector

Basic Materials

Industry

Steel

Market Cap

$ 10,396M

Beta

1.92

Analyst Sentiment

List Buy/ Outperform (Bullish)

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The company produces iron pellets and sells them in Canada and the US. CLF's price/earnings ratio is 6.69%. The firm has a dividend yield of 0.95% and a return on assets of 13.11%. The short interest for the firm is 5.50%.

ASML Holding NV (ASML)

Sector

Technology

Industry

Semiconductor Equipment & Materials

Market Cap

$ 14,189M

Beta

1.50

Analyst Sentiment

3/5 – List Buy/ Outperform (Bullish)

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The company produces integrated circuits and lithography systems. ASML's price/earnings ratio is 7.12. The firm has a dividend yield of 1.43% and a return on assets of 16.5%. The short interest for the firm is 0.50%.

AstraZeneca PLC (AZN)

Sector

Healthcare

Industry

Drug Manufacturers - Major

Market Cap

$ 55,952M

Beta

0.61

Analyst Sentiment

2/7 – List Hold/Neutral (Neutral)

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The company has develop and sells drugs in the arena of cancer, infection, cardiovascular, and more. AZN's price/earnings ratio is 7.62. The firm has a dividend yield of 6.13% and a return on assets of 14.35%.

Freeport-McMoRan Copper & Gold (FCX)

Sector

Basic Materials

Industry

Copper

Market Cap

$ 41,280M

Beta

2.74

Analyst Sentiment

14/19 – List Buy/Outperform (Bullish)

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The company mines and produces silver, copper, and gold. FCX's a price/earnings ratio is 7.81. The firm has a dividend yield of 1.96% and a return on assets of 14.54%. The short interest for the firm is 2.10%.

Rio Tinto PLC (RIO)

Sector

Basic Materials

Industry

Industrial Metals & Minerals

Market Cap

$ 108,475M

Beta

1.66

Analyst Sentiment

6/6 – LIST Buy / Outperform (Bullish)

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The company mines iron ore and other minerals around the world. RIO's price/earnings ratio is 7.99. The firm has a dividend yield of 1.96% and a return on assets of 12.74%.

Chevron (CVX)

Sector

Energy

Industry

Oil & Gas Integrated

Market Cap

$ 181,410M

Beta

0.73

Analyst Sentiment

13/21 – LIST Hold / Neutral (Neutral)

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The company is one of the largest integrated oil companies in the world. CVX's price/earnings ratio is 8.22. The firm has a dividend yield of 3.13% and a return on assets of 10.3%. The short interest for the firm is 1.30%.

Eli Lilly and Company (LLY)

Sector

Healthcare

Industry

Drug Manufacturers - Major

Market Cap

$ 39,929M

Beta

1.60

Analyst Sentiment

12/24 – List Hold / Neutral (Neutral)

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The company develops and sells products to treat and prevent human diseases. LLY has a price/earnings ratio of 8.29. The firm has a dividend yield of 3.13% and a return on assets of 10.3%.

Microsoft Corporation (MSFT)

Sector

Technology

Industry

Software - Infrastructure

Market Cap

$ 202,754M

Beta

1.61

Analyst Sentiment

24/35 – List Buy / Outperform (Bullish)

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The company is an industry leader in the software space and the original developer of Windows operating system. MSFT has a price/earnings ratio of 9.36. The firm has a dividend yield of 2.42% and a return on assets of 18.14%.

We hope this list helps as investors due their own due diligence on large cap companies that are offering exceptional potential from multiple fronts.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.