10 Highly Undervalued, Oversold Stocks Paying Big Dividend Yields

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Includes: INTC, JNS, KWR, LNCR, NHC, NOC, PPG, TRV, TX, WOR
by: Kapitall

Here is a list of dividend stocks that have seen a lot of selling pressure lately, but may be on the cusp of a comeback.

We ran a screen on stocks paying dividend yields above 3% for those that are technically oversold, with RSI(14) below 40. We also screened these stocks for those that appear to be highly undervalued, with lower TTM P/E, TTM P/CF and PEG than their industry peers.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.



We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

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Do you think these stocks will soon turn around? Use this list as a starting point for your own analysis.

List sorted by dividend yield.

1. Intel Corporation (NASDAQ:INTC):
Semiconductor Industry. Market cap of $103.50B. RSI(14) at 39.77. Dividend yield at 4.26%, payout ratio at 29.97%. TTM P/E at 8.92 vs. industry average at 15.14. PEG at 0.80 vs. industry average at 1.05. TTM P/CF at 6.10 vs. industry average at 12.78. It has been a rough couple of days for the stock, losing 5.19% over the last week.

2. Northrop Grumman Corporation (NYSE:NOC): Aerospace/Defense Industry. Market cap of $14.31B. RSI(14) at 37.94. Dividend yield at 3.89%, payout ratio at 29.29%. TTM P/E at 8.06 vs. industry average at 15.01. PEG at 1.02 vs. industry average at 1.30. TTM P/CF at 5.98 vs. industry average at 9.23. The stock is a short squeeze candidate, with a short float at 6.34% (equivalent to 5.36 days of average volume). The stock has performed poorly over the last month, losing 20.95%.

3. Lincare Holdings Inc. (NASDAQ:LNCR): Home Health Care Industry. Market cap of $1.95B. RSI(14) at 30.14. Dividend yield at 3.84%, payout ratio at 31.48%. TTM P/E at 11.02 vs. industry average at 14.39. PEG at 0.70 vs. industry average at 1.06. TTM P/CF at 6.71 vs. industry average at 9.11. The stock is a short squeeze candidate, with a short float at 10.67% (equivalent to 6.45 days of average volume). It has been a rough couple of days for the stock, losing 6.47% over the last week.

4. National Healthcare Corp. (NYSEMKT:NHC): Long-Term Care Facilities Industry. Market cap of $467.04M. RSI(14) at 39.43. Dividend yield at 3.55%, payout ratio at 28.90%. TTM P/E at 8.66 vs. industry average at 14.39. PEG at 0.72 vs. industry average at 1.06. TTM P/CF at 5.10 vs. industry average at 9.11. The stock has performed poorly over the last month, losing 30.5%.

5. The Travelers Companies, Inc. (NYSE:TRV): Property and Casualty Insurance Industry. Market cap of $20.66B. RSI(14) at 35.35. Dividend yield at 3.32%, payout ratio at 28.16%. TTM P/E at 9.68 vs. industry average at 12.16. PEG at 1.11 vs. industry average at 1.63. TTM P/CF at 6.73 vs. industry average at 8.12. It has been a rough couple of days for the stock, losing 5.06% over the last week.

6. Ternium S.A. (NYSE:TX): Steel and Iron Industry. Market cap of $4.66B. RSI(14) at 38.11. Dividend yield at 3.23%, payout ratio at 7.94%. TTM P/E at 7.28 vs. industry average at 12.04. PEG at 0.75 vs. industry average at 1.44. TTM P/CF at 4.44 vs. industry average at 9.91. This is a risky stock that is significantly more volatile than the overall market (beta = 2.25). The stock has performed poorly over the last month, losing 22.62%.

7. PPG Industries Inc. (NYSE:PPG): Specialty Chemicals Industry. Market cap of $11.21B. RSI(14) at 35.11. Dividend yield at 3.20%, payout ratio at 34.59%. TTM P/E at 11.22 vs. industry average at 12.43. PEG at 1.0 vs. industry average at 1.29. TTM P/CF at 7.55 vs. industry average at 10.59. It has been a rough couple of days for the stock, losing 5.4% over the last week.

8. Quaker Chemical Corporation (NYSE:KWR): Specialty Chemicals Industry. Market cap of $386.14M. RSI(14) at 35.31. Dividend yield at 3.19%, payout ratio at 33.59%. TTM P/E at 10.61 vs. industry average at 12.98. PEG at 1.06 vs. industry average at 1.33. TTM P/CF at 7.84 vs. industry average at 10.91. This is a risky stock that is significantly more volatile than the overall market (beta = 2.52). It has been a rough couple of days for the stock, losing 8.34% over the last week.

9. Janus Capital Group, Inc. (NYSE:JNS): Asset Management Industry. Market cap of $1.17B. RSI(14) at 39.14. Dividend yield at 3.18%, payout ratio at 5.22%. TTM P/E at 6.42 vs. industry average at 14.72. PEG at 0.96 vs. industry average at 1.04. TTM P/CF at 5.42 vs. industry average at 8.15. This is a risky stock that is significantly more volatile than the overall market (beta = 2.66). It has been a rough couple of days for the stock, losing 6.95% over the last week.

10. Worthington Industries, Inc. (NYSE:WOR): Steel and Iron Industry. Market cap of $1.17B. RSI(14) at 34.22. Dividend yield at 3.04%, payout ratio at 25.56%. TTM P/E at 10.18 vs. industry average at 12.04. PEG at 0.73 vs. industry average at 1.44. TTM P/CF at 6.60 vs. industry average at 9.91. The stock is a short squeeze candidate, with a short float at 8.89% (equivalent to 5.31 days of average volume). It has been a rough couple of days for the stock, losing 8.84% over the last week.

*Price multiples sourced from Fidelity, all other 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.