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Whether a stock is cheap or not has nothing to do with its actual price. There are stocks in the market right now that would be overpriced at one penny and others, like Apple (NASDAQ:AAPL), that are a bargain at $400+. (In the case of Apple, analysts predict the stock could go as high as $700 a share within the next year.) Instead, investors would do better to concentrate on how the stock is priced. Specifically, how a stock is priced relative to its book value (price-to-book ratio, or P/B ratio) and how it is priced relative to its earnings (price-to-earnings ratio, or P/E ratio).

Dividends are another issue. Dividends can be used to offset losses as well as reinforce returns. As such, finding a stock that pays high dividends while offering a low P/B ratio, as well a low P/E ratio usually means a good thing. Using the stock screener at finviz, we identified six stocks that fit this criteria. Specifically, we looked for stocks with high dividends, P/B ratios less than 1.5 and P/E ratios less than 12.

Chimera Investment Corporation (NYSE:CIM) is a diversified real estate investment trust (REIT). It has a market cap of $2.66B and is priced low, with a P/E ratio of 4.98 and a P/B ratio of 0.79. Chimera also pays a high 16.99% dividend yield, with a 110.74% payout ratio. It is trading at $2.59 a share.

MFA Financial, Inc. (NYSE:MFA) is a diversified REIT. It has a market cap of $2.42B and is priced low, with a P/E ratio of 7.37 and a P/B ratio of 0.91. MFA also pays a high 14.75% dividend yield, with a 109.98% payout ratio. It is trading at $6.78 a share.

Annaly Capital Management, Inc. (NYSE:NLY) is a diversified REIT. It has a market cap of $15.59B and is priced low, with a P/E ratio of 8.37 and a P/B ratio of 0.98. Annaly also pays a high 14.19% dividend yield, with a 147.29% payout ratio. It is trading at $16.07 a share.

New York Community Bancorp, Inc. (NYB) is a savings and loans company. It has a market cap of $5.51B and is priced low, with a P/E ratio of 10.86 and a P/B ratio of 0.99. NY Community Bancorp also pays a high 7.94% dividend yield, with a 86.73% payout ratio. It is trading at $12.60 a share.

Ameren Corporation (NYSE:AEE) is a diversified utilities company. It has a market cap of $7.94B and is priced low, with a P/E ratio of 14.50 and a P/B ratio of 0.99. Ameren also pays a high 4.88% dividend yield, with a 68.07% payout ratio. It is trading at $32.76 a share.

Whirlpool Corp. (NYSE:WHR) is an appliance company. It has a market cap of $3.71B and is priced low, with a P/E ratio of 10.69 and a P/B ratio of 0.87. Whirlpool also pays a high 4.12% dividend yield, with a 39.71% payout ratio. It is trading at $48.51 a share. John Paulson's Paulson & Co. had roughly $124.78 million invested in Whirlpool at the end of the third quarter.

Source: 6 Cheap High Dividend Yield Stocks