A high beta dividend share with very low forward P/E's originally published at long-term-investments.blogspot.com. I often hear from others that they want to make quick and fast money. I can understand this wish from some investors. If you don't have enough money for your investing, you need to speculate in order to get a higher amount of money in a very short time.
This is a very dangerous process. I'm a believer in dividend growth and I think that if you safe each month a bit, in the end you will definitely have a high amount of money. The stock market could help you to boost your money with a 5 to 10 percent return.
Speculation is not investing. It's money gambling like casino or poker. Today I would like to introduce you some of the stocks with the highest sentiment on the market. I used the S&P 500 High Beta Index for the stock ideas. The index covers 100 stocks from the broad S&P 500 with the highest sensitivity to market movements over the past 12 months. The beta ratio is the main valuation driver.
Exactly 71 companies from the S&P 500 High Beta Index pay actual a dividend. I wanted to know which of them are really cheap for the time being. Because there are 52 stocks with a low forward P/E, I selected only those high beta stocks with a very low forward price ratio. 15 shares are valuated with a forward P/E of less than 10 and 13 of them are currently recommended to buy. You can find a list of the results below.
Here is the full table with some fundamentals:
Take a closer look at the full list. The average P/E ratio amounts to 17.44 and forward P/E ratio is 8.52. The dividend yield has a value of 2.07 percent. Price to book ratio is 1.61 and price to sales ratio 1.25. The operating margin amounts to 18.41 percent and the beta ratio is 2.04. Stocks from the list have an average debt to equity ratio of 0.61. Below the results are many technology, financials and basic material stocks. These 3 sectors are full of high beta stocks with a very low valuation. But beware; the low valuation can also be an expression for a decreasing income that the market anticipates in the future.
Related Stock Ticker Symbols:
FCX, STX, ESV, LYB, XRX, MET, PRU, BRCM, WDC, JOY, JBL, NE, HIG, LNC, C