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5 Beaten Up, Recognizable Names With High Dividend Yields

Mar. 04, 2020 10:30 AM ETDD, HBB, HRB, PARA, XOM6 Comments
Brian Harper, CFA profile picture
Brian Harper, CFA


  • Value has dramatically underperformed growth both recently and over 3 and 5 year periods.
  • The recent market swoon has pushed many value names to 52 week lows.
  • High, sustainable dividend yields can be had on these names.

In an environment starved for yield, recent market action as well as the last few years of market dynamics has revealed a number of solid dividend plays.

The primary dynamic is the dramatic underperformance of value versus growth so far this year, as well as the last 3 and 5 years:

Russell 1000 Value vs Growth YTDRussell 1000 value vs growth 3 yearRussell 1000 value vs growth 5 year

Many are proclaiming the death of value. That said, valuation differences between value and growth are reaching levels not seen since the late 1990s, and we believe it's more a question of "when" than "if" value has its moment in the sun.

Below are five income ideas: an equal weighted portfolio of the five would throw off a dividend yield of 4.4% versus 0.99% on the 10-year Treasury, & 1.85% on the S&P 500.

H&R Block, 5.2% yield

H&R Block 1 year chartH&R Block sits near 52 week lows. The company earned $1.98 on a trailing twelve month basis, putting its P/E at 10.6x. HRB is a perennial name on the "magic formula" list given their high ROIC and asset light business.

Exxon Mobil, 6.8% yield

Exxon Mobil 1 year chartExxon Mobil stock is down 40% in the last year, along with an energy sector which is seemingly the most out of favor industry in the market. The stock trades at a 15.3x P/E to trailing twelve month earnings. Exxon earned nearly $10 in 2012 when energy prices were higher. Exxon claims to have replaced 313% of their reserves in 2018, and to have 17 years of reserves as of 2019.

Hamilton Beach, 3.1% yield

HBB chart since spin-offA spin-off from NAACO industries in late 2017, HBB stock has performed horribly since. HBB curates and sells low and mid priced consumer appliances such as blenders, coffee makers, air fryers, and others. HBB had a money-losing retail operation, Kitchen Collection, which they shut down in late 2019 after years of attempting to

This article was written by

Brian Harper, CFA profile picture
Portfolio Manager and analyst focused on value, special situations, and event driven investments. Like to look in dark corners of the U.S. market. No profit is too small if the IRR is obscene.Based in Boulder, CO.

Analyst’s Disclosure: I am/we are long DD, HRB, XOM, HBB, VIAC. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (6)

Thoughts on MO?
Brian Harper, CFA profile picture
Bought MO recently, like it. If it was any other business besides tobacco, the financials are so compelling, it would be trading at least 60% higher.
Exxon Mobil and ViacomCBS are steals at their present valuations.
Strategic Investor profile picture
good article.
kingRIG2.0 profile picture
I like XOM at this entry point
Me XMan profile picture
Started buying in $49's.
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