The stock market is hitting new highs which means a lot of stocks are also near all-time high prices. When searching for a "good" price, it is it difficult when stock prices keep climbing. So how does an investor find a well-priced stock these days?
While there are many data points to look at when researching a stock, a common indicator for relative price is the P/E ratio. Currently, many stocks have high P/E ratios due to their high prices. Finding a quality company with a low P/E ratio is a hard find but they do exist. For example, Kellogg Company (NYSE:K) touts a P/E of 12.9. That is less than the industry average of 20 and the S&P 500 average of 18.3 according to Morningstar. Also, K's 12.9 P/E is lower than its 5-year average of 16.1.
Looking further at K, it pays a 2.7% dividend with a 5-year average of 3%. While K isn't a dividend aristocrat with consistent annual dividend increases, it has been paying dividends since 1925 according to Kellogg's investor relations website. K's payout ratio is also at a 10-year low at 34%. Additionally, K has relatively low volatility with a .53 beta.
While Kellogg's is well known for its breakfast offerings, it also sells snack foods such as Keebler products, granola bars, cracker chips, fruit snacks, veggie burgers, and Pringles chips. Here's a link to the Kellogg Company Brand Portfolio:
If you're looking for a safe, value, dividend-paying stock, then K may suit your needs.
Disclosure: The author is long K.