4 Cheap Stocks Earning Money And Paying Dividends

&l;p&g;&l;img class=&q;dam-image shutterstock size-large wp-image-1060458812&q; src=&q;https://specials-images.forbesimg.com/dam/imageserve/1060458812/960×0.jpg?fit=scale&q; data-height=&q;640&q; data-width=&q;960&q;&g; Shutterstock

If the price/earnings ratio of the stock is significantly below the p/e of the market as a whole — and if it&s;s&a;nbsp; trading for less than its book value, some analysts place it on the list of &q;cheap stocks.&q; Using the &l;a href=&q;https://finviz.com/&q; target=&q;_blank&q;&g;Financial Visualization website&l;/a&g;, I screened to see if any such stocks existed right now and I found these few. Just to be sure, I screened to see if they had steady earnings records, held reasonable debt levels and paid regular dividends. Here&s;s 4 of those that made it through the initial screens:

&l;strong&g;Entercom Communications&l;/strong&g; — they own and operate hundreds of radio stations. Audio provider. Media company. Whatever they&s;re calling it these days. With a p/e of 4 and now trading at about half its book value, this one definitely makes the cheap stock list.

&l;img class=&q;size-medium wp-image-2923&q; src=&q;http://blogs-images.forbes.com/johnnavin/files/2018/04/etm-weekly-4-3-18-big-300×225.jpg?width=960&q; alt=&q;&q; data-height=&q;225&q; data-width=&q;300&q;&g; Entercom chart

Entercom&s;s got a 5-year record of profitability and the company made a lot of money last year. They have slightly more long-term debt than equity, a concern. The dividend comes to 3.8%. The short float is 10% — should these short sellers ever be forced to cover, it might be good for the stock. Full disclosure: I used to work with COO Weezie Kramer when we were both kids at WKQQ in Lexington, Kentucky, but I haven&s;t talked to her in about 30 years.

&l;strong&g;LG Display Company&l;/strong&g; — this South Korean technology/diversified electronics company is New York Stock Exchange traded and its price/earnings ratio right now is 5. LG is trading at 62% of its book value.

&l;img class=&q;size-medium wp-image-2924&q; src=&q;http://blogs-images.forbes.com/johnnavin/files/2018/04/lpl-4-3-18-weekly-big-300×225.jpg?width=960&q; alt=&q;&q; data-height=&q;225&q; data-width=&q;300&q;&g; LG Display chart

The dividend is 1.86%. The company&s;s levels of debt are low. Earnings have been solid both on a 5-year look and for the last 12 months. In January, Morgan Stanley analysts moved LG from &q;underweight&q; to &q;overweight.&q; The stock traded as high as 17 last summer and now sits at 11.85.

&l;strong&g;SK Telecom Co., Ltd&l;/strong&g; — the technology/wireless communications company based in South Korea trades on the New York Stock Exchange and can be purchased at an 8% discount to its book value.


&l;img class=&q;size-medium wp-image-2925&q; src=&q;http://blogs-images.forbes.com/johnnavin/files/2018/04/skm-weekly-4-3-18-big-300×225.jpg?width=960&q; alt=&q;&q; data-height=&q;225&q; data-width=&q;300&q;&g; SKM chart

The price/earnings ratio is 6.3 and they&s;re paying a 4.05% dividend. Analysts have some concerns about next year&s;s earnings, but the company has a good 5-year record and made money last year. Debt levels are low. The stock has dropped from 29 earlier this year to 24 and change. Note that this is the 2nd Korea-based company showing up on the cheap list, for whatever reason.

&l;strong&g;Teck Resources&l;/strong&g; — with a price/earnings ratio of 7.27 and now trading at just below book value, this Canada-based basic materials/natural resources company makes the list.

&l;img class=&q;size-medium wp-image-2926&q; src=&q;http://blogs-images.forbes.com/johnnavin/files/2018/04/teck-weekly-4-3-18-big-300×225.jpg?width=960&q; alt=&q;&q; data-height=&q;225&q; data-width=&q;300&q;&g; TECK chart.

Teck has been steadily earning money over the past 5 years and pays a .5% dividend. Long-term debt is low and short-term cash exceeds short-term liabilities. The stock moved from 14 last summer&a;nbsp; to 30 in January and has since backed off to 25.42.

None of these are buy recommendations, far from it — this is simply what you might come up with if you began to apply the kind of analysis that Benjamin Graham suggested in his books on the subject. This list is just a starting point to conduct further research into each situation. It&s;s wise to consult with a licensed financial professional before making any investment decision.


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