Three Dividend-Rich Stocks Offering Attractive Value at Discounted Rates
Three Dividend-Rich Stocks Offering Attractive Value at Discounted Rates
Investing in dividend stocks trading at reduced prices can be a smart move, especially if the dividends are sustainable. You're essentially securing a higher yield than average, and there's potential for the share price to climb as valuations recover. Here are three such stocks for your consideration:
- AstraZeneca (AZN)
Despite its diverse, profitable portfolio and long-term growth potential, AstraZeneca has been discounted by investors. Its stock price is nearing its 52-week low, and the forward price-to-earnings (P/E) multiple is below average for the Health Care Select Sector SPDR Fund. However, this presents an opportunity to invest in a solid growth stock with a dividend yield of 2.2%, significantly higher than the S&P 500 average. The company's robust pipeline of around 200 drug projects in various therapeutic areas makes AstraZeneca a potential long-term winner.
- ExxonMobil (XOM)
ExxonMobil's dividend yield of 3.7% is attractive, especially considering its history of annual dividend increases for 42 straight years. Over the trailing 12 months, the oil and gas giant has generated significant profits, and its stock price is trading at a reasonable forward P/E multiple. Following its acquisition of Pioneer Natural Resources, ExxonMobil's operations have expanded, making it an appealing addition to diversified portfolios.
- Toronto-Dominion Bank (TD)
Canadian-based Toronto-Dominion Bank has a dividend yield of 5.2%, a tempting offer for income-focused investors. The stock has faced challenges, such as a $3 billion charge related to money laundering violations, but this could present an opportunity to buy into a top bank stock at a low price. Over the past year, the company has reported strong revenue growth and maintained its commitment to dividend payments.
In conclusion, these three stocks, AstraZeneca, ExxonMobil, and Toronto-Dominion Bank, offer attractive dividends, the potential for long-term growth, and are currently trading at discounted prices. With proper due diligence, they could be valuable additions to your investment portfolio.
Investing in these discounted stocks not only provides a higher yield than average but also allows for potential capital gains as their prices recover. For instance, if you're considering Toronto-Dominion Bank, its current dividend yield of 5.2% could be an attractive income source, especially in a low-interest-rate environment.
Furthermore, as a responsible investor, you might consider the environmental, social, and governance (ESG) aspects of your investments. Many financially sound companies, like AstraZeneca, have robust ESG policies, indicating they are mindful of their social impact while delivering strong financial returns.