2 Dirt-Cheap Dividend Stocks
Even though the S&P 500 is down about 11% over the past 12 months, bargains are still few and far between. For instance, the average price-to-earnings (P/E) ratio of stocks in the S&P 500 is 18. Even more, stocks in the Nasdaq-100 trade at 26 times earnings, on average. But for investors willing to be contrarian and consider some of the stocks that have been beaten down particularly hard, there are some stocks with valuations that may have crossed into bargain territory.
Two stocks that have been hit extremely hard recently are 3M (NYSE: MMM) and Verizon (NYSE: VZ). Indeed, the two stocks' recent underperformance has been so bad that they are now trading at levels lower than where they were trading 10 years ago. Over the last year, specifically, 3M and Verizon stocks are down about 32% and 24%, respectively. Over the last 10 years, they are down 3% and 19%, respectively.
For investors willing to give these unloved stocks a closer look, there are some good reasons to consider investing in them. Their dividends, in particular, make for a good bull case for the stocks.
Source Fool.com
