3 Absurdly Cheap Stocks That Pay High Dividends

Want a good income-producing investment to add to your portfolio? There are many high-yielding stocks you can buy right now at attractive discounts. And in addition to generating a lot of dividend income for your portfolio, these investments also have the potential to produce significant gains for you in the long run.

Three absurdly cheap dividend stocks that are trading at modest multiples of their expected earnings today are Merck (NYSE: MRK), Gilead Sciences (NASDAQ: GILD), and Novartis (NYSE: NVS). If you're looking for stocks to buy and hold for years, here's why these can be excellent options to consider.

Pharmaceutical titan Merck pays investors a dividend that yields 2.8% -- more than double the S 500 average of 1.3%. And based on analyst expectations, it's also incredibly cheap, trading at a forward price-to-earnings multiple (P/E) of less than 11.

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Source Fool.com