3 Incredibly Cheap Dividend Stocks
Dividend investors looking for opportunities today should start with companies that have strong histories of increasing their dividends. After that, you should look for stocks with historically high yields, which suggests the shares may be trading at attractive prices. Three stocks that pass both of those screens are Hormel Foods (NYSE: HRL), Black Hills Corporation (NYSE: BKH), and Enbridge (NYSE: ENB). Here's a quick look at the businesses of each of these historically cheap dividend stocks.
Hormel Foods is probably best known for making Spam, but it owns a large collection of segment-leading brands. The food maker's 3.5% dividend yield is near the highest levels in the company's history, suggesting that the stock is in the bargain bin. This is not a short-term thing; the company has been struggling for a couple of years. But that hasn't stopped this Dividend King from increasing its dividend, with a streak that is now up to 57 years.
The good news is that none of the problems Hormel faces are likely to be permanent headwinds. For example, it hasn't been as successful as peers in passing on higher costs via price increases. Time should fix that. Its turkey business has been hampered by a difficult avian flu environment, which is also likely to be a temporary problem. China's economic recovery has been slower than expected, another issue that should right itself over time. And the company's Planters brand is dealing with a tough market for nuts, but the business has been outperforming the segment. All told, Hormel is struggling, but it doesn't seem like any of these challenges change the long-term story for this reliable dividend payer.
Source Fool.com
