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The Complete List of 1343 Cheap Dividend Stocks [Free Download]

Updated on August 29th, 2019 by Bob Ciura We firmly believe that investors looking to generate superior returns over the long-term, without taking excessive risks, should focus on....

Updated on August 29th, 2019 by Bob Ciura

We firmly believe that investors looking to generate superior returns over the long-term, without taking excessive risks, should focus on high-quality dividend growth stocks.

Investors can successfully implement a dividend growth investing strategy by finding dividend stocks that are also trading at attractive valuations.

In this article, we present a method for investors to quickly and effectively screen for cheap dividend stocks with a downloadable list.

You can download a list of cheap dividend stocks (defined as dividend-paying stocks with price-to-earnings ratios below 15) using the link below.

 

The database of cheap dividend stocks available for download above contains the following information for every stock in the spreadsheet:

  • Dividend yield
  • Price-to-earnings ratio
  • Payout ratio
  • Market capitalization
  • Beta

Furthermore, you can see a preview of our cheap dividend stocks in the table below:

Keep reading this page to learn about how to use the cheap dividend stocks list to find investment ideas.

Table of Contents

You can skip to a particular section using the table of contents below:

How To Use The Cheap Dividend Stocks List to Find Investment Ideas

Having an Excel spreadsheet with the names, tickers, and financial information of all public stocks with price-to-earnings ratios below 15 can be tremendously powerful.

This document becomes even more useful when combined with a working knowledge of Microsoft Excel.

With that in mind, this tutorial will demonstrate how to implement two actionable investing screens to our list of cheap dividend stocks.

The first screen that will be implemented is for especially undervalued, high-yield dividend stocks – those with price-to-earnings ratios below 10 and dividend yields above 4%.

Screen 1: Price-to-Earnings Ratios Below 10 and Dividend Yields Above 4%

Step 1: Download the list of cheap dividend stocks by clicking here.

Step 2: Click the filter icon at the top of the price-to-earnings ratio column, as shown below.

Step 3: Change the filter setting to ‘Less Than’ and input 10 into the field beside it. This will filter for cheap dividend stocks with price-to-earnings ratios below 10.

Cheap Dividend Stocks Excel Tutorial 3

Step 4: Close out of the filter window (by clicking the exit button, not by clicking the “Clear Filter” button in the bottom right corner). Next, click the filter icon at the top of the dividend yield column, as shown below.

Cheap Dividend Stocks Excel Tutorial 4

Step 5: Change the filter setting to “Greater Than” and input 0.04 into the field beside it, as shown below. Since dividend yield is expressed as a percentage, this will filter for cheap dividend stocks with dividend yields above 4%.

Cheap Dividend Stocks Excel Tutorial 5

The remaining stocks in this Excel sheet are cheap dividend stocks with price-to-earnings ratios below 10 and dividend yields above 4%.

The next screen that will be demonstrated is for cheap dividend stocks with market capitalizations above $20 billion and dividend yields above 3%.

Screen 2: Market Capitalizations Above $20 Billion, Dividend Yields Above 3%

Step 1: Download the list of cheap dividend stocks by clicking here.

Step 2: Click the filter icon at the top of the market capitalization column, as shown below.

Step 3: Change the filter setting to “Greater Than” and input “20000” into the field beside it. Since market capitalization is measured in millions of dollars, this is equivalent to filtering for cheap dividend stocks with market capitalizations above $20 billion.

Cheap Dividend Stocks Excel Tutorial 7

Step 4: Close out of the filter window (by clicking the exit button, not by clicking the “Clear Filter” button in the bottom right corner). Next, click the filter icon at the top of the dividend yield column, as shown below.

Cheap Dividend Stocks Excel Tutorial 8

Step 5: Change the filter setting to “Greater Than” and input 0.03 into the field beside it. Since dividend yield is measured in percentage points, this is equivalent to filtering for cheap dividend stocks with dividend yields above 3%.

Cheap Dividend Stocks Excel Tutorial 9

The remaining stocks in this spreadsheet are cheap dividend stocks with market capitalizations above $20 billion and dividend yields above 3%.

You now have a fundamental understanding of how to use our cheap dividend stocks list to find investment ideas.

The remainder of this article will describe the benefits in investing in dividend-paying companies at below-average valuation multiples.

Why Buy Cheap Stocks?

There is a significant body of empirical research to suggest that buying stocks with low valuation multiples leads to better returns than buying stocks with high valuation multiples.

This was especially true from 1975-2010, when stocks with low price-to-earnings ratios significantly outperformed stocks with higher price-to-earnings ratios.

As an example of this trend, consider the following research from Brandes Investment Partners, which showed that the lowest decile of price-to-earnings ratio stocks outperformed the highest decile of price-to-earnings ratio stocks by 10.1% per year between 1975 and 2010.

Source: The Case for Value by Brandes Investment Partners

This trend was also seen in international markets. The easiest way to measure the performance of value stocks versus the broader universe is by comparing the performance of the MSCI World Value Index and the MSCI World Growth Index.

These indices are plotted alongside one another below for the time period between January 1975 and January 2018.

Source: Causeway Capital

It is interesting to view this value as a pairwise scatterplot. When considering the data presented in this way, we see that value investing has outperformed growth strategies in a remarkable 71% of all samples.

Source: Causeway Capital

Investing in cheap stocks clearly works. That’s because cheap stocks are, on average, undervalued. Buying $1.00 for $0.50 works out well in the long run – and is the central tenet behind value investing.

Of course, markets typically move in cycles, and more recently value stocks have underperformed the broader market. According to Brandes Investment Partners, in the past 10 years U.S. large-cap value stocks generated 11.2% annualized returns. By contrast, U.S. large-cap growth stocks generated annual returns of 15.3% in the same 10-year period.

This is not entirely surprising, as the past 10 years included an economic recovery in the aftermath of the Great Recession. In times of rapid economic expansion, it is not unusual for growth stocks to outperform, as they are more leveraged to economic growth.

However, market cycles can reverse, and value stocks are currently priced at a discount to growth stocks not seen in over 40 years.

This is especially apparent when it comes to a different valuation metric, the price-to-book ratio. On this basis, value stocks are trading at a discount to growth stocks not seen since 1974.

Source: Brandes

Separately, the strong outperformance of growth stocks has caused a shift in asset mix among institutional investor groups, leaving many relatively under-invested in value stocks.

The overall takeaway is that as the economic cycle matures, and with value stocks offering attractive price-to-earnings ratios and high dividend yields, value could become an attractive strategy once again.

In the next section of this article, we will discuss the merits of investing in dividend stocks and explain why cheap dividend stocks are an especially attractive combination.

Why Buy Dividend Stocks?

The obvious benefit of investing in dividend stocks is they allow you to generate a passive income stream from your investment portfolio.

Importantly, there are other benefits. Dividend stocks have a long history of outperforming the broader stock market.

This is particularly true when you consider dividend stocks stratified by yield. In the below chart, you can see that each quintile of dividend yield stocks has generated long-term outperformance over non-dividend payers.

Source:Dividends: A Review of Historical Returns by Heartland Funds

The outperformance of dividend stocks becomes even more pronounced when you consider the payment histories of these securities. More specifically, dividend growth stocks tend to widely outperform all other classes of dividend stocks.

Source: Rising Dividends Fund, Oppenheimer

Combining value investing and dividend investing to find undervalued dividend stocks is very powerful because it not only combines two time-tested strategies (value and dividends), but it also allows investors to have a higher starting yield for their investment portfolio.

Final Thoughts and Other Investing Resources

Having an Excel document with the names, tickers, and financial information of all cheap dividend stocks with price-to-earnings ratios below 15 can be very useful. However, it may not have fulfilled your needs for investing due diligence.

If you have perused our list of cheap dividend stocks and are still looking for your next investment idea, take heart. Sure Dividend has plenty of other free dividend investing resources available to help. In particular, you might be interested in looking through our lists of dividend stocks ranked by dividend history:

  • The Dividend Aristocrats: S&P 500 dividend stocks with 25+ years of consecutive dividend increases.
  • The Dividend Achievers: dividend stocks with 10+ years of consecutive dividend increases.
  • The Dividend Kings: considered to be the best-of-the-best when it comes to dividend history, the Dividend Kings are a group of dividend stocks with 50+ years of consecutive dividend increases.

Another way to screen the investable universe is by looking for dividend stocks with particular yield or payout characteristics. With that in mind, Sure Dividend maintains the following stock market databases:

Searching within the major stock market indices can also be fruitful. You can download Excel documents of the constituents of each major stock market index below:

Alternatively, you may be interested in searching the stock market by sector. Sector-specific stock market databases are available for download below:


Source suredividend

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