Over the past few weeks, I have spent more time focusing on dividend investing. I have been looking at high yielders, average yielders, and some low yielders. Today, I would like to take a look at a few dividend value plays that are becoming buying opportunities. Investors are getting to buy best of breed at a discounted rate.
Nike (N) looks like it has bottomed out in the $75 range. Investors that want to own a piece of the athletic footwear retailer should feel comfortable initiating a position at these levels. It’s a low yield of 1.6% but the price looks cheap to me on a fundamental basis.
Walmart (WMT) currently trades at $52 a share. I have never been a big fan of the stock as it offers very limited growth potential. I have written numerous posts in the past about the retailer’s lack of growth catalysts. I will have to admit that it the stock drops to the upper 40′s that it would make a nice dividend play. A 3% plus yield would make it a potential buy.
Staples (SPLS) has recently popped up on my radar. The stock currently trades for just $20 per share. The stock trades at 16 times earnings and 11.5 times forward earnings. Investors are getting a 2% yield on their investment as well. I would be a buyer in the high teens.
I have been adding to my position in financial stocks over the past few weeks. I am still bullish on the sector for the next 3 to 5 years. Lower unemployment and higher consumer spending is great for bank stocks. Investors looking for exposure to the sector without having to pick individual winners can buy the Financial Select Sector SPDR (XLF).