Dividend Stocks That Are Solid Buys

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).

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5 Responses to “Dividend Stocks That Are Solid Buys”

  1. Staples also does pretty well during the summer with Back to School season. Could be a good buy.

  2. Thanks for the tips, Ive been looking for some other dividend stocks. Im currently invested in ADP and they have done really well over the past year, and steadily increasing their dividend as well.

  3. avatar JT McGee says:

    Staples is interesting this year as a play on the bonus depreciation law. Long-term, though, I worry about the internet killing the low-margin office retail space. While there is some rigidity, and some of a moat in the fact that Staples contracts with a LOT of businesses directly, I can’t see how they can defend against a long-term shift to online ordering.

    • avatar Mark says:

      They have a pretty good online ordering presence but they may be forced to close stores if it really picks up in the industry.

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