What if I told you that they are in such a high market? nine Dividend Shares: Price-to-Earnings (P / E) to nine?

And that this low P / E ratio pays 6.9% dividends per year.

If I had not studied and written, I would not have believed it myself. But in a minute I will share the details of this 9-pack, which is 4.2% lower. 19.2%.

We can hardly see these hidden gems being advertised on major financial sites. Because the S&P 500 is in the stratosphere, trades at this level are ignored. But we, on the contrary, see the shares of these dirty-cheap dividends, which:

  1. Boast P / E ratios of just 8.5 on average.
  2. Yield: 6.9% collective.

Let’s start with him LyondellBasell (LYB, 5.1% Yield)The leading multinational chemical company in the Netherlands, the leading manufacturer of polypropylenes, the largest patenter of polyolefins, both of which have a wide range of applications, from consumer packaging to automotive parts.

LYB underperformed the market in 2021, selling for almost 25% yield on the S&P 500, which allowed the market in 2021, only 5.5 times higher than revenue.

Admittedly, Liondel is “cheap for a reason.” In particular, the company expects a large operating decline in 2022 – a 4.4% decline in revenue – a nearly 19% decline in revenue due to increased investment costs.

Tax preparation services company H&R block (HRB, 4.4% yield) can it – against the winds. The shares outperformed the market as incentives այլ other COVID funds caused a new tax headache. It shocked the entire tax industry for a year, but now H&R is facing the challenge of retaining those customers. P / E before 9 can take this into account.

Strategic education (STRA, 4.2% yield) և: Western Union (WU, 5.7% Yield) end up in the trash as their business models are challenged.

Take Western Union, which in the case of the 7.7 primary P / E is certainly attractive from an evaluation point of view. Also և about 6% yield. But stocks are weakening under the weight of transformational changes in their industry, with the growth of both traditional e-payment companies and cryptocurrencies.

At the same time, Strategic Education, the result of the merger of Strayer և Capella Education’s 2018 for-profit educators, has long underperformed the prospects for a rapidly evolving educational landscape that challenges even the most sacred traditional institutions. The low 13.8 ahead of the P / E reflects these difficulties, as well as the expectation of an operational downturn next year.

It is more attractive Chevron (CVX, 4.8% Yield), which is sold 11 times the profit margin. The rise in oil and gas prices is not an automatic gain for the large Chevron, where the benefits of its E&P division are partially offset by higher input costs for its huge refining operations. However, merging better energy prices աճ increasing demand for its recycled products is ultimately good for CVX prices.

And it’s hard not to love Chevron’s cunning and flexibility. Even when he was saving cash during the COVID energy crisis, he bought Noble Energy for $ 5 billion whole stock deal. It was able to continue to increase its dividends and recently revived its share repurchase program.

One of the most attractive areas is the insurance industry, where rising interest rates benefit insurers who want to invest premiums in lower risk assets.

I recently raised his profile Prudential Financial (PRU, 4.3% Yield)whose businesses include personal life և group insurance, annuities, pension services և investment management և etc.

“The management knows a lot when it sees that it has bought back 10% of the PRU shares in the last five years,” I said. And Prudential is now trading its own shares for 9 times the profit.

However, it is not the only attractive insurer. Unum Group (UNM, 4.8% Yield) In the United States է is the leader in disability insurance in the UK. Other products offered include life, serious illness and accident insurance. And Wall Street seems to be sleeping on its growth prospects, despite a 16% profit growth forecast for 2022, with UNM selling at 5.5 times lower revenue estimates.

There is another insurer that is worth watching Old Republic International (ORI, 3.5%)– Old Guards General մատակարար Title Insurance Provider, the title yield of which denies a much more powerful income producer. Note my last look at ORI.

Where ORI’s pay exceeds ‘good’ to ‘excellent’, it’s quite consistent special dividends. Old Republic uses a two-part dividend system that allows the insurer to make regular payments, as well as annual special payments based on annual earnings.

By the way, his 22 cent dividend, which, by the way, has grown tremendously for 40 years in a row, making it an aristocrat of average capital, is good for only 3.5% yield, which is 4% off our screen. However, considering the special $ 1.50 dividend per share announced in September,: you look great. 9.2% yield!

Boiler sweetening 9.5 forward P / E.

Speaking of special dividends, let’s give OneMain Holdings (OMF, 5.7% Yield) second look. The company, which operates under OneMain Financial, provides individual loans to about 2.2 million customers, many of whom have non-core credit units.

This is certainly a cyclical business, but one that grew like a weed during COVID. And it has generated huge dividends. Instead of paying separate special dividends, the OMF sets a “floor” for quarterly dividends and then pays at least that, or possibly more. At the end of 2020, OMF set its dividend at 40 cents per share. This year it paid a dividend of $ 3.95 per share, then – 70 cents per share (imposing a new tax in the process), then – $ 4.20 per share – up to 70 cents. That $ 9.55 per share translates to a 19.2% total yield at current prices!

And we get that yield only 5.5 times the estimates.

Brett Owens is a Chief Investment Officer Opposite perspective. For better revenue ideas, get your free copy of his latest special report. Your early retirement portfolio. 7% dividends every month forever.

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