PE Ratio Below Ten, Dividend Yield Above 4: Bargain Basement Stocks With Some Risk

With many utilities and other dividend-paying stocks having been bid up by income-hungry investors, it’s getting tougher to find relatively cheap stocks that pay out a nice dividend.

For instance, here some stocks -- Consolidated Edison (ED) and Dominion Resources (D) among them -- with dividend yields of 4% or more, but look at the pricey PE ratios.

CMS PE Ratio TTM Chart

CMS PE Ratio TTM data by YCharts

But using the YCharts Stock Screener, turns up a handful of recognizable stocks trading quite cheaply and offering fat yields. Four major oil companies are among them.

RDSA PE Ratio TTM Chart

RDSA PE Ratio TTM data by YCharts

RDSA Dividend Yield Chart

RDSA Dividend Yield data by YCharts

And here’s a more varied group.

PPL PE Ratio TTM Chart

PPL PE Ratio TTM data by YCharts

PPL Dividend Yield Chart

PPL Dividend Yield data by YCharts

Now, of course, each of these companies has problems. Intel (INTC), the chip maker, is lagging behind in developing chips for mobile devices. The oil companies – Royal Dutch Shell (RDSA), Total (TOT), BP (BP), ConocoPhillips (COP) -- are facing slack demand with economic growth in Europe and China reduced. Strayer (STRA), a for-profit education company, like its competitors, is having a harder time signing up students with government loan rules made less lax. Safeway's (SWY) supermarkets are battered from below by Wal-Mart (WMT) and from above by Whole Foods (WFM). And so on.

So, these eight stocks aren’t necessarily buys, just ones cheap enough to be worth looking into.

From the editors of YCharts, which includes the just-released YCharts Pro Platinum for professional investors.

Read more articles about: Company Analysis  

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