Trio of Lower-Valued Dividend Titans Rebounding from Their Annual Low Points
Investing in stocks for capital appreciation is all about finding the right one at the right time, while minimizing risk as much as possible. That's where Dividend Kings come in; they offer a balance between stability and income.
Even when the market is facing headwinds and stock prices hit 52-week lows, that's where I see an opportunity. A sharp turnaround could be just around the corner. So let's check out three undervalued Dividend Kings primed to conquer the market and attract early investors.
I came up with these companies by utilizing our website's Stock Screener. The filters I used include:
- 14-Day Relative Strength Index: Less than 50%. A sweet spot within the range.
- Percent From Low: Set to 10% above 1-year or 52-week low. This filters the stocks near their yearly low point.
- Number of Analysts: 8 or more. The more analysts, the stronger the confidence rating.
- Current Analyst Rating: 3.5 (Moderate Buy) to 5 (Strong Buy).
- Watchlist: Dividend Kings.
After setting these filters, I narrowed down my choices. Here they are, arranged based on their percent change:
Sysco Corp (SYY)
Sysco Corporation dominates as the world's top seller of food-related products, serving over 730,000 customer locations through 340 distribution centers in over 90 countries. With four business groups, they cater to a broad clientele.
Sysco's EPS for FY'2024 is projected to be $3.90, a 11.7% increase from 2023. It pays a forward annual dividend of $2.16, providing an approximate 2.96% yield. Currently, the stock trades at $73.06, around 8.8% above its 52-week low of $67.12. SYY is a "moderate buy" according to 17 analysts.
Colgate-Palmolive Company (CL)
Colgate-Palmolive, another undervalued Dividend King, operates primarily in the consumer staples sector, similar to P&G. With a presence in over 200 countries, the company offers oral care, skin health, personal care, home care, and pet nutrition products.
The company's FY'2024 EPS stands at a respectable $3.51, marking a 26.7% increase over the previous year. In terms of stock price, CL is up 7.7% from its 52-week low. Like the first two stocks I discussed, 21 analysts consensus rate Colgate-Palmolive stock a "moderate buy."
Colgate-Palmolive pays a forward annual dividend of $2.08, translating to an approximate annual yield of 2.26%.
Procter and Gamble Company (PG)
The last entry on our list of Dividend Kings to buy is Procter & Gamble, a leading provider of personal and home care products to millions of families and households. Although most people may not know the company by name, they've likely used its brands like Pampers, Tide, and Head & Shoulders, to name a few.
The company's FY'2024 EPS is projected to be $6.59, representing a 11.7% increase compared to the previous year. PG's stock price is also up 7.1% from its 52-week low. The stock garners a “moderate buy” rating by 25 analysts.
Procter & Gamble offers a quarterly dividend of around $1.06, translating to a yield of roughly 2.5%. The yield may not be the highest, but its upside potential is something worth keeping an eye on.
In conclusion, these undervalued Dividend Kings provide stable income, making them solid additions to your income portfolio. Just remember to stay informed about market headwinds and geopolitical risks, as these factors can impact even the most established companies.
These undervalued Dividend Kings present prime investment opportunities for personal-finance enthusiasts considering technology-agnostic approaches to expanding their portfolio. According to the analysis, Sysco Corp (SYY), Colgate-Palmolive Company (CL), and Procter and Gamble Company (PG) all offer significant income potential while maintaining an upside for capital appreciation, particularly in the context of technology-focused investing in the entertainment and consumer staples sectors.
