Value stocks right now are generally out of favor as the big Wall Street money has been flowing toward and into hot tech and social media names. To a contrarian frame of mind, that could mean the time is right or about right to consider equities with the classic valuation metrics.
A good start would be to find those trading with lower-than-the-market price-earnings ratios. To continue, it’s a good idea to seek those low p/e stocks that represent companies with little or no debt on the books. Which of those pay dividends?
There’s more to it than just the three factors mentioned, but an investor is off to a good start with those as essentials to begin with. Further research is required.
4 Low P/E Value Stocks Paying Dividends.
Ambev (NYSE: ABEV)
This brewing stock, based in Brazil, hit a new low in early January 2025 and has gone sideways from there. The price has been in a downtrend for awhile and presently resides well below both the 50-day and the 200-day moving averages.
Market capitalization is $28 billion. The price-earnings ratio is 10.43, in contrast to the Shiller p/e for the S&P 500 now at 38.47. The debt-to-equity ratio is .03. This year’s earnings are down by 17% and down over the past five years by .73%. Ambev pays a 6.95% dividend.
DRD Gold (NYSE: DRD)
The South African gold miner has rallied in January 2025 and now trades above both the 50-day and the 200-day moving averages. That’s quite a wide trading range: from the September 2024 low of $7.50 to the late October 2024 high of just above $12.50.
Market cap is $888 million. The price earnings ratio is 12.57. The company has no debt, long-term or otherwise. This year’s earnings are up by 29% and up over the past five years by 150%. Average daily volume is a relatively light 282,000 shares. DRD pays a 2.20% dividend.
Opera Ltd (NASDAQ: OPRA)
This Norwegian internet content and information company traded in an up trend from early August 2024 to late November 204 and has since slid to below the 50-day moving average.
The market capitalization is $1.61 billion. The price-earnings ratio is 9.15. The debt-t0-equity ratio is .01. Earnings this year are down by 56.99% and up over the past five years by 37.80%. Opera offers investors a dividend of 4.41%.
T. Rowe Price Group (NASDAQ: TROW)
The asset management firm hit a new high in early December, quickly declined, and now trades below the 50-day moving average and just above the 200-day moving average.
Market cap is $25.37 billion. The price-earnings ratio is 12.51. The debt-to-equity ratio is .04. This year’s earnings are up by 23% and up over the past five years by 1.31%. T. Rowe Price pays a 4.34% dividend.
Stats courtesy of FinViz.com. Charts courtesy of Stockcharts.com.
More analysis and commentary at johnnavin.substack.com.
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