Investing

4 Dirt Cheap Dividend-Paying Value Stocks to Buy

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If you’re looking to protect your portfolio and generate income, keep an eye on dividend-paying value stocks. In fact, here are a few you may want to consider today.

Key Points About This Article 

  • With a yield of 3.56%, American Electric Power is an attractive bet on a recent pullback to $104.62. Its latest quarterly dividend of 93 cents per share is payable on March 10 to shareholders of record as of February 10.
  • With a yield of 6.65%, EPR Properties is another attractive high-yielding value stock.
  • With a yield of 5.5%, Realty Income, known as “The Monthly Dividend Company,” will pay out a dividend of $0.268 per share on March 14.
  • Keep your portfolio well-protected with reliably safe stocks with yield. You may also want to grab your free copy of “2 Legendary High-Yield Dividend Stocks“ now.

American Electric Power 

With a yield of 3.56%, American Electric Power (NASDAQ:AEP) is an attractive bet on a recent pullback to $104.62. Its latest quarterly dividend of 93 cents per share is payable on March 10 to shareholders of record as of February 10.

We also have to consider that electricity demand could increase by 38% between 2020 and 2040. That’s up from the 9% increase in demand between 2000 and 2020. In addition, according to the World Nuclear Association, electricity demand is increasing twice as fast as overall energy use and is likely to rise by more than half by 2040. They added:

“Growth in the world’s population and economy, coupled with rapid urbanization, will result in a substantial increase in energy demand over the coming years. The United Nations (UN) estimates that the world’s population will grow from 7.8 billion in 2020 to around 8.5 billion in 2030 and 9.7 billion by 2050. Electricity demand growth has outpaced growth in final energy demand for many years. Increased electrification of end-uses – such as transport, space cooling, large appliances, and ICT – are key contributors to rising electricity demand.”

Plus, the company is considering a $10 billion boost to its five-year capital spending plan, especially with data center demand on the rise.

EPR Properties 

With a yield of 6.65%, EPR Properties (NYSE:EPR) is another attractive high-yielding value stock.

The REIT, which invests in amusement parks, movie theaters, ski resorts and other entertainment properties. It just declared a monthly dividend of $0.285 per share, payable March 17 to shareholders of record as of February 28.

Earnings have also been impressive. 

Funds from operations (FFO) of $1.23 beat expectations by a penny. Revenue of $177.23 million, up 3.1% year over year beat by $15.98 million. Also, “For the year, we deployed more than $263M into accretive investments to grow our portfolio of differentiated experiential real estate,” said Chairman and CEO Greg Silvers, as quoted by Seeking Alpha. “We also continued to make progress reducing our theater and education investments and recycling those disposition proceeds into other experiential assets.”

Realty Income 

With a yield of 5.5%, Realty Income (NYSE:O), known as “The Monthly Dividend Company,” will pay out a dividend of $0.268 per share. That’s payable on March 14 to shareholders of record as of March 3.

“Realty Income’s ability to consistently deliver monthly dividends that increase over time is a testament to the dynamic platform we have built,” said Sumit Roy, Realty Income’s President and Chief Executive Officer, as quoted in a company press release.

“This is the 110th consecutive quarter we have increased our dividend since our 1994 NYSE listing and this declaration represents the 656th consecutive monthly dividend throughout our 56-year operating history.

Plus, so far retail acquisitions pushed Realty Income’s market cap to $51.18 billion. However, data center demand growth could also fuel further upside. As noted by Goldman Sachs, “the balance of data center supply and demand is forecast by Goldman Sachs Research to tighten in the coming years. The occupancy rate for this infrastructure is projected to increase from around 85% in 2023 to a potential peak of more than 95% in late 2026.”

FMC Corp.

With a yield of 5.62%, beaten-down shares of FMC (NYSE:FMC) are also worth a gamble.

The stock, which fell from $54 to $35 on poorly received guidance, is starting to run higher. Helping, Chairman and CEO Pierre Brondeau paid $1.9 million for 54,000 shares on March 4.

“My recent purchase of nearly $2 million in FMC shares reflects my personal confidence in our company’s strategy and future,” he said, as also quoted by Barron’s. “The current share price presented what I view as a compelling opportunity to increase my personal investment in a company whose short-term and long-term prospects I firmly believe in.”

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