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4 Yields Up to 9.2%: Hidden Gems or Value Traps?

The broader market is expensive right now. Price-to-earnings (P/E) ratios in the 20s and even 30s and higher are the current “norm.”

No thanks—we’ll take a look in the bargain bin.

Today we’ll discuss a four-pack of dirt-cheap dividend payers dishing between 4% and 9.2%. They are much cheaper than their peers. Check it out:

The S&P 500’s forward P/E (22.2) has only been this high twice in the past 40 years: the COVID bottom and recovery, and the dot-com bubble and burst.

The small-cap Russell 2000’s forward P/E (26.5) isn’t in as rarefied air, but it’s still near the top of its historic long-term range.

We contrarians follow Wall Street analysts because we like to fade their opinions!

When most say Buy, we are cautious. There is nobody left to upgrade these shares.

When they slap a Sell label, we are intrigued. So you’re saying the next rating change will be an upgrade?

These slippery suits rate most stocks Buys because, well, that’s the business. As we speak, 400 of the S&P 500 (!) is rated a Buy!

Even at All-Time Highs, Analysts Say 80% of the Market Is a Buy!

Source: S&P Global Market Intelligence

So let’s sift through the Holds and the Sells. Today we’ll sort through a four-pack yielding between 7.9% and 20.6%.… Read more