2023-04-20 09:19:00 ET
While the stock market has started to recover from last year's swoon, there are still several bargains out there these days. That seems to be especially true among companies that pay dividends. Higher interest rates have made lower-risk income investments like bonds and bank CDs more attractive, which has weighed on the values of dividend-paying stocks.
Three incredibly cheap dividend payers are Kinder Morgan (NYSE: KMI) , Diamondback Energy (NASDAQ: FANG) , and Essex Property Trust (NYSE: ESS) . Their low valuations have driven up their dividend yields .
Pipeline giant Kinder Morgan expects to produce about $2.13 per share of distributable cash flow this year. With shares recently trading at less than $18 a piece, Kinder Morgan sells for 8.5 times free cash flow, or a 12% free cash flow yield. That's dirt cheap compared to the broader market. The S&P 500 trades at about a 5% free cash flow yield, while the Nasdaq Composite is even more expensive at around 4%.
For further details see:
3 Incredibly Cheap Dividend Stocks