Now Paying 3+% Dividends: These 5 Value Stocks

Each of these stocks pays a dividend of greater than 3% — which is significantly more than U.S. Treasury bonds or notes are paying right now. Obviously, an investor in an equity is taking on more risk than purchasing government-guaranteed rates but some may find these interesting.

Aegon AEGN is a Netherlands-based insurance and asset management firm that trades on the New York Stock Exchange.

The stock is available for purchase at less than half its book value and the price/earnings ratio is a measly 4.3. This, at a time when the Schiller p/e for the S&P 500 sits at just above 30. Shareholder equity exceeds long-term debt.

Earnings were very good last year and they look good on a 5-year time frame, although the most recent quarter-to-quarter results are in the red. Shorts do not seem concerned as the short float is a tiny .11%. Aegon pays a dividend of 5.5%.

TD AmeriTrade AMTD is an investment firm, NASDAQ NDAQ -traded and headquartered in Omaha, Nebraska.

The stock trades at just over 2 times book value and the price/earnings ratio is 10.9. Earnings per share for the year to be reported are expected to be pretty bad, but the record for the past 5 years looks good.

TD Ameritrade’s long-term debt is less than shareholder equity. The company pays a 3.14% dividend. The short float is 3.4%, slightly higher than the other names on this list.

Boston Private Financial Holdings is traded on the NASDAQ at a price that represents just 57% of its book value.

The price/earnings ratio is 10 and shareholder equity is greater than long-term debt. This is another where the most recent quarter-to-quarter earnings do not look good but the 5-year record is positive. Average daily volume is just over 500,000 shares, relatively light compared to the others on this list.

Boston Private pays a dividend that yields 4.17% at this price. Note that the last buying volume indication on the price chart represents significantly more single-day purchasing than the stock has seen in months.

General Dynamics GD is well-known in the aerospace and defense industry. The company is NYSE-listed with corporate headquarters in Reston, Virginia.

The stock trades at about 3 times book and the price/earnings ratio is 12.7. This year’s earnings are in the green and so is General Dynamic’s 5-year earnings record. There is more long-term debt than shareholder equity but shorts do not seem all that concerned: the short float is .98%. Shareholders receive a 3.08% dividend.

Royal Bank of Canada is traded on the New York Stock Exchange with corporate offices in Toronto, Ontario.

The price/earnings ratio is 12 and the big financial institution trades at 1.2 times book value. The 5-year earnings record is positive. Long-term debt is less than shareholder equity. The short float in Royal Bank of Canada is a low .56%. A dividend of 4.53% is being paid to shareholders.

These are not buy recommendations. It’s likely that Wall Street research departments searching for value and dividend yield are finding these names on their screens these days.

Stats courtesy of FinViz.com.

I do not hold positions in these investments. No recommendations are made one way or the other.  If you’re an investor, you’d want to look much deeper into each of these situations. You can lose money trading or investing in stocks and other instruments. Always do your own independent research, due diligence and seek professional advice from a licensed investment advisor.

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