Key points
- Marketbeat’s screening tools include the list of cheap dividend stocks, a treasure trove of investment ideas.
- Investors should apply additional due diligence when using this or any other screening tool.
- Four of the top five listed stocks are solid candidates for income investors.
- 5 stocks we like better than Big 5 Sporting Goods
Among Marketbeat’s many investor resources are screening pages that search for hard-to-find investments. One such tool is the screening for page Economic dividend stocks, which is a real treasure trove of candidates. Weed out stocks trading within 20% of their 52-week lows that pay 3% or more in yield. Investors can use the list as a starting point for their research and apply other criteria to weed out the bad from the good. This is a look at the top 5 stocks on the list and whether they are to buy, sell or hold.
#5 AdvisoryShares Dorsey Wright Short ETF made the cut
AdvisoryShares Dorsey Wright Short ETF NASDAQ: DWSH made the cut, regarding its trading status and dividend yield, but investors should think twice before buying this. This actively managed short-focused ETF has only trended down since its launch in 2019. It pays a dividend but has only made one payment and is an excellent example of why screening lists shouldn’t be blindly trusted of any kind. This is a candidate to sell.
#4 Ambev’s high-yield trades are at rock bottom
The one from Ambev NYSE:ABEV High-yield stocks are trading at rock bottom and are attractive for several reasons. The dividend yields about 10% with shares trading at this level, but there is a risk to the payment. The company pays out at least 40% of adjusted annual earnings, so the distribution may be uneven. The mitigating factor is that the company is expected to return to year-over-year growth as early as the current quarter and extend its streak of annual distribution increases to three years.
Ambev is a candidate for dividend capture strategies because it pays annually. This means that investors can aim to purchase the stock before the expected dividend announcement and then sell it after the ex-dividend date, capturing the full yield in the shortest time possible. Seven analysts rate ABEV as a hold and see it advancing at least 15% into the low end of their target range. ABEV is a takeover candidate.
#3 The 5 most important sports items have profound value
Top 5 sporting goods NASDAQ: BGFV headwinds have left the stock market at multi-year lows. The minimum is partly due to a recent distribution cut that reduced the payout by more than 50%. However, the stock yields more than 5% and is a value play for investors. The Big 5 are expected to return to sustained growth and profitability by the end of the fiscal year, and the new payout will be reliable until then. The company’s balance sheet is a fortress with no debt and the ability to invest in growth. Big 5 plans to open five new stores this year and close four as part of its optimization program. One analyst rates BGFV a hold and sees the stock rising 170%.
#2 Cullman Bancorp, Inc. is a solid return for small-cap investors
Cullman Bancorp NASDAQ: CULL is a small bank in Alabama that pays a safe and reliable rate of 1.2%. The company made a distribution cut in 2021, but is able to sustain payment, and today’s outlook includes potential for distribution growth. The payout ratio is less than 20% of cash flow, with deposits and revenues increasing substantially over the two- and three-year periods. No analysts rate this stock, but institutional activity is interesting. Institutional buying increased last year and activity was strong in the first quarter of 2024, led by Vanguard. Institutions own about 25% of the stock and may continue to buy it because the stock is near a 13-year low.
#1 Hanover Bancorp: Better return and value for small-cap investors
Hanover Bancorp NASDAQ:HNVR is a small-cap bank in New York that offers better value and yield than Cullman Bancorp. It trades at less than half value, near 8X, pays 150 basis points more in yield, and has a similar financial position and outlook. An analyst followed by Marketbeat has a rating on this stock. Piper Sandler raised its target to $21 from $20 in January this year, implying a 40% upside for investors.
Before you consider the Big 5 sporting goods, you’ll want to hear this.
MarketBeat tracks Wall Street’s highest-rated and best-performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market takes hold… and Big 5 Sporting Goods wasn’t on the list.
While Big 5 Sporting Goods currently has a “Hold” rating among analysts, top-rated analysts believe these five stocks are better buys.
View the five stocks here
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