3 Dividend Stocks You Can Buy for a Song

Low P/Es and high returns on equity make these cheap stocks worth adding to your income portfolio

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3 Dividend Stocks You Can Buy for a Song

Freeport-McMoRan Copper & Gold

FreeporMcMoranCopperGoldLogo 3 Dividend Stocks You Can Buy for a Song

Dividend: 3.4%
Forward P/E: 11
ROE: 15%

Collapsing prices for precious and industrial metals have been most unkind to Freeport-McMoRan Copper & Gold (FCX), as shares are up just 6.4% so far this year.

On the upside, FCX’s underperformance has made a quality stock look cheap. The forward P/E offers a 25% discount to the broader market, despite having a stronger growth rate. Analysts forecast FCX to post annual average earnings growth of 11%, while the S&P 500 is seen clipping along at just 9.8%.

Throw in a return on equity of more than 15% and a dividend yield of 3.4%, and you’ve got another cheap, high-quality name suitable for income now — and price appreciation later when commodities turn up, too.


Article printed from InvestorPlace Media, http://investorplace.com/2013/11/3-quality-dividend-stocks-can-buy-song/.

©2014 InvestorPlace Media, LLC

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