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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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SeaDrill SDRL dividend stocksDividend: 7.9%
Forward P/E: 12.5
ROE: 33%

SeaDrill (SDRL) absolutely knocks it out of the park with its 7.9% dividend, but this Norwegian oil and gas driller has other things going for it as well.

Shares are up 25% for the year-to-date, outpacing the broader market by about a percentage point. That’s despite oil prices going nowhere to down, as well as Q3 results being hit by a recent settlement.

The forward P/E is almost 16% cheaper than the S&P 500, but SDRL has a long-term growth rate of more than 27%. That alone makes it a bargain. An ROE of 33% only adds to the allure of this cheap, high-quality stock.

As of this writing, Dan Burrows did not hold a position in any of the aforementioned securities. 

Article printed from InvestorPlace Media,

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