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5 Cheap Dividend Stocks to Buy

Cheap stocks that pay stable and often generous dividends could deserve a place in your portfolio

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Cheap Dividend Stocks #2: STMicroelectronics (STM)

cheap-dividend-stocks-stmelectronics-stm-stockShare Price as of 4/4: $9.14
YTD Stock Performance:
Dividend Yield: 4.4%

Sometimes cheap stocks are cheap because they’ve had a rough ride — and some of them are buys when the tough times look like they’re over. STMicroelectronics (STM) has struggled in the semiconductor industry (who hasn’t?), but its prospects are looking up.

STM and Ericsson (ERIC) split up their ill-advised partnership last summer. That will help STM’s cash flow and bottom line because the partnership with Ericsson bled red ink.

As for strategic positioning, STM is an enviable place. Major customers include Apple, General Electric (GE) and and Siemens (SI). It’s also moving into or already a leader in some hot new markets.

STM is No. 1 when it comes to wearable technology such as smartwatches, and it’s on the cutting edge in nanotechnology. It’s also the third-largest supplier to the automotive industry, which is seeing its own resurgence in growth.

This is also a dividend stock you can count on. Even when earnings were volatile during the Ericsson partnership, STM still maintained its payout level. STM boasts a dividend yield north of 4%, though it hasn’t improved upon its nominal payout since 2011.

Article printed from InvestorPlace Media,

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