When dividend-paying companies are undervalued, investors stand to gain a constant stream of dividend income on top of capital gains, as over time, the company market value move towards what it is intrinsically worth. I’ve made a list of value-adding dividend-paying stocks for you to consider for your investment portfolio.
Hi-Crush Partners LP (NYSE:HCLP)
Hi-Crush Partners LP, together with its subsidiaries, provides proppant and logistics solutions to the energy industry in North America. Established in 2012, and headed by CEO Robert Rasmus, the company employs 95 people and has a market cap of USD $1.04B, putting it in the small-cap category.
Over the past 5 years, Hi-Crush Partners has been distributing dividends back to its shareholders, with a recent yield of 6.84%. HCLP’s yield exceeded United States’s top dividend payer average yield of 3.95%. The company’s payout ratio currently stands at 36.05%, illustrating that its dividend payments are well-covered by its earnings. HCLP is trading beneath its true value by 56.25%, meaning HCLP can potentially bring about strong capital gains through mispricing. More on Hi-Crush Partners here.
LCI Industries (NYSE:LCII)
LCI Industries, along with its subsidiaries, manufactures and supplies components for the manufacturers of recreational vehicles (RVs) and adjacent industries in the United States and internationally. Established in 1962, and now run by Jason Lippert, the company provides employment to 9,852 people and with the stock’s market cap sitting at USD $2.38B, it comes under the mid-cap group.
Over the past 4 years, LCI Industries has been distributing dividends back to its shareholders, with a recent yield of 2.33%. LCII’s upcoming dividend are appropriated covered by its profits over the next three years, according to industry analysts, with a forecasted payout ratio of 0.071%. At the current payout ratio of 38.60%, LCII’s yield surpasses United States’s low-risk savings rate of 1.42%. LCII is also undervalued by 47.57%, meaning that now is a good time to buy LCII at a good price. Dig deeper into LCI Industries here.
Ameriprise Financial, Inc. (NYSE:AMP)
Ameriprise Financial, Inc., through its subsidiaries, provides various financial products and services to individual and institutional clients in the United States and internationally. Formed in 1894, and currently lead by James Cracchiolo, the company currently employs 13,000 people and with the stock’s market cap sitting at USD $20.69B, it comes under the large-cap stocks category.
Ameriprise Financial has been paying dividend over the past 10 years. It currently paid an annual dividend of US$3.32, resulting in a dividend yield of 2.34%. At the current payout ratio of 33.74%, AMP has been able to sensibly grow its dividend per share in the last 10 years, raising its yield to above United States’s low risk savings rate of 1.42%. AMP is undervalued by 30.18%, which means AMP is currently an attractive buy for those looking for dividend and capital gains. Interested in Ameriprise Financial? Find out more here.
For more mispriced dividend stocks to add to your portfolio, explore this interactive list of undervalued dividend payers.