We already know dividend stocks can be among the best picks for income investors, but they can be even better investments when they:
– Are low in price. It’s never a bad thing to grab shares while they’re inexpensive. – Show promising business metrics, earnings, and growth potential.
– Have significant upside potential, leaving room for price appreciation.
We have three that cover it, and you won’t believe how cheap these dividend stocks are…
Nordic American Tanker Ltd (NAT)
Nordic American Tankers Ltd. (NAT) is a global tanker company specializing in the ownership and operation of Suezmax crude oil tankers. The company is based in Hamilton, Bermuda, with only a few dozen employees. NAT is an appealing option for investors seeking a cheap dividend stock. Since its inception, NAT has consistently provided regular dividend payments, highlighting its commitment to returning value to shareholders. Moreover, NAT’s position within the Marine Shipping industry places it at the forefront of the sector. As one of the leading companies in its field, NAT benefits from the growth potential and opportunities within that particular market.
NAT is up year-to-date by 19.61%, with a positive SMA (simple moving average) and a very safe beta of 0.36. From $410 million in TTM revenue at $0.43 per share, NAT has generated a net income of $89 million via its 21.66% net margin. NAT has an ROE of 17% and a PEG (price/earnings/growth) ratio of 0.62x, showing year-over-year revenue growth (+461.14%), net income (+273.83%), and net profit margin (+130.98%). NAT has an annual dividend yield of 10.35%, a quarterly payout of 9 cents ($0.36/year) per share, and a 90.24% payout ratio. With a 10-day average volume of 2.38 million shares, NAT has a median price target of $4.80, with a high of $6 and a low of $4, representing a potential price leap of 64%.
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ARC Document Solutions Inc (ARC)
Based in California, ARC Document Solutions, Inc. (ARC) offers document management solutions and related services. ARC is a cheap dividend stock that has consistently made payments since 2019, providing reliable income for its shareholders. With a focus on efficient document handling and workflow optimization, ARC is well-positioned in the industry and poised for growth.
ARC is up by 15.02% year-to-date and shows healthy pricing ratios: A PEG ratio of 0.85x, a P/S (price to sales) ratio of 0.47x, and a P/B (price to book) ratio of 0.86x. ARC shows TTM revenue of $285 million at $0.25 per share, and it made a same-period profit of $11 million through its 6.56% net margin. ARC has a 5.93% annual dividend yield, a quarterly payout of 5 cents ($0.20/year) per share, and a generous 80% payout ratio. With $27 million in free cash flow and a 10-day average trading volume of roughly 111 thousand shares, ARC has a median price target of $5.25, with a high of $6 and a low of $4.50, which represents a potential price upside of around 78% from its current position.
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VAALCO Energy Inc (EGY)
Vaalco Energy Inc. (EGY) is a captivating choice and a gem among affordable dividend stocks. With its expertise in acquiring, developing, and producing oil, EGY offers a gateway to the alluring world of the crude oil industry. As the world’s oil demand persists, EGY stands to ride the wave. EGY paints a promising picture, teasing investors with the allure of generous returns. Ultimately, though, it’s no tease. There is both a nice dividend and significant price appreciation to be found here.
EGY is currently down year-to-date by 16.12%, trading at the bottom of its existing 52-week range, making for an opportunity. EGY shows $366 million at $0.56 per share in TTM revenue, profiting nearly $43 million via its 11.80% net margin. EGY has a PEG ratio of 0.11x, a P/S ratio of 0.7x, and a P/B ratio of 0.86x, and shows year-over-year revenue growth of 17.11%. For the current quarter, EGY is forecasted to report $103 million in sales with an EPS of 19 cents per share. EGY has an annual dividend yield of 6.53% and a quarterly payout of 6 cents ($0.24/year) per share. With a 10-day average volume of 1.25 million shares, EGY has an average price target of $8.89, with a high of $9.50 and a low of $8.40; this represents a whopping potential price upside of almost 150% from its current position.
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