I’m always looking out for good quality securities, and if they are under valued that’s great and if they yield high dividend income, even better!
I’ve been pondering about following 3 stocks since some time. In fact, I own two of them and thinking to add 3rd one which is high dividend. As soon as more capital becomes available, I will be gnashing my teeth in some of these great companies.
1) Abbot Laboratories: ABT
Abbot Laboratories is a pharmaceuticals and health care products company that was founded in 1888. In 2011, Abbot announced that it planned to separate into 2 companies: Abbot and AbbVie, primarily, research-based pharma company.
ABT is trading at P/E ratio of 23.20 with a healthy yield of 2.30% and Market Cap of $58.07 Billion. It’s 52 week was $40.49 and currently at $32.70 looks under valued, almost 20% down from its 52 week. I will be looking to add positions in ABT.
2) Hewlett-Packard Co: HPQ
Hewlett-Packard is a multinational IT technology company with varied interests in hardware, software and services and was founded by Bill Hewlett and Dave Packard in 1935 in a car garage. HP has many marquee products under their belt like printers: Deskjet & Laser, PC, Palm, and many others.
HPQ is at reasonable P/E ratio of 11.90, a yield of 1.80% and Market Cap of $62.01 Billion. It’s currently trading at $32.72, almost at its 52 high of $33.66, however, considering it’s no where close to 5 Yr high of almost $50, has much room to move further. I started adding positions when it was almost $20 last year and looking to add few more.
3) Prospect Capital Corp: PSEC
PSEC is a leading provider of private debt and equity capital and is a genre of business development company (BDC) and due to monthly payment, it can be a great fit for dividend income earners.
PSEC is at P/E ratio of 9.30, an excellent yield of 12.30% and Market Cap of $3.36 Billion. It is currently trading at $10.82, which is 7% lower than its 52 week high of $11.62. PSEC has moved up quite a lot in last 5 years and it can be considered as fairly or little over-valued, however, due to its high dividend and also monthly frequency, I will look forward adding to my portfolio.
Are there any securities you are considering to add to your portfolio?
Full Disclosure: Long on ABT, HPQ.