Investors love dividend stocks and they are the basis of many stock portfolios that are used for retirement purposes. Shareholders love companies that have solid business plan that will pay dividends on a consistent basis.
When people invest in stocks that pay dividends, it is usually for the long haul and this will cut down on daily trading and reduce the chances of a volatile market. In addition, dividends can be reinvested and this allows for larger gains. These types of payouts can be the difference from retiring on minimal income or living out your dream once you stop working a 9 to 5 job.
With these facts in mind, let’s take a closer look at a few inexpensive stocks that pay dividends.
This Spain based company has suffered a huge unemployment surge and growth has been slow throughout the EU, European Union. In addition, this company is buried in 52 billion dollars in debt.
But there is a light at the end of the dark tunnel that is that this company has been effectively cutting expenses and following the path of things that have worked in the past.
For instance, Telefonica (NYSE:TEF) is shifting around their assets and getting rid of assets in Czech Republic and Ireland. Recently, the company received a generous offer of 15 billion dollars for their mobile unit based in the U.K.
Currently, this company offers a generous dividend of 5.6% and for this reason, it is a very attractive buy option, as well as the current stock prices which are $15.36 a share.
Duke Energy (NYSE: DUK)
Although this company is not in disastrous state, they did disappoint with their fourth quarter earnings. Duke Energy (NYSE: DUK) wrote off 100 million dollars due to a settlement over the Dan River ash spill and they used 373 million to cover tax expenses relating to international earnings. Combine this information with the rise in maintenance expenses and downtime that was incurred, it is easy to see why this company was a disappointment.
But from a bullish standpoint, this company deserves a closer look.
For example, this company provides electricity, a basic necessity. A large portion of their revenue comes from regulated businesses which stabilizes the market and reduces exposure to electric prices that are wholesale.
Energy prices work in favor for the company because every homeowner requires electricity. Maintenance expenses can be reduced by a percent or two annually.
Also, Duke Energy (NYSE: DUK) has about 2.3 billion dollars in profits and it will be interesting to see what they do with this cash.
This is certainly a company to watch closely, especially the current four percent dividends, which is very inciting. The stocks for this company are currently trading at $79.68 a share.
Potash Corp. (NYSE: POT)
This fertilizer company has a lot to offer investors that are willing to invest long term. They are focusing on improving crops yields for farmers and while of course they will not be able to create more land, they can help in what is produced on current land. This can mean continued growth for the company around the world, especially in Asian regions.
The dividend payouts are currently holding at 4.1 percent and this makes this company a very worthy buy for investors. The current trading price for this company is $36.95 per share.