3 dividend stocks: opportunities for bargain hunters despite market distortions

3 dividend stocks: opportunities for bargain hunters despite market distortions

According to a report from Börse Online, some dividend stocks have currently become so cheap that they can no longer be ignored by bargain hunters. Three such stocks are highlighted: Realty Income, Daimler Truck and McCormick.

Realty Income, a US REIT, is considered an industry leader and one of the most stable stocks in this sector. Due to the rise in interest rates, the valuation of the share has fallen significantly, which is particularly evident in the increased dividend yield from 4.2 percent to 6.1 percent. Analysts see a price potential of 31 percent for Realty Income.

Daimler Truck shares have also become significantly cheaper. Due to economic concerns, the price-earnings ratio (P/E) has fallen from 11.5 at the time of the IPO to 6.75. Nevertheless, the truck manufacturer is expected to continue doing good business. Analysts see a price potential of 58 percent here.

McCormick is a manufacturer of spices and flavorings. The share has lost 27 percent of its value since the beginning of the year and is now only valued at 22 instead of an earnings multiple of over 30. Analysts see a price potential of 24 percent for McCormick.

These developments in the dividend stock market can impact both the market itself and the consumer. A cheap entry into these stocks can be attractive for investors and offer the potential for high returns. This could lead to increased interest in these stocks and prices continuing to rise.

Source: www.boerse-online.de