Today, I am discussing six cheap dividend stocks that are worth buying in July. This is because the company’s underlying earnings more than cover the dividend payments. That makes their dividends more secure, and therefore, increases the valuation of the stocks.
Moreover, these dividend stocks might be considered cheap if their yields are higher than their average over a four or five-year period. That is one way that an investor can assume that the stock will eventually return to its normal yield.
Lastly, some dividend stocks are cheap if the earnings of the company are growing nicely, or the company produces large amounts of free cash flow. If it uses the cash flow to buy back shares, then the dividend per share (DPS) can rise over time with the same dividend cost.
Let’s dive in and look at six dividend stocks for investors to keep their eyes on.
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