Dividends With Room to Run

When it comes to investing, many skeptical investors believe that all good things must come to an end. For those who foresee an eventual crash for popular dividend stocks, though, it looks like the day of reckoning may take quite a while to arrive -- at least if the fundamentals behind many of those stocks have anything to do with their future performance.

You can find many stocks that not only have high yields and low payout ratios but also reasonable valuations based on earnings as well. According to S&P Capital IQ, resources stocks Freeport-McMoRan Copper & Gold (NYSE: FCX) , Chevron (NYSE: CVX) , and Cliffs Natural Resources (NYSE: CLF) have earnings multiples in the single digits and yields well above the 3% mark, but neither pays out more than a quarter of its earnings. Nor are the opportunities restricted to that sector; hard-drive maker Seagate Technology (Nasdaq: STX) and niche insurance provider Aflac (NYSE: AFL) meet the same criteria.

Source: Motley Fool

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