Cheap Dividend Stocks Worth Investigating

We have found five dividend stocks that have "safe" dividends (all have a payout ratio of less than 60%), but are also undervalued -- having a PEG of less than 2.0. Although the dividend yields range from 2% to 3%, they all have been growing their dividend payments by at least 20% annually over the last five years.

Dividends can be a big part of portfolios during low interest rate environments and we have a special appreciation for dividend-paying stocks, but what makes these stocks even greater is the expectation that the dividend payments should continue to move higher and the realization of the stock's under-pricing will lead to a higher stock price: Quest Diagnostics Inc (NYSE:DGX), Target Corporation (NYSE:TGT), Coca-Cola Enterprises Inc (NYSE:CCE), St. Jude Medical, Inc. (NYSE:STJ) and Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL).

Source: Seeking Alpha

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