These 3 Dividend Stocks Are Ridiculously Cheap

Interest rates are at historical lows all around the world, which is enticing investors to put money to work in the stock market if they want to generate income. Unfortunately, the yield on the S&P 500 is only about 2% right now, and its trailing price-to-earnings ratio of 25 suggests that the market is expensive. For that reason, some investors are searching for stocks that are both cheap and offer up a higher dividend yield than the market in general. Below is a list of three companies that fit that description, but that doesn't make them automatic buys.

You might be surprised to learn that Ford (NYSE:F) has morphed into a cheap income stock over the past few years. After all, the company was forced to abandon its divided in 2006 so it could hoard capital and survive the Great Recession. E-commerce giant Amazon has been wreaking havoc on the retail industry for the last two decades, and office suppliers like Staples (NASDAQ:SPLS) have been hit particularly hard. That's a big reason shares of this once-promising company have drastically underperformed the market over the past five years. The enormous growth in smartphone sales has greatly benefited telecom companies like AT&T (NYSE:T) over the past decade. On a total-return basis -- which accounts for dividend reinvestment -- shares of AT&T have outperformed the market during that time frame.

Source: Motley Fool

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