High Yield S&P 500 Stocks for Less Than Book Value

High-yield investing is popular especially in times of low interest rates. A big problem with this strategy is that high-yield stocks often have strange valuations and it is hard to get real bargains. One way to find bargains is to scout for stocks with a market capitalizations below book value. This means if you purchase a part of the company for a dollar, you get more than one dollar in company’s equity. Investors who use this strategy should take a closer look at the accounted values of the company in order to identify asset bubbles. With this thesis in mind, let’s look at the S&P 500 index.

I screened the S&P 500 by stocks with a dividend yield of more than 5%. In addition to the high dividend yield, the market capitalization should be less than the accounted book value of the company. Here are the results sorted by dividend yield:

1. CenturyLink (CTL)
2. Cincinnati Financial (CINF)
3. Hudson City Bancorp (HCBK)
4. People's United Financial (PBCT)
5. Ameren Corporation (AEE) i

Source: Guru Focus

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