4 Big Dividend Stocks With Upside to Buy in a Very Overbought Market

While the post-Brexit rally has been outstanding, the market looks very overbought and ready to digest some of the big gains we have seen. The good thing for investors is there is absolutely nothing wrong with that, and taking profits now makes very good sense. The question is what to do with the proceeds. Cash is useless from a dividend standpoint, and the Treasury market is more overbought than the stock market. However, good blue chips trading way off the highs may be a good answer.

While the rising tide lifts all boats metaphor is usually correct, there are plenty of solid companies, some that reported great earnings, that are trading way below 52-week highs. In fact we screened the Merrill Lynch research database and found four stocks rated Buy with dividends of at least 4% that fit in the not-overbought club, and they have solid upside to the current price targets: CenturyLink Inc. (NYSE: CTL), General Motors Co. (NYSE: GM), Invesco Ltd. (NYSE: IVZ) and Kohl’s Corp. (NYSE: KSS).

Source: 24/7 Wall Street

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