6 Undervalued Dividend Stocks Hedge Funds Are Buying Up

Do you prefer stocks that offer both value and the potential for growth? We ran a screen with this idea in mind. We began by screening for dividend stocks - those paying dividend yields above 2% and sustainable payout ratios below 50%. We then screened for those that appear undervalued relative to earnings growth, with PEG below 1. We then screened for those with bullish sentiment from institutional investors, with significant net institutional purchases over the last quarter representing at least 5% of share float. This indicates that institutional investors such as hedge fund managers and mutual fund managers expect these names to outperform. (click to enlarge) Do you think hedge funds are calling it right on these names? Use this list as a starting point for your own analysis. List sorted by net institutional purchases over the last quarter as a percent of share float. 1. DDI Corp. (DDIC):... Read more