Milk This Undervalued Cash Cow Blue Chip Dividend Stock For A High Yield Now

You won't find this week's profile stock in our High Dividend Stocks By Sector Tables. In fact, its dividend yield is rather low, even though it does have big recent dividend growth. However, we see two interesting scenarios for this stock: Long term: Due to its steadily growing cash flow, there should be ample room for it to increase its dividends. It also looks undervalued on a 2013 and 2014 PEG basis. Short term: It has high call option prices, which currently pay out over 7% for just a 4-month term, for an annualized yield of over 20%. Rock-Tenn (RKT) is one of the leading manufacturers of corrugated and consumer packaging in the US. With its 2011 acquisition of Smurfit-Stone, it became one of the top 4 players... Read more

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