Finding Value In Dividend Payers For April

The recent success of the market has brought many quality companies into overvalued territory. As I look for companies to potentially add to my portfolio in April it has become increasingly difficult to find good deals out there. Fear not fellow value seeking investors, there are still plenty of great companies out there offering some margin of safety and great dividends to boot. We will take a look at Johnson Control (NYSE: JCI), Disney (NYSE: DIS), and Monsanto (NYSE: MON). For this analysis I've decided to use the 5 year averages for P/E and P/CFL provided by FAST Graphs.
Johnson Controls
This $25 billion market cap industrial facing behemoth has an incredibly diverse product portfolio. The company is divided into four segments; buildings, batteries, distributed energy storage and automotive seating. The company is about to complete a merger (tax inversion) with Tyco (NYSE: TYC) which will create a truly massive company.* The company is expecting impressive growth as a result of the merger.
On top of the growth they boast a yield in the 3% range and have grown the dividend payment for six years now. The $1.16 paid to investors each year is incredibly well covered and the payout ratio sits at just 36.8%, plenty of room to run there. Income seeking investors will
Like many industrial companies they've been beaten down lately. With 5 year P/E and P/CFL of 13.8 and 13.9 respectively the company appears undervalued trading at 10.8 and 13.3. Due to the upcoming... Read more