6 Safe Dividend Stocks With Strong Value Characteristics
Published Jul 10, 2011 on Seeking Alpha

When investing for income, it is of course necessary to look beyond dividend yield at the underpinnings of the dividend and the company itself. Is the dividend secure for the short term? Will future cash flows cover stable, or even increased dividend payments? And is there a possibility of principal appreciation in addition to our income?The following list offers 6 profitable companies with little or no debt, strong cash positions, and solid dividend yields. These companies appear undervalued on an enterprise basis and thus, not only provide security of income, but a real chance for capital appreciation. 1. American Eagle Outfitters (AEO) Closing Price 7/8: $13.88 Dividend Yield: 3.17% AEO has had a nice bounce off of 10-month lows set in June, pushing up about 10%, thanks in large part to strong same-store sales from not only AEO, but Target (TGT), the Limited, and others. Going forward, strong improvement... Read more