8 Dividend Stocks With Falling P/E and Rising EPS

When a company’s P/E ratio has fallen over time, while earnings steadily rise, it is a sign that price has not proportionately increased with earnings. In other words, the earnings may not be fully priced into the stock, and the stock may be undervalued. We ran a screen on dividend stocks paying yields above 2% and sustainable payout ratios below 35%. We searched this universe for stocks that have seen a decrease in P/E (comparing the trailing-twelve-month figure to the company’s 3-year average), while also seeing an increase in earnings per share (comparing last year to two years prior). Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research. Your browser does not support iframes. We also created a price-weighted index of the stocks mentioned below, and monitored the performance of... Read more