4 Highly Undervalued Stocks With Rising Dividends, Falling Payout Ratios

The payout ratio (or dividends/earnings) indicates how much of a company’s earnings are paid back to shareholders in the form of dividends. Very high payout ratios are considered unsustainable and a threat to a company’s dividend yield.We ran a screen on highly undervalued companies, with lower TTM P/E, TTM P/CF, and PEG than their industry peers. We screened these companies for those seeing significant increases in dividend per share, while also seeing a decrease in the payout ratio.This implies an increase in earnings and an increase in dividends, without sacrificing the sustainability of the dividend yield. Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the 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 the list relative... Read more