Dividendology: 3 Dividend Stocks Near a 52 Week Low!

Investors often consider dividend stocks for a number of reasons. The first is that a dividend is a cash payment. That’s outside the uncertainty of volatile price movements.

The second is that dividend stocks tend to represent companies with a stable business. There are predictable cash flows that can create some relative certainty. And while the underlying company may no longer be a big growth stock, they can grow the dividend with small and steady growth over time.

Right now, a number of dividend-paying companies are trading near 52-week lows.

These companies have been hit by the market selloff. Meanwhile, they’ve been hit by a slowing economy. That may be creating a good buying point for patient investors.

However, some companies may also be in bigger trouble and could face a dividend cut. So, it’s important investors know what to look for before buying a company for its dividend.

For example, chipmaker Intel (INTC) has seen shares slide nearly 50 percent this year. That’s pushed the dividend yield up to over 5 percent right now.

While that’s a high yield, the stock’s payout ratio is at about 44 percent. That means that the company is paying out just under half of its earnings to shareholders. For a slower-growing chip company, that’s a sustainable dividend.

To discover the other two dividend stocks near 52-week lows, click here.