GenExDividendInvestor: Which of My Dividend Stocks are Cheap Right Now?

Many traders are looking for the next opportunity. Investors might find the best opportunity is one already in their portfolio. That can especially be true with dividend-paying stocks. Especially those that grow their payouts over time.

The market selloff this year has increased the opportunities in dividend-paying stocks. Lower prices can mean higher yields. And for dividend growers, that can be huge for future returns.

So what should investors look for today?

To start, look for a stock that’s trading at least 10 percent under its intrinsic price.

The intrinsic price is a classic measure of value investing. It looks at a stock’s value relative to its assets, or its discounted future cash flows.

A slight discount or even modest premium to the intrinsic value is just a fair price. Investors who already own a stock at a fair price might want to simply reinvest the dividends.

For example, Travelers Companies (TRV), looks fairly priced at today’s prices. Financial stocks may face some pressure going forward. The same is also true of coffee chain Starbucks (SBUX).

However, on a drop closer to their 52-week lows, these companies could drop to a sufficient discount to their intrinsic value to make for a buy.

Investors can also derive value from companies with a buyback program. At today’s prices, many companies aren’t overpaying to retire their own shares. And as that happens, earnings per share can rise, even if a company’s overall profitability doesn’t improve.

To view the full list of cheap dividend stocks now, click here.