Three Undervalued Stocks With Safe And Growing Dividends

Lock in historically high dividend yields from these three safe and undervalued stocks now while the market is still cheap. Market volatility may be here to stay, but these three stocks can shield your portfolio while also returning above average income.

“Boldness be my friend.” – William Shakespeare

These past six years have been very tough for savers. The Federal Reserve has quintupled its balance sheet to over $4 trillion in an effort to keep interest rates abnormally low in a belief this would help the economy recover from the financial crisis. This zero interest rate policy or ZIRP that was also known as quantitative easing ended in October of 2014. The central bank even managed to raise interest rates for the first time since 2006 in mid-December. The stock markets of the world have not behaved well since that move in what is more than an understatement at the moment.

One impact ZIRP had was to reduce the yield savers and deposit holders were able to receive on their funds. Many stretched into riskier asset classes in the search for any kind of yield. This was one goal of quantitative easing, and one reason stocks, real estate, and other asset classes had such a big run from 2009 through 2014. Unfortunately it, like most government policies, had unintended and disastrous impacts as well.

Many retirees who had previously only held Utility and “Widow and Orphan” stocks primarily for the dividend yield ventured out on the risk curve into asset classes they had never invested in before. In some cases, like in the high yield upstream master limited partner space, that investor who was seeking both “safety” and yield has been crushed.

If there is a light at the end of the tunnel, it is there are many high yielders that have become extremely attractive thanks to the bear markets ripping across most sectors including biotech, pharma, and REITs. Here are a few that I think have a great combination of value, growth, and income right now, and have terrific long-term entry points.