At a time when a few NASDAQ
NDAQ
The benefit to owning a “below book value” stock is that certain types of institutional investors screen to find them and to sometimes buy them out at a much higher price. While those who own the equity are waiting, it’s nice to be receiving the dividends that are paid.
It doesn’t always work out to perfection, but here are 4 value stocks that may fit the bill:
KB Home
KBH
The company pays a 1.35% dividend. The daily price chart is here:
MGIC Investment Corporation is a specialty insurance firm, or to put it in their words, they provide “products and services that protect mortgage investors from credit losses.” Right now the stock is available for purchase at 94% of its book value. It’s trading with a price-earnings ratio of 5.57.
Shareholder equity greatly exceeds the company’s long-term debt. MGIC Investment is paying a dividend of 2.59%. Here’s the daily price chart:
Eneti Inc is a Monaco-based marine shipping stock which trades at a 48% discount to its book value with a price-earnings ratio of 4.59. Average daily volume is 455,000 shares, relatively light for a New York Stock Exchange listed equity. The company’s long-term debt is greatly exceeded by shareholder equity.
Eneti offers investors a .40% dividend. The daily price chart looks like this:
Radian Group is a mortgage insurance company with headquarters in Wayne, Pennsylvania. The stock has a price-earnings ratio of 6.02 and trades at a 1% discount to book value. Radian pays a dividend of 3.45%.
The daily price chart is here:
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