If you’re in search of an inexpensive stock that can also provide dividend income, you’ve come to the right place. I scoured the market and compiled a list of three dividend-paying stocks that are trading at inexpensive valuations compared to their five-year averages, so let’s take a closer look at each to determine if you should buy one or more of them today.
1. Maple Leaf Foods Inc.
Maples Leaf Foods Inc. (TSX:MFI) is one of Canada’s largest manufacturers and distributors of consumer packaged meats. At today’s levels, its stock trades at 31.9 times fiscal 2015’s estimated earnings per share of $0.75 and 20.3 times fiscal 2016’s estimated earnings per share of $1.18, both of which are inexpensive compared to its five-year average price-to-earnings multiple of 33.6. In addition, the company pays a quarterly dividend of $0.08 per share, or $0.32 per share annually, giving its stock a 1.3% yield.
2. Mediagrif Interactive Technologies Inc.
Mediagrif Interactive Technologies Inc. (TSX:MDF) is one of the leading providers of information technology in Canada. At current levels, its stock trades at 16.6 times fiscal 2015’s estimated earnings per share of $1.08 and 15.6 times fiscal 2016’s estimated earnings per share of $1.15, both of which are inexpensive compared to its five-year average price-to-earnings multiple of 22.8. Also, the company pays a quarterly dividend of $0.10 per share, or $0.40 per share annually, which gives its stock a 2.2% yield.
3. AlarmForce Industries
AlarmForce Industries (TSX:AF) is one of the leading providers of home security, two-way emergency response, and video surveillance systems in North America. At today’s levels, its stock trades at 18.5 times fiscal 2015’s estimated earnings per share of $0.57 and 17.6 times fiscal 2016’s estimated earnings per share of $0.60, both of which are inexpensive compared to its five-year average price-to-earnings multiple of 50.9. Additionally, the company pays a quarterly dividend of $0.045 per share, or $0.18 per share annually, giving its stock a 1.7% yield.
Could your portfolio use one of these stocks?
Maple Leaf Foods, Mediagrif Interactive Technologies, and AlarmForce Industries are three of the top value plays in their respective industries. Foolish investors should take a closer look and strongly consider establishing long-term positions in one or more of them today.
