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Buy these stocks for value AND income

Generally speaking, there are two primary approaches to investing. The first approach is to look for stocks that are currently undervalued and have the potential for stock price appreciation, and the second is to look for stocks that can add income to your portfolio, mainly through dividends .

I have written a lot of dividend-related articles, and have also written multiple articles on undervalued stocks. This week I want to combine the two, and look for stocks that can bring both income and value into your portfolio.

For the value part, we will be screening for stocks that have price-to-earnings ratios below 20. In addition, we also want to double check the valuation of some competitors to make sure that a stock is truly undervalued versus its peers.

From an income point of view, we are going to screen for stocks that have dividend yields of at least 2%. In addition, we also want to make sure that we are looking for stocks that have been increasing their quarterly dividends in recent years.

I believe that if we can combine both value and income, we can come up with a group of stocks that have a high probability of outperforming the broader market through the remainder of the year.

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This article was originally published on MarketIntelligeneCenter.com

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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