Disney – An Undervalued Dividend Stock With Growth

By Robert Hauver

Looking for dividend paying stocks with growth at a reasonable price?  The Walt Disney Co., (DIS), which is in the fast-growing Diversified Media industry, has bettered its peers in 2012 for share performance. However, Disney still looks undervalued, on a PEG basis, due to its growth prospects:

DIS-PEG

DIS-BETA

Disney is currently cashing in big-time on the huge hit, “The Avengers”, which has grossed $1.18 billion so far in global ticket sales, making it Disney’s biggest grossing movie of all time, even higher than any of its successful “Pirates Of The Caribbean” films – sorry pirates… One of Disney’s major ongoing strengths is its ESPN cable franchise, which is the highest paid cable network around, netting over 4 times what other cable channels get paid.   Click here to learn more…

Disclaimer: This article is written for informational purposes only and isn’t intended as investment advice.

Author: Robert Hauver © 2012 Demar Marketing All Rights Reserved

3 Undervalued S&P Dividend Stocks With High EPS Growth & Attractive Option Yields

By Robert Hauver

We screened the S&P 500 this week for low PEG, high EPS growth, low debt, dividend stocks with attractive option yields.  These 3 firms all had strong EPS growth this year, ranging from 46% to almost 400%.  They also are projected to have EPS growth next year of 11% to 16%+, and have similar strong 5-year growth figures, which contributes to their low PEG ratios.

One of these firms, Conoco Philips, (COP), is listed in the Energy section of our High Dividend Stocks by Sector tables. While the other 2 firms, Comcast, (CMCSA), and Prudential, (PRU), don’t have high dividend yields, you can achieve good yields on them by selling covered calls or by selling cash secured puts.

Here are the EPS growth and related PEG ratios for these 3 firms:

COP-CMCSA-PEG

Here are their dividend yields, ROE, debt and profit figures:

COP-ROE

These 3 firms also all have a low dividend payout ratio, ranging from only 8% to 34%. As you can see, these dividend paying stocks don’t have the highest dividend yields around, but you can still earn a respectable yield on them by selling covered call options, which are currently achieving double digit annualized yields of 16%-plus to over 19%:

COP-CMCSA-Calls

(Static Yield also includes the dividends you’d collect before expiration. There’s a breakdown of this in our Covered Calls table).

Likewise, selling cash secured put options can also give you a double-digit annualized yields, while also lowering your breakeven cost:

COP-Pru-Puts

(These put yields are based upon a 100% cash reserve). You can find further details in our Cash Secured Puts table.

If you’re looking for income from dividend stocks that have fared well in this challenging economy, undervalued stocks with good growth prospects offer a good place for further research. Thus far in 2010, growth stocks have outpaced value stocks in large, mid, and small cap stocks.

Disclosure: No positions yet.

Disclaimer: This article is written for informational purposes only, and is not intended as investing advice.