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Capital gains and dividend income are the two main ways investors reap benefits from investing in the stock market. With stocks such as Inghams Group, investors can have the best of both world by buying dividend payers when they’re deemed undervalued. Today I will share with you my mispriced dividend-paying companies you should be considering for your portfolio.
Inghams Group Limited (ASX:ING)
Inghams Group Limited, together with its subsidiaries, produces and sells poultry in Australia and New Zealand. The company was established in 1918 and with the company’s market cap sitting at AUD A$1.29B, it falls under the small-cap stocks category.
Inghams Group has been paying dividend over the past 1 years. It currently paid an annual dividend of AU$0.19, resulting in a dividend yield of 5.59%. ING’s yield exceeded Australia’s top dividend payer average yield of 5.16%. The company’s payout ratio currently stands at 61.19%, illustrating that its dividend payments are well-covered by its earnings. ING is trading beneath its true value by 43.03%, meaning that now is a good time to buy ING at a good price. Interested in Inghams Group? Find out more here.
Super Retail Group Limited (ASX:SUL)
Super Retail Group Limited operates as a retailer of auto, leisure, and sports products in Australia, New Zealand, and China. Started in 1972, and now led by CEO Peter Birtles, the company provides employment to 12,000 people and with the market cap of AUD A$1.34B, it falls under the small-cap stocks category.
Super Retail Group has been paying dividend over the past 10 years. It currently paid an annual dividend of AU$0.47, resulting in a dividend yield of 6.84%. Best dividend payers in Australia, on average, yield 5.16%. SUL exceeds this by 1.68%, and according to industry analysts, its future payout ratio should still allow this yield to hold. This is consistent with the growing dividend trend we’ve observed from SUL over time. SUL is also trading below its intrinsic value by 41.82%, which means SUL is currently an attractive buy for those looking for dividend and capital gains. More on Super Retail Group here.
New Hope Corporation Limited (ASX:NHC)
New Hope Corporation Limited explores, develops, produces, and processes coal, and oil and gas in Japan, Taiwan, China, Chile, Korea, and Australia. Founded in 1952, and currently headed by CEO Shane Stephan, the company now has 566 employees and with the stock’s market cap sitting at AUD A$1.75B, it comes under the small-cap category.
New Hope has been paying dividend over the past 10 years. It currently paid an annual dividend of AU$0.12, resulting in a dividend yield of 5.71%. Its dividend yield exceeds the top dividend-paying companies in Australia, with the average dividend yield of 5.16%. Furthermore, its dividend payment has been increasing over time, and analysts expect future earnings to cover this payout moving forward. In addition to this, NHC is also trading beneath its true value by 58.97%, which means NHC is currently an attractive buy for those looking for dividend and capital gains. Continue research on New Hope here.