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Ainsworth Game Technology and Sandfire Resources are dividend stocks on my list that are potentially undervalued. This means their current share prices are trading well-below what the companies are actually worth. Investors stand to gain a constant stream of dividend income over time as well as expected capital gains through share price appreciation. Here are three undervalued dividend stocks that could be valuable additions to your current holdings.
Ainsworth Game Technology Limited (ASX:AGI)
Ainsworth Game Technology Limited designs, develops, produces, leases, sells, and services gaming machines, and other related equipment and services. Ainsworth Game Technology was formed in 1995 and with the company’s market capitalisation at AUD A$400.61M, we can put it in the small-cap stocks category.
Over the past 5 years, Ainsworth Game Technology has been distributing dividends back to its shareholders, with a recent yield of 2.50%. At the current payout ratio of 17.73%, AGI’s yield exceeds Australia’s low risk savings rate of 2.48%. Analysts forecast future payout ratio to be 57.06%, indicating that AGI’s upcoming dividend payments are well-covered by earnings. In addition to this, AGI is also trading below its intrinsic value by 54.40%, meaning AGI can be bought at an attractive price right now. Dig deeper into Ainsworth Game Technology here.
Sandfire Resources NL (ASX:SFR)
Sandfire Resources NL engages in the exploration and evaluation of the mineral tenements in Australia and internationally. Sandfire Resources is headed by CEO Karl Simich. With a current market cap of AUD A$1.31B, we can put SFR in the small-cap stocks category
Over the past 4 years, Sandfire Resources has been distributing dividends back to its shareholders, with a recent yield of 2.54%. At the current payout ratio of 32.57%, SFR’s yield exceeds Australia’s low risk savings rate of 2.48%. Analysts forecast future payout ratio to be 29.10%, indicating that SFR’s upcoming dividend payments are well-covered by earnings. In addition to this, SFR is also trading below its intrinsic value by 62.76%, meaning SFR can be bought at an attractive price right now. More on Sandfire Resources 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. Started in 1952, and headed by CEO Shane Stephan, the company currently employs 566 people and with the market cap of AUD A$1.90B, it falls under the small-cap group.