For Immediate Release
Chicago, IL – February 11, 2025 – Zacks Value Trader is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: https://www.zacks.com/stock/news/2413076/3-value-stocks-with-juicy-dividends
3 Value Stocks with Juicy Dividends
Welcome to Episode #395 of the Value Investor Podcast.
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- (0:45) - Searching For Stocks That Have Strong Income
- (7:35) - Tracey’s Top Stock Picks
- (24:00) - Episode Roundup: ADM, UBS, BIP
- Podcast@Zacks.com
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
Recently, a podcast fan wrote in to Tracey requesting a show on value stocks that also pay big dividends.
For those investors looking for income, that would be the best of all worlds. A cheap stock that will pay you a lot of cash.
Screening for Top Value Stocks with Dividends
To find value stocks, Tracey used a price-to-earnings (P/E) ratio of 15 or under. A P/E of 15 or lower is usually considered to be a value stock.
For the dividend, the screen looked for a 3% yield or higher, which Tracey considers to be “juicy” for investors.
To find top stocks, the screen included Zacks Ranks of #1 (Strong Buy) or #2 (Buy). These are the highest Zacks Ranked stocks and usually indicates analysts are raising their earnings estimates.
This screen returned 113 stocks with many being in the usual “high dividend” categories including banks, real estate investment trusts (REITs), and master limited partnerships (MLPs.)
3 Value Stocks with Juicy Dividends
1. Archer Daniels Midland, Inc. ADM
Archer Daniels Midland had the coveted Zacks #1 (Strong Buy) rank when the podcast was recorded but that has dropped to a #2 (Buy) stock. 2025 looks challenging as the company guided light for the year due to weaker market fundamentals and ongoing biofuels and trade policy uncertainties.
But Archer Daniels Midland is cheap, with a forward P/E of just 10.4. It also recently raised its dividend by 2%. Archer Daniels Midland’s dividend is now yielding 4.2%.
Should a nutrition company like Archer Daniels Midland be on your dividend short list?
2. Brookfield Infrastructure Partners L.P. BIP
Brookfield Infrastructure Partners is a REIT which owns global infrastructure networks in energy, water, freight, passengers, and data. In its Q4 earnings press release, Brookfield Infrastructure Partners said 2025 was off to a great start.
Earnings are expected to rise 10.6% in 2025. Brookfield Infrastructure Partners is cheap with a forward P/E of 9.5. It is shareholder friendly and aims to grow its distribution yield by 5% to 9% annually.
Is a REIT such as Brookfield Infrastructure Partners the perfect way to play the global AI infrastructure build-out and get income?
3. U.S. Bancorp USB
U.S. Bancorp is a large regional bank headquartered in Minneapolis. Earnings are expected to jump 10% both in 2025 and 2026.
While U.S. Bancorp does have a low P/E of just 10.8, for banks, it is wise to also look at the price-to-book (P/B) ratio. A P/B ratio near 1 means a bank is cheap and near 2 means it’s fairly valued. U.S. Bancorp has a P/B of 1.4.
U.S. Bancorp is shareholder friendly. In addition to paying a dividend yielding over 4%, it started a $5 billion share repurchase program in the fourth quarter of 2024.
Should a big bank like U.S. Bancorp be back on your short list?
Want Even More Cheap Stocks with Big Dividends?
Tracey’s Market Edge Podcast, episode #433 entitled “5 Top Stocks with Big Dividends”, which she also did the week of Feb 3, 2025, has five more top stocks that pay big dividends. While she didn’t screen for value stocks, the stocks in the podcast were mostly cheap.
Those 5 stocks had dividends yielding over 4%.
You can see those stocks on the Video Podcast on Youtube here.
What Else Should You Know About Value Stocks with Big Dividends?
Tune into this week’s podcast to find out.
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Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Insider Trader and Value Investor services. You can follow her on twitter at @TraceyRyniec and she also hosts the Zacks Market Edge Podcast on iTunes.
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