3 High-Yield Stocks at Rock-Bottom Prices

Buying cheap dividend stocks is a great way for investors to maximize their potential earnings. Not only can they benefit from a good dividend yield but they can also position themselves to earn some good returns, especially with stocks that may not be trading all that high and have lots of room to rise in value. Below are three stocks that pay more than 4% in dividends and that could also be good value buys for investors today…

1. Enbridge

Enbridge (NYSE:ENB) is a blue-chip oil and gas stock that has been one of the more stable buys in the industry over the past few years. Up 13% in just the past year, Enbridge hasn’t outperformed the S&P 500 and its 26% returns over that timeframe, but it’s still a good result, especially as peers of the Canadian-based stock have struggled in recent years.

Not only is the company profitable, but Enbridge’s dividend remains one of the better ones in the industry. Currently yielding a dividend of just over 6% per year, the company hiked its payouts back in December, from quarterly payments of 0.738 Canadian dollars to CA$0.81. That’s an increase of 9.8%. Over five years the company’s payouts have increased by 74%, averaging a compounded annual growth rate (CAGR) of 11.7%.

With the stock trading at a forward price-to-earnings ratio (P/E) of 20 and just 1.8 times its book value, Enbridge is still a very cheap buy today. A big reason behind that is the risks involved in oil and gas today; many investors want to stay away from the industry as much as possible. However, Enbridge is one of the safer buys investors can make in oil and gas, and it’s an opportunity to scoop up a great dividend at an even better price.

2. Medical Properties

Medical Properties Trust (NYSE:MPW) is in a more stable industry than Enbridge, so it’s no surprise that investors have been more bullish on the stock. It’s generated returns north of 32% and well in excess of not just Enbridge, but the S&P 500 as well. The stock also offers geographical diversification, with properties in many states across the U.S. as well as Germany, Spain, and the U.K.

Although its dividend yield of 4.8% is a bit lower than Enbridge’s, Medical Properties makes up for that with the recurring income and stability the stock offers investors. Currently, the company pays its shareholders a quarterly dividend of $0.26 and it too has increased its payments over the years. In five years, Medical Properties has increased its payments by 24%, from its payouts of $0.21 in 2015. That averages out to a more modest CAGR of 4.4%.

Like Enbridge, Medical Properties stock is also trading at some decent multiples, with its forward P/E around 20 and its price-to-book multiple a little lower at 1.7. This low-volatility stock can be a great way to balance out some of the risk investors may have in their portfolios with a stock like…

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