The search for the next high-flying growth stock like Nvidia (NVDA - Free Report) and Micron (MU - Free Report) has consumed plenty of investors’ attention right now, but tried-and-true strategies like income investing—which can include a focus on fixed-income securities, as well as dividend stocks—are still popular among many.
Targeting stocks with high dividend yields is solid investment strategy because these companies provide investors with a steady stream of income, which can easily be reinvested in an effort to boost returns. What’s more, companies that offer large dividends tend to be financial stable, providing a reliable backbone to any portfolio.
And although the Zacks Rank does not involve dividends, we can still use our proven stock-picking system—which places an emphasis on earnings estimate revisions and earnings performance history—to find quality dividend stocks.
Today we have highlighted three stocks that should pique the interest of any income investor. These stocks each sport a Zacks Rank #1 (Strong Buy) and a respectable dividend yield. Check them out now:
1. Buckle, Inc. (BKE - Free Report)
Buckle is a retailer of medium to better-priced casual apparel for young men and women. The company has certainly not been immune to retail’s woes, but management seems to have things pointed in the right direction. Buckle has surpassed earnings estimates in two consecutive quarters, and our consensus estimate for its upcoming fiscal year has gained five cents over the past 60 days.
On top of this warming sentiment, Buckle has a P/E ratio of just 11.66, and its P/S ratio of 1.00 offers more evidence that its shares are undervalued right now. Furthermore, the company is generating $2.80 in cash per share right now, outpacing the “Retail – Apparel and Shoes†industry’s average of $1.50.
But most importantly for income investors, Buckle currently offers a dividend yield of 5.26%.
