4 Great Value Stocks With Over 4% Dividend Yield

The global economic scenario is still volatile with a stronger dollar, lower oil prices, slowdown in the Chinese economy and weak job numbers coming from the U.S. Investors remain cautious ahead of central bank meetings, kicking off with the Federal Reserve’s policy decision on Wednesday, and the Brexit vote on Jun 23, which will decide the fate of Britain's membership in the European Union.

Moreover, investors are a bit anxious following a disappointing Q1 earnings season. Amid the rising volatility, it can be tricky for investors to make profitable investment decisions.

In this scenario, a wise investment decision for the risk averse investors would be to focus on value stocks (the stocks most likely to perform well based on valuation measures) offering high yields. As price appreciation of a stock is largely uncertain, it would be safe to invest in stocks that provide steady income in the form of regular dividends.

Value + Dividend

Opting for value stocks could be a wise idea as value investing offers an opportunity to enter the market and grab stocks that are trading cheap and have been overlooked by a majority of investors. On the other hand, some investors prefer stocks that offer dividend income as part of the total returns.

Stocks that are inexpensive and also offer a decent dividend income are always attractive. This strategy may protect the portfolio from a disaster, in the event of a massive economic downturn.

How to Pick the Best Stocks?

Selecting a dividend stock with cheap price could be a daunting task as one must consider not only the past performance of the company but also its prospects. A stock that has paid huge dividends in the past but may see troubled times ahead will obviously not fit the bill.

The choices could be narrowed down based upon a favorable Zacks Rank #1 (Strong Buy) or Zacks Rank #2 (Buy) and promising value metrics (Value Score of’A’ or ‘B’) using our new style score system. The Value Style Score condenses all valuation metrics into one actionable score that helps investors steer clear of ‘value traps’ and identify stocks that are truly trading at a discount. Our research shows that stocks with a Style Score of ‘A’ or ‘B’ when combined with a Zacks Rank #1 or #2 offer the best of both worlds.

Based upon the above criteria, we have selected four stocks that could be promising picks. Not only do these stocks have a favorable Zacks Rank but also a value score of ‘A’ and a dividend yield of greater than 4%.

4 Stocks to Bet On

BG Staffing, Inc. (NYSE:BGSF) is a national provider of temporary staffing services across a diverse set of industries. It offers commercial and professional temporary staffing, temp-to-perm, and permanent placement services to a variety of industries.

This Zacks Rank #1 stock has a Zacks Value Style Score of ‘A.’ It has a dividend yield of 6.85%.

LPL Financial Holdings Inc. (NASDAQ:LPLA) is engaged in providing an integrated platform of brokerage and investment advisory services to independent financial advisors and financial advisors at financial institutions in the U.S.

This Zacks Rank #1 stock appears to be a solid pick with a Zacks Value Style Score of ‘A’ and a dividend yield of 4.10%.

Enviva Partners, LP (NYSE:EVA) is a master limited partnership which owns and operates wood pellet production plants.

This Zacks Rank #2 stock appears to be a solid pick with a Zacks Value Style Score of ‘A.’The company has a dividend yield of 8.73%.

Manning & Napier, Inc. (NYSE:MN) operates as an investment advisor engaged in managing corporate and union pension and annuity funds, endowment funds, foundations, profit sharing plans and benefit plans.

This Zacks Rank #2 stock has a Zacks Value Style Score of ‘A.’ It has a dividend yield of 7.77%.

To Conclude

Till the time Fed provides clarity on interest rates and the volatility in oil price ceases, markets will continue to face severe downside risks. The long-term view remains positive. But in the current environment these stocks may be good choices for investors.