My Forever Portfolio: 3 Dividend-Paying Value Stocks That Are Too Cheap to Ignore.
Altria, Realty Income, and Main Street Capital are all undervalued income plays.
Overview
As the 10-Year Treasury yield tops 5% -- its highest level since 2007 -- it might seem like a bad time to buy blue chip dividend stocks. In this environment, low-risk CDs and T-bills offer higher yields than many dividend stocks, making them the more sensible play for many investors.
However, dividend stocks with yields higher than the 10-Year Treasury but cheaper than the S&P 500 (SNPINDEX: ^GSPC), which has a forward price-to-earnings ratio of 19, could still hold up well in this challenging market. These three stocks in my portfolio fit that description: Altria (NYSE: MO), Realty Income (NYSE: O), and Main Street Capital (NYSE: MAIN).
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Originally published at www.fool.com.