5 Value Stocks Paying 3+% Dividends

Stats courtesy of FinViz.com.

Old school investing.

That’s the school favored by Warren Buffett, Charlie Munger and as elucidated by Benjamin Graham in his investment classic The Intelligent Investor. You aren’t likely to find any of these equities on “exciting hot growth ideas” lists. Matter of fact, I guarantee you won’t.

Some of these have relatively light volume which might help to keep away annoying institutional investors who need liquidity. All of these pay dividends in excess of 3%, an unusually attractive metric given the paltry yield on government bonds lately.

Value stocks tend to show up in mostly ignored or way out-of-favor sectors. Take a look.

Crown Crafts.

The apparel manufacturer trades with a price/earnings ratio of just 10 and at 1.75 book value. This year’s earnings are very good. The 5-year record is positive. Crown Crafts’ shareholder equity greatly exceeds its long-term debt. They are paying a dividend yield of 4.11%. Average daily volume for this NASDAQ traded stock comes to just 25,500.

Donegal Group.

Earnings for the property and casualty insurance company are exceptionally good this year. The 5-year earnings record is green. Shareholder equity exceeds long-term debt. This one is definitely lightly traded with average daily volume of just 42,000 shares. Donegal pays a 4.23% dividend.

Ennis, Inc.

The business equipment and supplies firm trades at 1.4 book with a p/e of 14.3. Earnings are just barely positive for this year as recent quarter-to-quarter sales numbers looked bad. Ennis is fortunate to have no long-term debt, a rare quality for your typical NYSE stock. Investors receive a 5.47% dividend at today’s price.

Jerash Holdings.

The apparel manufacturer is trading at just about book value and with a price/earnings ratio of 12.83. Earnings per share look great for the year and the 5-year record is positive. Jerash has no long-term debt. The company pays a dividend of 3.77%. Average daily volume is a mere 37, 000 shares — basically this NASDAQ NDAQ -3.1% stock trades by appointment.

Kimball International.

It’s a consumer cyclicals stock: they make furnishings, fixtures and appliances. Earnings are positive this year and they’re coming off a good 5-year record. Kimball trades at 1.7 book with a price/earnings ration of 12. The company has no long-term debt on the books. The dividend yields 3.17%. Average daily volume is 217,000 shares.

These are not buying recommendations, but relative cheap stocks. They are examples of companies offering decent dividends in today’s market, if you get capital growth as well, double whammy.