Apple Inc. (AAPL): Just How Expensive Is The Market?

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Ford Motor Company (NYSE:F)

Source: Ford Motor Company (NYSE:F) Company.

  • Current P/E: 9.6, a 48% discount to the S&P 500 P/E
  • Current dividend yield: 2.8%, a 33% premium to the average S&P 500 yield

Before investing in automakers, it’s important to note that the auto industry is quite cyclical, and holding on to shares during the good and bad times is key to being a successful dividend investor with Ford Motor Company (NYSE:F).

There are lots of reasons for Ford Motor Company (NYSE:F) shareholders to be excited: Sales of the F-150 series were up for the 21st consecutive month in April, largely because of the pickup in housing starts. And for the more fuel-conscious driver, the company’s Fusion model has been doing very well.

But what could be a big catalyst in the years ahead are international sales. There’s no doubt that Europe, which had once been a boon to the company, has disappointed in terms of sales. Though losses will probably continue for the next year or so, the company’s restructuring plans in the continent could bear fruit sooner than you might think.

Textainer Group Holdings Limited (NYSE:TGH)

Source: Textainer.

  • Current P/E: 9.7, a 47% discount to the S&P 500 P/E
  • Current dividend yield: 4.6%, a 119% premium to the average S&P 500 yield

Textainer Group Holdings Limited (NYSE:TGH) is a specialist in the worldwide transportation of goods through intermodal containers. They are called “intermodal” because these carriers can be used on ships, trains, and semi-trucks. It might surprise you to know that 95% of all trade worldwide travels by ship, meaning that business itself is highly dependent on the health of international markets.

Though small, Textainer Group Holdings Limited (NYSE:TGH) is one of the best plays within the shipping industry. The company leases out its containers to more than 400 clients worldwide. Having a client list that big is important, because it helps ensure that the containers are always being used, instead of being sent back to headquarters empty (and without much revenue).

The article The 3 Best Dividend Stocks From an Expensive, Low-Yielding Market originally appeared on Fool.com.

Fool contributor Brian Stoffel owns shares of Apple. The Motley Fool recommends Apple, Ford, and Textainer Group (NYSE:TGH) and owns shares of Apple and Ford.

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