Ford Motor Company (F), Lorillard Inc. (LO) & Three Value-Oriented Consumer Stocks Yielding Over 3%

Pitney Bowes

This name has been a poor long-term performer, falling around 59% over the last five years. The reason for the stock’s poor performance has been a steady trend of falling sales at the customer communication technologies company. In each of the last five years, Pitney Bowes Inc. (NYSE:PBI) has seen its revenue decline, although the company remains solidly profitable. Net income trends at Pitney Bowes have been relatively stable in recent years which has allowed the company to payout a very generous dividend, which it has increased slightly in recent years. At current levels, Pitney Bowes is yielding over 10%, which has captured the interest of many investors.

Although the long-term trend in the shares has been down, Pitney Bowes has jumped sharply in 2013 from multi-year lows seen at the end of 2012. Year-to-date, the stock is up roughly 35%. Due to declining sales at the Stamford, Connecticut-based company, Pitney Bowes Inc. (NYSE:PBI)’s valuation is very conservative with the stock trading at a trailing P/E of just 6.50. Although this is a risky name for investors to bet heavily on due to falling revenue and a poor track record in recent years, the stock’s dividend yield may be too attractive to pass up in the current interest rate environment.

Time to buy?

Value-oriented investors looking for high-quality companies trading at reasonable valuations should certainly be interested in both Ford Motor Company (NYSE:F) and Lorillard Inc. (NYSE:LO). These are leading brand stocks that are in well-established, long-term uptrends and are trading at relatively inexpensive valuations. Both stocks also provide investors with healthy dividend yields. Pitney Bowes Inc. (NYSE:PBI), on the other hand, has been experiencing fairly significant operational headwinds in recent years which could make the stock a risky investment. Investors who are primarily focused on yield, however, should absolutely do more research on this name. The stock has one of the highest yields in the market and the company’s cash flow situation suggests that the dividend is safe under current conditions.

The article 3 Value-Oriented Consumer Stocks Yielding Over 3% originally appeared on Fool.com and is written by Ryan Glosier.

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