Garmin Ltd. (GRMN), Foot Locker, Inc. (FL): Three Under the Radar, Cheap Dividend Stocks

Making things even better, the company is generous to its shareholders. Foot Locker raised its dividend 9% last year and recently increased its dividend another 11%. The new $0.80 per share annualized dividend represents a yield of nearly 2.5% for new investors. Furthermore, along with the dividend increase, the company announced it had authorized a new $600 million share repurchasing program to further enhance shareholder returns.

The bottom line

Each of these stocks is a small-cap or mid-cap, meaning they’re probably flying under your radar. It also means that their smaller statures give them the potential for outsized gains in the future, as they have further room to run than their juggernaut competitors. A further benefit is by focusing on attractively priced stocks, your portfolio is less likely to take a nosedive should the market experience a hiccup or two going forward.

Moreover, stocks that pay dividends demonstrate a clear intention of rewarding shareholders with stable returns every three months. You’re probably well aware of the market’s best-known dividend stocks, but you might not be aware of smaller dividend payers such as these. Each of these stocks trades for much more attractive valuations than the S&P 500, which has a P/E of roughly 16, and provides investors with solid dividend yields. In addition, each of these companies is fairly well-known, and carries a brand name that is bigger than their market values might suggest.

The article 3 Under the Radar, Cheap Dividend Stocks originally appeared on Fool.com and is written by Robert Ciura.

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