Boring But Beautiful: Our Latest 3 Bargain Dividend Stocks
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How boring can you get?
A company that packages up financial products for community banks.
A company that manufactures mattresses for baby cribs.
And a company that makes signs for gas stations.
They’re not thrilling, but they pay dividends. And you can buy each one of these “boring” dividend stocks for less than $10.
What If You Ran A Small Town Bank?
There’s something you’d figure out in a hurry.
The only way you compete against the big guys is with your service.
But no matter how friendly your loan officers and your tellers are, you still need something to sell… home equity lines of credit, money market accounts, and all sorts of fiduciary services.
You get these retail and commercial banking products and services from a company like First Busey Corporation (BUSE).
Like everybody else in the banking business, First Busey has been through a rough stretch. Sales are skidding, off 9% over the past five years.
But the company pays a nice dividend, and even though sales are sluggish and the stock price is down, some good things are happening.
Important things… the company is strengthening its balance sheet and reducing its long-term debt.
And while its profit margins aren’t anything to brag about, First Busey is trending in the right direction, growing its margins and becoming more profitable.
If you like the future of America’s small town banks, you’ll like First Busey.
First Busey Corp (BUSE)
Dividend Yield: 3.62%
Annual Payout: .20
Payout Ratio: 54.1%
When Babies Burp, Investors Get Paid
Bedding and blankets for infants and toddlers. Changing mats, bibs, burp cloths, and toilet seat covers.
Products like this aren’t exotic. But they are essential, and that’s why Crown Crafts, Inc. (CRWS) plugs away growing its revenue and paying dividends. Sales are increasing and so is income.
There is zero long-term debt. And earnings per share have been going up.
This is one of those companies that quietly flies under the radar. Not many analysts follow it, and it’s thinly traded, usually less than 25,000 shares a day.
But if you’re the kind of investor who loves a simple business where next quarter’s earnings don’t depend on a technology breakthrough, you’ll love Crown Crafts.
Crown Crafts, Inc. Com. (CRWS)
Dividend Yield: 4.12%
Annual Payout: .32
Payout Ratio: 49.2%
Does The CFO Know Something Most Investors Don’t?
You pull into the gas station at night, and the big sign that’s lit up on the canopy over the pumps is blazing away.
Or you’re at the counter in a fast food place checking out the menu on the sign.
Chances are good you’re looking at something built by LSI Industries (LYTS).
LSI manufactures all kinds of backlit LED signs. The company markets its products to commercial and industrial facilities, gas stations, convenience stores, restaurants, car dealerships, and sports and entertainment venues.
The past few years have been a bit rugged for LSI. The big question is what kind of sales growth the company can deliver. Most analysts are skeptical.
The company is struggling to make money. But we like the looks of the company’s balance sheet. Even if sales over the next few years are rugged, and even if it’s tough to increase margins, LSI’s financial house is in order.
We also like to see a company’s CFO buy his company’s stock, which happened at LSI this summer.
So, what do you think the sign outside the LSI headquarters in Cincinnati should say?
How about, “You can buy our stock for less than ten bucks, and we pay a decent dividend.”
LSI Industries (LYTS)
Dividend Yield: 2.72%
Annual Payout: .20
Payout Ratio: 50.0%
Category: Dividend Stocks
