BMO: Undervalued High-Dividend Stocks Primed for Rebound as Yields Top 4%
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Cheap, high-yielding stocks are unusually undervalued currently and poised for a rebound soon, according to BMO Capital Markets.
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The group has suffered recently due to higher interest rates, but BMO believes this selling pressure is unjustified.
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History shows these types of stocks actually tend to perform well when 10-year Treasury yields are above 4%.
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Now is an opportune time to add exposure as the group is especially discounted and has a higher dividend premium.
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BMO identified 17 cheap, high-yielding stocks that are rated Outperform and notes key metrics like forward P/E, dividend yield, and growth rates.