These 4 stocks are trading below book value and pay over 3% dividend

The book value of a company is basically what you’re left with when you subtract all of its assets from all of its liabilities. There are other, more sophisticated formulas for determining this value, but this is the general, easiest-to-understand idea. Benjamin Graham wrote a lot about this in his classic investing books, Security Analysis and The Intelligent Investor.

Wall Street lost interest in the concept years ago when the big tech and social media companies took off and analysts considered book value old-fashioned – interesting, but not useful for hunting hot growth stocks.

Currently, NVIDIA’s price-to-book ratio is 65, Meta Platforms’ 59, and Microsoft’s 34. The current growth mania knows no old-fashioned values.

Yet there are still stocks with a price-to-book ratio of less than 1 – that is, astonishing as it may seem, they are trading for less than their book value. And not only that: some pay dividends of 3% or more.

4 NYSE shares below book value with 3% dividend.

Avangrid (NYSE: AGR) owns and operates 8 electric and natural gas utilities serving more than 3.3 million customers in New York and New England. Headquartered in Orange, Connecticut, the company also owns and operates a portfolio of renewable energy assets.

The market capitalization is $13.75 billion. The stock is trading at 69% of its book value, the price-to-earnings ratio is 15.42. The debt-to-equity ratio is 0.66. Earnings have grown 7.02% this year and 1.11% over the past 5 years. Avangrid pays a dividend of 4.95%.

Costamare (NYSE: CMRE) is a Monaco-based shipping company that owns and charters container ships. In business since 1975, the company now owns a dry cargo fleet of 39 vessels and serves short, medium and long-haul routes around the world.

Earnings have grown by 48.55% this year. Over the past 5 years, the EPS growth rate is 54.70%. The company’s market capitalization is $1.81 billion. With a price-to-earnings ratio of 5.86, the stock is trading at a 20% discount to book value. Costamare pays a dividend of 3.03%.

KT Corporation (NYSE: KT) is a South Korean telecommunications company that provides voice and text services and DIGICO, a digital platform that provides original content and logistics, among other services. KT has 17.155 million subscribers, making it the third-largest provider in South Korea.

The market capitalization is $6.59 billion. The earnings this year have grown by 20.04% and in the last 5 years by 3.60%. The stock is currently trading at 53% of its book value and has a price-to-earnings ratio of 8.19. The debt-to-equity ratio is 0.67. KT Corporation offers investors a dividend of 5.30%.

Safe Bulkers (NYSE: SB) is a maritime shipping company headquartered in Monaco. The company owns and operates 46 vessels and specializes in the transportation of dry bulk cargoes. The products transported worldwide are mainly coal, grain and iron ore.

The stock is trading at a 20% discount to book value and a price-to-earnings ratio of 8.31. The market capitalization is $599.99 million. Earnings are up 58.79% this year and 30.64% over the past 5 years. The debt-to-equity ratio is 0.67. Safe Bulkers pays a dividend of 3.56%.

Statistics courtesy of FinViz.com. Charts courtesy of Stockcharts.com.

No artificial intelligence was used in the creation of this text.

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