2 Cheap Dividend Stocks with Yields of Over 6%

In general, stocks that generate profits through dividend payments are more sought after by investors when the market falls. The 2022 bear market also saw record amounts of money flowing into dividend-producing exchange-traded funds (ETFs).

Dividend stocks have cooled off in 2023 as the stock market roars back and investors flock to technology and other growth stocks.

It’s difficult to predict what the market will do this year, but the consensus among experts is that stocks will perform more mutedly. This could result in more demand for high-yield dividend-producing stocks in 2024 than last year. Introducing two low-priced stocks with high dividend yields in 2024.

Sinclair (NASDAQ:SBGI) is a media company that owns 185 television stations in 86 markets as well as several networks, including Tennis Channel, Comet, Charge!, TBD and The Nest. It also owns 21 regional sports networks through Diamond Sports Group, which is in Chapter 11 bankruptcy.

The company currently pays one of the highest yields for stocks that are not real estate investment trusts (REITs) or business development companies (BDCs), which are required by federal law to pay out a higher percentage of their earnings as dividends.

Sinclair pays a quarterly dividend of 25 cents per share, with a high dividend yield of 7.2%. This is a certain percentage of the stock price that goes into dividends. It is currently trading at about $13.45 per share, so if you invested $1,000 in Sinclair, you could buy about 75 shares. At 25 cents per share, those 75 shares would earn you about $1 in dividend income per share per year, or $75 per year. That money can be reinvested in stocks to increase total returns or used to keep it as income.

Sinclair has struggled over the past few years, but analysts believe its stock price will be higher this year because it will benefit significantly from political advertising revenue from TV stations in a presidential election year. The consensus price target is approximately $19 per share, which would represent a 40% increase over the current share price. Longer-term, Sinclair’s outlook is a little more cloudy as the company deals with debt, the bankruptcy of a regional sports network, and other issues. However, earnings should improve over the next 12 months or so and the yield looks attractive for dividend investors. Beyond that, investors will want to monitor how it manages its long-term challenges.

New York Community Bancorp (NYSE:NYCB) made a splash last year when it acquired some of the assets of bankrupt Signature Bank from the Federal Deposit Insurance Corporation. The company acquired approximately $38 billion in assets and $13 billion in loans from Signature. We have locations in New York City and on the West Coast. This innovative deal will not only strengthen our private client business; However, earnings per share are expected to increase by 20% and book value per share is expected to increase by 15%.

This bodes well for the bank’s dividend, which currently pays out 17 cents per share with a yield of about 6.4%. At a stock price of about $10.50 per share, investing $1,000 in New York Community Bancorp would buy about 95 shares. Over the course of a year, those 95 shares will generate approximately $65 in dividend income.

Analysts are optimistic about New York Community Bancorp, as their median price target is $13 per share, which would represent about a 24% increase from the current price. But the stock has a better long-term outlook than Sinclair, as it acquires Signature’s assets and provides a potentially more favorable environment for the bank as interest rates fall, spurring more lending activity and interest income.

Another thing that makes this stock attractive is its incredibly cheap valuation. That’s just 2.7 times earnings, and the stock is trading below book value with a price-to-book ratio of 0.73. This bank is a good buy for both its dividend and long-term growth potential.