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When to Snatch Up Dividend Stocks: Telekom, Coca-Cola, and Mowi
Investing in dividend stocks is all the rage, and for good reason! Even though tech-centric indices have taken a beating, dividend stocks have stood strong, with some even posting gains. It's time for investors to smarten up their portfolios by snagging value stocks. However, eager investors might overpay for some formerly cheap stocks. Here are three dividend stocks you shouldn't miss out on:
Telekom
German powerhouse Telekom is a crowd favorite, especially among dividend investors, thanks to its deferred tax advantage. The stock has been on an upward swing since t-mobile's strong results, racking up a 15% gain since the year's start, eerily close to breaching the 20-euro mark for the first time since 2001.
Rather than buying the stock because it's becoming too expensive, do so because surpassing that magical mark could lead to a price rally, making it expensive from a valuation perspective.
Coca-Cola
On the contrary, Coca-Cola's stock is already overpriced, boasting a P/E ratio of 25. This valuation hasn't been this cheap in the grand scheme of things since 2015. Move swiftly on this one, as the minuscule discount on the historical P/E ratio of 27 or higher won't stick around forever.
Mowi
If time is of the essence for your investment decisions, Mowi's stock might be more your speed. The salmon farming heavyweight took a hit due to announcements of special taxes, which brought its valuation down to a P/E 15—far cheaper than its historical norm of 20 or more.
Though the attractive price might persist for a while, fair-weather investors should act quickly. Besides a bargain price, Mowi offers a not-to-be-missed 4.5% dividend yield.
Disclosure:
The CEO and majority shareholder of the publisher Boersenmedien AG, Mr. Bernd Foertsch, has direct and indirect positions in Deutsche Telekom, which could profit from the article's publication.
The author has direct positions in Deutsche Telekom and Mowi, benefiting from the potential price movement resulting from the article's publication.
- Given the current trend, it might be an interesting time to consider investing in dividend stocks, such as Telekom, which has seen a 15% gain this year.
- Despite being a crowd favorite, Telekom's stock is approaching a price of 20 euros for the first time since 2001, which could lead to a price rally and make it expensive from a valuation perspective.
- On the other hand, Coca-Cola's stock is already overpriced, with a P/E ratio of 25, a level not seen since 2015.
- In the realm of personal-finance and technology, Mowi's stock offers a lower price with a P/E of 15 and a not-to-be-missed 4.5% dividend yield.
- It's important to note that the author has direct positions in Deutsche Telekom and Mowi, which could benefit from the potential price movement resulting from the article's publication.
