These 3 Low P/E Stocks Trade Below Book Value And Pay Dividends

These are value stocks. You can tell by the low price-earnings ratio, the fact that they are now trading below their book value and that they pay dividends to their investors. Obviously there’s more to a value stock but if you start with those 3 basic factors, you’re probably on your way to the right stuff.

These are not growth stocks (at least not right now.) It’s unlikely that the business they’re in or their way of doing business will make your heart beat faster and your breathing heavier. It’s unlikely you’ll want to brag to your friends about the fabulousness of these. The fact is, they are not fabulous, they’re just value.

These are boring up until the time someone buys them out at book or greater than book value (no guarantees). Then, they’ll begin to seem less boring. In the meantime, all an investor can do is sit tight and collect the boring dividend payment checks. This could go on for years and years. If you’re in a hurry, stop reading here.

Associated Ban-Corp (NYSE: ASB), with headquarters in Green Bay, Wisconsin, this regional bank also operates in Illinois and Minnesota. In business, under one name or another, since 1861 the bank now has assets of $31 billion.

The stock trades with a price-earnings ratio of 11, much lower than the p/e of the Standard & Poor’s 500 which now sits with a p/e of 20.98 and a Schiller p/e (”cyclically adjusted”) of 29.53. Associated Ban-Corp is priced by the market at a 3% discount to its book value.

Earnings this year increased by 17% and the past 5-year EPS growth rate is 11.60%. The bank’s shareholder equity vastly exceeds its long-term debt. Average daily volume for Associated Ban-Corp on the New York Stock Exchange is 1.32 million. The company pays a dividend of 3.45%.

FinVolution Group (NYSE: FINV) is China-based, in business since 2007, “connecting underserved borrowers with financial institutions,” according to the firm’s website. Obviously, an investor would want to keep a close eye on the actions of China’s central bank and on U. S./China relations.

Now trading with a price-earnings ratio of just 3.96 and at 75% of its book value, the stock is likely showing up on the screens of value investors. The bank holds no long-term debt. This year’s earnings are up 27.90% and the past 5-year earnings show growth of 113%.

Average daily volume is a relatively light 561,000 shares. Institutions own about 40% of the total float. Investors are being paid a 4.61% dividend. At the beginning of June, Citigroup
C
analysts upgraded their opinion of FinVolution Group from “neutral” to “buy” and increased their price target from $3.27 to $5.33.

Invesco

IVZ
Limited
(NYSE: IVZ), with headquarters in Atlanta, Georgia, and a global presence, is a money management firm now holding $1,360 billion in assets. The Standard & Poor’s 500 component operates under the names Invesco, Powershares, WL Ross and Trimark.

The stock trades at 81% of its book value and with a price-earnings ratio of 9.66. The forward p/e is 11.43. Earnings per share this year are up by 164%. The past 5-year growth rate is 7.80%. The company’s long-term debt exceeds it shareholder equity. Institutions own 97% of the total float.

Average daily volume for Invesco is 5.44 million shares making it highly liquid for those large investment firms who look for that factor. The company pays a dividend of 3.88%. In late October, Credit Suisse downgraded the stock from “neutral” to “underperform” and reduced its price target from $13 to $11.50.

Not investment advice. For educational purposes only.

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