3 big dividend stocks at bargain prices

Use Benjamin Graham’s “Mr. Market” investing idea to take advantage of lower prices.

In between reporting seasons there’s not a lot of exciting news coming out to keep the S&P ASX All Ordinaries Index (ASX: ^AORD) driving upwards. Stocks can meander and investors lose their focus.

Since the stock market is merely a daily auction of shares, a buyer gets better prices at dull, boring auctions, whereas hot auctions usually go up and up.

Benjamin Graham, considered one of the fathers of value investing, used the manic-depressive character called Mr. Market to illustrate this point.

Every day your business partner, Mr. Market, comes by offering to sell you his holdings. Each day’s price is different, though, depending on whether he is ecstatically high or depressed. You simply take advantage of Mr. Market’s lower prices when he’s down and bored.

Even good dividend stocks slip, so when they do, you can get a better yield and eventually enjoy the ride back up when more exciting earnings news comes. Here are a few high dividend stocks that could be at bargain prices.

Premier Investments Limited (ASX: PMV)

This clothing retailer has a number of well-known brands like Just Jeans, Jay Jays, Portmans, as well as the very successful Smiggle stationery store that is expanding widely into the UK now. The stock is recovering from an $8 low and its dividend is 4.6% fully franked.

Leighton Holdings Limited (ASX: LEI)

The big engineering and construction company has improved in share price since a new CEO came in and started plans for a business restructure. It’s still early days, however it may be an opportunity to start a position as more infrastructure and LNG related work offsets the mining pullback. It has a 5.4% yield partially franked.

Iress Ltd (ASX: IRE)

The provider of wealth management, financial planning and trading platforms such as XPLAN does steady business with rising financial markets and more managed investments like Super. It has a 4.6% yield partially franked. Earnings are forecast to rise by some analysts, but the stock has been flat recently.

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Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

Motley Fool contributor Darryl Daté-Shappard does not own shares in any company mentioned. 

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