In times of rising interest rates and inflation, investors are looking for solid investment opportunities. Stocks with high dividend yields and low price-to-earnings ratios (P/E) are particularly attractive as they offer both regular income and the potential for capital gains.
High Dividend Yield and Low P/E
A notable example from the UK is the International Consolidated Airlines Group (IAG), which has a P/E ratio of 5.9 and a dividend yield of 3.38%. Despite the volatile markets, the stock has already risen by 5.90% this year.
Other British stocks also stand out: The ETF tracking the FTSE index has gained more than 8%, demonstrating how well dividend stocks can perform.
General Trends and Strategies
Undervalued stocks with low P/E ratios are often traded below their true value and offer long-term growth potential. Telecommunications stocks are particularly known for their attractive dividend yields and low P/E ratios.
Examples from Other Markets
Copa Holdings stands out with a dividend yield of 6.8% and a P/E ratio of 6.5, showing that high returns can also be achieved outside the UK market. Similarly, the Sixt stock performs well with a P/E ratio of 8 and a projected dividend yield of 6.4% for 2026.
In summary, stocks with high dividend yields and low P/E ratios offer an attractive option for investors seeking regular income and positive price developments. However, careful analysis of market conditions and company fundamentals is crucial.