There has been a strong selloff over the course of this month but for long-term investors, it might be an opportunity to pick up certain stocks at a discount. Dividend-paying stocks have also been highly attractive among long-term investors and hence, it might be a good idea to consider taking a look at dividend-paying stocks that may be available at a discount following the September selloff. Here is a look at three such stocks.
The lawn and gardening firm Scotts Miracle-Gro has been doing quite well in recent times thanks to the performance of its business unit Hawthorne, which is responsible for helping cannabis producers. The company has a dividend yield of 1.8% and while that is not particularly high, it is above average.
However, more importantly, the company surprised its investors last year by paying a special dividend of as much as $5 a share. Hence, there is always the possibility of earning more from time to time. Scotts Miracle-Gro is growing its revenues at a remarkable rate and in the nine-month period that ended on July 3, it had generated revenues of as much as $4.2 billion, which reflected a year-on-year rise of 29%.
The grocery company Village Super Market might not have generated the sort of growth and margins to match Scotts Mineral-Gro, but when it comes to consistency in dividend payouts it is right up there with most companies. In the previous four quarters, the company has generated profits of $1.35 a share and hence, on an annual basis, Village Super Market has managed to pay out as much as $1 a share. More importantly, the company has also managed to grow and in the most recent quarter that had ended on April 24 it generated revenues of $481 million, which reflected a rise of 5% year on year.
Telecom behemoth AT&T is currently in the process of forming a new company with Discovery. While the move has drawn criticism, it might prove to be an opportunity for investors who are on the hunt for income stocks. The company is expected to payout stable dividends and at the same time explore opportunities to generate growth in the video streaming market. The company has also noted that it is going to pay out 40% to 43% of the free cash flow in the form of dividends and that makes AT&T a potentially attractive proposition.