Stock Market

Below Book Value And Paying Dividends: 5 Stocks

Each of these stocks is now trading below book value and each one is paying a dividend. These two factors make them likely candidates for the value stock investor, although deeper research is required.

They’re all insurance stocks, too, the type often favored by Warren Buffett and, in the old days, Benjamin Graham.

American International Group
(NYSE: AIG) is trading at just 96% of its book value and with a price-earnings ratio way down there at 3.58. The company is paying a 2.34% dividend. This is a major insurance firm, one of the largest in the world, with life, property and casualty offerings. Credit Suisse maintains a “neutral” rating on AIG as of September 12th, 2022.

The price is lower now than it was at the beginning of the year. Can it regain its momentum?

Jackson Financial (NYSE: JXN) can be purchased at 29% of its book value. It trades with a price-earnings ratio of .50 and a forward p/e of 1.84. The company is paying a dividend of 6.87%. Jackson focuses on the annuity segment of the insurance market with variable, fixed index and fixed. On September 9th, 2022, Jeffries maintained its “buy” rating of the company and raised the price target to $38.

This is another one lower now than it was on January 1st, 2022. From an earlier high of 45 to its present level of 31, that’s a quick 31% drop.

Lincoln National
(NYSE: LNC) is a life insurance firm that now trades at a 9% discount to its book value with a price-earnings ratio of 9.48. Lincoln pays a 3.67% dividend. In May, 2022, Citigroup
initiated analyst coverage with a “neutral” rating and a price target of $56. In June, 2022, Jeffries downgraded Lincoln from “outperform” to “peer perform” and gave it a price target of $53.

The stock is having a tough 2022, dropping from the early-in-the-year peak of 75 down to its current price of 40.

Radian Group
(NYSE: RDN) is a specialty operation focused on mortgage insurance and real estate sector services. The company is available for purchase at 91% of book value and trades with a price-earnings ratio of 5.40. Bank of America
Securities in mid-August, 2022, upgraded Radian Group from “underperform” to “neutral’ with a price target of $24.

Lower highs and lower lows so far in 2022, but the stock seems to be holding up better than its peers, so far.

Unum Group (NYSE: UNM) is a life insurance and disabilities insurance company now trading at 85% of its book value. The price-earnings ratio of 7.49 is low relative to the S&P 500’s p/e of 19.38. Citigroup initiated coverage of Unum in May, 2022 with a price target of $36. Goldman Sachs, on September 19th, 2022, maintained its “buy” rating on the stock and raised the price target to $42.

More buyers than sellers all year for this stock as the trend higher continues into September.

Not investment advice. For educational purposes only.

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