Investing in cheap dividend stocks can be a risky move, as these companies are usually not in favor with the market for a reason. However, for value investors, taking a contrarian approach and looking at out-of-favor stocks with high dividend yields can present lucrative opportunities. Right now, two such stocks that are worth considering are Rexford Industrial (NYSE: REXR) and Toronto-Dominion Bank (NYSE: TD). Despite their current struggles, both companies offer historically high dividend yields and have the potential for long-term growth.
Rexford Industrial focuses on the Southern California warehouse market, which is one of the most attractive industrial markets in the United States. With limited supply and high demand, the region offers a strong investment opportunity for industrial assets. Although the company recently reported solid first-quarter results, concerns about slowing rental increases have led to a dip in its stock price, pushing the dividend yield to near 10-year highs. This presents a buying opportunity for investors who believe in Rexford’s growth prospects through redevelopment and repositioning of existing properties.
Similarly, Toronto-Dominion Bank, one of the largest banks in North America, is currently facing headwinds in the Canadian housing market and regulatory challenges in the U.S. Despite these issues, the bank has a consistent dividend track record, unlike some of its competitors who cut dividends during the Great Recession. With a historically high dividend yield of 5.1%, TD Bank remains an attractive option for dividend investors who value stability and long-term growth potential.
Investing in cheap stocks during times of uncertainty requires a strong stomach, but it can also lead to significant gains when the market sentiment shifts. Rexford and TD Bank may not be the most popular choices right now, but their high dividend yields and growth potential make them worthy considerations for investors looking for undervalued opportunities in the market.
At Extreme Investor Network, we always strive to provide valuable insights and recommendations for our members. If you’re interested in learning more about undervalued stocks with high dividend potential, be sure to check out our latest research and analysis on Rexford Industrial and Toronto-Dominion Bank. Our expert team of analysts can help you make informed investment decisions that align with your financial goals and risk tolerance. Join us today and start on the path to financial success with Extreme Investor Network.
