Title: “Cheap Stocks with High Dividend Yields: Why Now is the Time to Invest in Rexford Industrial and Toronto-Dominion Bank”
In the world of value investing, cheap stocks often end up being cheap for a reason. However, for investors willing to go against the grain and buy out-of-favor stocks, there can be significant opportunities. Right now, Rexford Industrial (NYSE: REXR) and Toronto-Dominion Bank (NYSE: TD) are facing market concerns, but their historically high dividend yields make them attractive investment options. Here’s why you should consider investing in these companies.
Rexford Industrial, a real estate investment trust (REIT), is focused on the highly attractive Southern California industrial market. With limited new construction and high demand for industrial assets, the region offers significant growth potential for the company. Despite concerns about slowing rental increases, Rexford recently announced solid first-quarter results, with funds from operations up 20.3%. This has pushed the stock price down, resulting in a high dividend yield. For long-term investors, this presents a buying opportunity, especially considering the company’s strong track record of dividend growth.
On the other hand, Toronto-Dominion Bank, the sixth-largest bank in North America, is facing headwinds in the Canadian housing market and regulatory challenges in the U.S. However, the bank has a history of dividend consistency, having maintained its dividend during the Great Recession when other banks were forced to cut theirs. With a historically high dividend yield of 5.1%, TD Bank remains an attractive option for dividend investors. Despite near-term uncertainties, the bank’s strong capital position and growth potential make it a compelling investment opportunity.
In conclusion, investing in cheap stocks with high dividend yields like Rexford Industrial and Toronto-Dominion Bank can be a profitable strategy for long-term investors. By buying when others are scared, investors can capitalize on the potential growth and income opportunities these companies offer. Consider adding these stocks to your portfolio for attractive returns in the coming years.
