The market is becoming unsteady as we transition through March. As Jim Cramer and several other Wall Street aficionados have stated, the market-wide selloff appears to be very real.
This might not be the best time to invest in individual stocks, especially if they are high beta. Instead, the better approach might be to invest in dividend stocks. In particular, lesser-known dividend stocks that have not yet received an abundance of investor attention might prove to be the best plays moving forward.
The following under the radar dividend stocks are worth a closer analysis: OneMain Holdings (OMF), Vector Group (VGR), and Star Group (SGU).
OneMain Holdings (OMF)
This consumer financial services business is primarily centered on insurance, real estate, and acquisitions. OMF provides a dividend of 3.49%. The stock has a forward P/E ratio of 7.08 yet is trading a mere $7 below its 52-week high. In other words, it appears as though OMF is undervalued.
OMF has an overall grade of A in our POWR Rating system. It also has n A grade in the Sentiment component and B grades in the Quality, Value, and Growth components. You can find out more about how OMF fares in the remainder of the components by clicking here.
Of the 49 publicly traded companies in the Consumer Financial Services industry, OMF is ranked first. You can find other top stocks in this industry by clicking here.
Analysts are bullish on OMF, setting an average price target of $52.29 with a high target price of $63. If OMF meets expectations, it will have increased by 6%. Out of 14 analysts covering the stock, nine consider it a Buy, and five consider it a Strong Buy.
Vector Group (VGR)
VGR pays a dividend of 5.97%. This holding company's business is centered on the manufacture and sale of nicotine products. In particular, VGR makes the bulk of its money from cigarettes. However, additional VGR offerings include low-nicotine products along with the novel nicotine-free QUEST product. Furthermore, VGR also generates revenue from real estate businesses by way of subsidiaries.
VGR has B grades in the Quality, Momentum, Value, and Growth components of the POWR Ratings. If you are curious about how VGR fares in the Sentiment and Stability components, you can find out by clicking here. Out of 11 publicly traded companies in the Tobacco industry, VGR is ranked first. You can find other top stocks in the industry by clicking here.
Of the two analysts who have issued recommendations for VGR, both advise holding. However, VGR's dividend of nearly 6% might be too juicy to pass up. As long as VGR continues to expand its low-nicotine and nicotine-free offerings in the years ahead, the company should continue to grow.
Star Group (SGU)
SGU is a superstar in the home heating industry. SGU sells HVAC equipment and also provides HVAC services. Furthermore, SGU sells home heating oil, gasoline, and diesel fuel to boot. The majority of SGU operations take place in the eastern and northern states.
SGU has A grades in the Quality and Value components of the POWR Ratings. Investors who would like to learn more about how SGU fares in the rest of the components are invited to click here to find out. Out of 41 publicly traded companies in the MLPs - Oil & Gas industry, SGU is ranked first. You can find other top stocks in this industry by clicking here.
Check out the analysts' take on SGHU, and you will find the stock has an average price target of $13, meaning it has a potential 31% upside. What matters most is SGU's dividend of 5.27%. This is a fantastic dividend, especially considering that SGU provides HVAC equipment services that will always be in-demand regardless of the economy's state.
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OMF shares . Year-to-date, OMF has gained 18.10%, versus a 2.61% rise in the benchmark S&P 500 index during the same period.
About the Author: Patrick Ryan
Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management.
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