With dividend stocks hot this year, some market experts are advising investors to be cautious and selective.

Identifying companies with room to raise dividends significantly, rather than focusing on finding the highest yields, might be your best way forward. That theme was explored by MarketWatch writer Jeff Reeves and Bob Phillips , managing principal of Spectrum Management Group.

Interestingly, there was some overlap between their stock recommendations. Phillips said the most important factor when considering a dividend stock is the likelihood of big dividend increases over time. For each of the 11 sectors, we have listed up to three companies with forward price-to-earnings ratios based on consensus earnings estimates that are lower than the aggregate. We have calculated free cash flow yields by dividing free cash flow per share for the past 12 months by the closing share price on Sept.

The Most Undervalued Sector in the Stock Market Today -- The Motley Fool

Any screening approach has its flaws. For example, a company trading at a low price-to-earnings ratio relative to peers could have some major problems.

Most Undervalued Stocks Of The S&P - March | Seeking Alpha

Also, a company excluded from the list, because it is not expected to increase earnings next year, may be in that position simply because it sold or spun off a business unit. But the screen can provide a starting point for your own research. The real-estate sector trades for 17 times weighted consensus FFO estimates. FFO stands for funds from operations. This non-GAAP figure adds depreciation and amortization back to earnings, while excluding gains or losses on the sale of investments. FFO is meant to gauge dividend-paying ability, and is used by most REITs.

The telecommunications-services sector trades for Philip van Doorn covers various investment and industry topics. He has previously worked as a senior analyst at TheStreet.

He also has experience in community banking and as a credit analyst at the Federal Home Loan Bank of New York. By using this site you agree to the Terms of Service , Privacy Policy , and Cookie Policy.

Intraday Data provided by SIX Financial Information and subject to terms of use. Historical and current end-of-day data provided by SIX Financial Information. All quotes are in local exchange time. Real-time last sale data for U. Intraday data delayed at least 15 minutes or per exchange requirements. ET Updated Stock market ends mostly lower as oil slumps. Updated British pound bounces back after sinking to 2-month low. Five Prime Therapeutics founder, CEO to step down. Steelcase shares plunges after company's earnings miss.

President takes Georgia victory lap, talks terrorism with Saudi prince.

Sears shares close Wednesday down 5. Penney shares close Wednesday down 5. How big is bitcoin, really? This chart puts it all in perspective. Updated Amazon Wardrobe is another blow to department stores. Oracle soars toward record highs after earnings beat. Cozying up to consumers in the face of competition from Adidas, Under Armour. Home News Viewer Video SectorWatch Podcasts First Take Games Portfolio My MarketWatch.

Retirement Retire Here, Not There Encore Taxes How-to Guides Social Security Estate Planning Events Columns Robert Powell's Retirement Portfolio Andrea Coombes's Working Retirement Tools Retirement Planner How long will my money last?

Economy Federal Reserve Capitol Report Economic Report Columns Darrell Delamaide Rex Nutting Tools Economic Calendar. My MarketWatch Watchlist Alerts Games Log In. New York Markets After Hours Market Snapshot Winners and Losers.

Home Investing Stocks Deep Dive Get email alerts. By Philip van Doorn. By Philip van Doorn Investing columnist. Here are all 29 stocks that passed the screen, broken down by sector: FactSet, market close on Sept. Do you need to pay off your mortgage before you retire? Saudi Arabia replaces crown prince in major shakeup.

Related Topics Markets U. Stocks Mutual Funds Exchange Traded Funds. APR Last Week 6 Months Low Interest We Want to Hear from You Join the conversation Comment. MarketWatch Site Index Topics Help Feedback Newsroom Roster Media Archive Premium Products Mobile. Dow Jones Network WSJ. Hospitality Properties Trust U.

10 Undervalued High-Yield Dividend Stocks Worth Buying Today - TheStreet

Chesapeake Lodging Trust U. Summit Hotel Properties Inc. Great Plains Energy Inc. Free cash flow yield - past 12 months.