Comcast Trades at 6 Times Earnings and Yields 6%. Does It Deserve to Be One of the Cheapest S&P 500 Dividend Stocks, or Is This a No-Brainer Buying Opportunity?
Trading at just 6 times forward earnings and with a 6% forward dividend yield, Comcast (NASDAQ: CMCSA) stock is arguably priced for disaster. But is the super-low valuation of this telecommunications and media giant warranted, or have investors overreacted by giving the stock such a “value trap” valuation?
On one hand, there is justification for caution, given the company’s ongoing broadband subscriber losses. On the other hand, with Comcast’s upcoming plans to spin off the rest of its media assets, it may be on the verge of unlocking its underlying value. Or is it?
Let’s take a closer look to see whether this is a prime deep-value opportunity or a name that’s likely to remain a value-and-yield trap.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.