3 Cheap Income Stocks

THE INCOME INVESTOR: These stocks are yielding at least 4% - well above the current rate of inflation - and are currently trading at below their market value

Emma Wall 22 December, 2014 | 4:42PM
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Looking for stocks that offer both income and the opportunity for growth? These companies are considered to be trading below their market value by Morningstar equity analysts and are paying a yield of at least 4%.

Centrica (CNA)

Centrica has achieved steady earnings and dividend growth despite reduced retail gas and power demand and a large tax increase on North Sea gas production. The solid financial performance during tough macroeconomic times was due to its strategy of hedging roughly 50% of its retail energy sales with its own assets.

However, owing to the declining production in the aging Morecambe gas fields, Centrica has made several acquisitions of gas properties and increased its exploration to maintain this effective hedge level.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Centrica PLC59.46 GBX-1.26Rating
Standard Chartered PLC484.80 GBX-0.86Rating

About Author

Emma Wall  is former Senior International Editor for Morningstar