3 Dividend Stocks You Probably Aren't Looking At

When you are in times like these it sometimes seems that it may be easier to find that needle in the haystack than a company that still has some value left in it. While I agree that most dividend growers, even those that are mediocre in safety, are overvalued at their current going rate, I do believe you can still find value if you look in the right place.

Survival of the Fittest

While retail in general has hit a rough patch, it has been even worse for companies in the sporting goods industry. The bankruptcies include Sports Authority, Golfsmith, Gander Mountain, Eastern Outfitters, Sports Chalet, and now MC Sports. While Dick's Sporting Goods is still the king of the industry Big 5 Sporting Goods Corporation is making a case as a quality investment.

First let's start with the dividend. BGFV has a very healthy 4.29% dividend and a payout ratio to the tune of 50%. This should make an investor feel pretty comfortable while waiting for the company to realize the demise of others in the industry. With a current P/E ratio of 13 and a Forward P/E of ~11 this presents a very interesting opportunity.

Add to all of this sales that presented growth in the past year and a CEO that is adamant on deleveraging the balance sheet and I like what I see.

Calling Overseas

While I have been watching companies like AT&T and Verizon for sometime, and also own Nokia, there is one telecom company that I have been watching for even longer; China Mobile Limited.

Here's what interests me in CHL:

It's the largest mobile provider in a country that has the largest population (and growing).
It still has around 30% of users that need to upgrade to 4G. Yes, that does mean more money from existing customers. I definitely like the sounds of that.
It has a 3.27% dividend with a 45% payout. CHL does adjust dividend according to earnings, but with a forward P/E of 11 it means that there may growth coming soon.

Watch The Little Guys

Not too many people even take a look at a company that only brings in 36 million dollars in sales, but you should be looking at this one. Let me hit you with some statistics and see what you think about them. How do you like zero debt? A P/E of 16? A ratio of over 6? A 2% dividend with a 44% payout ratio, that has been paid quarterly since 1994?

Let me introduce you to Chicago Rivet & Machine Co. out of Illinois. The company sells various rivets and fasteners as well as assembly units, primarily to automotive companies. While you may say, "Wait but isn't there talk of a slow down in autos?", I say that you are looking at a steady money maker here.

With a dividend that doesn't quit (including yearly special dividends), an increasing operating income, and a President that wants to keep manufacturing in house, I believe this is an investment that could be a safe bet for consistent income.