The recent stock market crash has pushed down the share prices of many fantastic FTSE 100 dividend stocks. Right now, there are plenty of opportunities for those who are brave enough to invest. Today, I’m looking at three dividend stocks that I believe offer strong value at present.
If you’re a high-yield investor, look no further than Aviva (LSE: AV) for big dividends. A recent sell-off has left the shares trading on a forward P/E of just 7.5 and offering a prospective dividend yield of a massive 7%.
Aviva shares have underperformed the FTSE 100 over the last month after the group announced on 9 October that Chief Executive Mark Wilson would be stepping down from his role with immediate effect. Wilson was brought in to deliver a turnaround at Aviva in January 2013 and he did an excellent job, however, the board now believes it’s time for new leadership to take the group to the next level.
With no CEO currently at the helm, investors have dumped the stock recently, pushing up the yield. However, for longer-term dividend investors, I think this dip may have created a buying opportunity. The group recently advised that it remains on track to deliver its financial target of operating earnings per share growth of greater than 5% in 2018.
Broadcaster and content producer ITV (LSE: ITV) is another stock that has been dumped in recent weeks during the market sell-off. And with the stock now trading on a forward P/E of 9.9 and sporting a prospective yield of 5.3%, I think strong value is on offer for patient investors.
It doesn’t surprise me that ITV has been sold off in the recent volatility as broadcasting is seen as a cyclical business. However, what I think the market is missing here is the growth of the group’s content division – ITV Studios. You see, ITV is rolling out a stack of excellent content at the moment such as last night’s Dark Heart (which was trending on Google earlier this morning) and this content is propelling revenue growth at ITV Studios (H1 growth of 16%).
With the shares having fallen to a rock-bottom valuation in recent weeks, I believe now is the time to buy, especially given the fact the group recently advised that it is committed to paying dividends of at least 8p for this year and next.
Lastly, check out packaging group Smurfit Kappa (LSE: SKG). Regular readers will know that I’m bullish on packaging as a long-term theme due to its important role in e-commerce. If you buy something online these days, it’s almost certain to come packaged in some kind of cardboard box, so packaging companies offer an indirect way to profit from the likes of Amazon, Argos and ASOS. As online shopping continues to grow in popularity in the years ahead, packaging companies should benefit, in my view.
Smurfit Kappa, which has 350 production sites across 33 countries and focuses on sustainable products that are 100% renewable, is enjoying strong momentum at present. Yesterday, the group announced in a trading update that for the first nine months of the year, revenue was up 7% and pre-exceptional EBITDA rose 27%. With the shares currently trading on a forward P/E of 10.7 and offering a prospective yield of 3.2%, I think value is on the table right now.
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Edward Sheldon owns shares in Aviva and ITV. The Motley Fool UK has recommended ITV. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.