Investors sometimes focus too closely on the price performance of a stock, watching the rise and fall of share prices when putting together a portfolio. Share price is important, but it’s not the only measure of a stock’s success. Dividend yield, or the percent of share price paid out in cash to investors every quarter, also influences a stock’s desirability. While most dividends are small – only 1 or 2 percent – they can add up over large shareholdings, long-term time horizons, or both. Let’s dive into TipRanks’ data to look at three stocks that give investors the best of both worlds: a low share price making them bargain purchases, and a consistent dividend payout.

Big Lots (BIG)

Some market segments have a reputation for being recession proof. In consumer retailing, the discount closeout segment – where the everyday necessities of are sold in bulk at deep price cuts – has long held that allure. Big Lots, Inc. (BIG – Research Report) is a discount retailer headquartered in Columbus, Ohio, specializing in low-cost consumer goods (food and consumables, electronics and toys, hard and soft home furnishings, and furniture) retailed through the warehouse model.

With its inventory bent toward low-end such as food, baby supplies, and soft home furnishings, Big Lots has historically managed to weather recession periods well. The chain operates over 1400 stores in 47 US states, and its main competition comes from the even lower-end “dollar” stores. Big Lots’ parent company, Big Lots, Inc., has been traded on the NYSE since 1986. The company has paid consistent quarterly dividends to shareholders since 2014, averaging 1.5 to 2.9 percent. The current yield is 2.8 percent on a share price of $42.69, giving an annual dividend per share of $1.20.

That dividend yield may look small, but there is plenty of room for growth. Analysts are giving Big Lots a ‘Moderate Buy’ rating, citing a $6 price gain since June and an average upside target of 10 percent, or $47. Gregory Badishkanian (Track Record & Ratings) of Citigroup recently gave BIG a stronger vote of confidence, with a $51 target price, a 21 percent upside prediction.

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View BIG Price Target & Analyst Ratings Detail

General Mills (GIS)

Where the discount warehouse model offers a strong foundation for retailers when the economic climate is shaky, food processors and retailers have a head start. Everyone needs to eat. General Mills, Inc. (GIS  – Research Report) markets a wide variety of branded foods, from flour and cake mixes to breakfast cereals to specialty organic products. The company even created the tear-off strip now ubiquitous on the tops of food cartons.

General Mills’ strength in the industry is reflected in its regular dividend payments. While the stock is trading near its one-year low, the current price of $43.10 is down on the 1 year, 3 year, and 5-year time horizons, it is still seen as solid. The analyst consensus of ‘Moderate Buy’ shows in the 20 percent upside and $51 average price target. Pablo Zuanic (Track Record & Ratings), of Susquehanna, sees the food maker’s share price poised for recovery: “…management seems highly confident it will [meet FY19 guidance], given 1Q was either in line or above its own expectations, and because of visibility into the year ahead…”

In addition, General Mills has a consistent history of paying good dividends, between 2.7 and 4.4 percent, every quarter for the last seven years. The current yield is 4.5 percent, giving an annualized payout of $1.96 per share.

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View GIS Price Target & Analyst Ratings Detail

Cisco (CSCO)

Cisco Systems, Inc. (CSCO – Research Report) is the world’s largest technology networking company, whose market cap of more than $200B makes it by far the largest company of those we are looking at here.

While the stock price of $45.71 is modest, it has been a consistently strong performer in recent years. Two months ago, top analyst Mitch Steves (Track Record & Ratings) of RBC Capital gave CSCO a $52 price target, saying “…the company’s recurring revenue will accelerate from its 32% of the total given continued growth in applications and security, which will allow Cisco to continue growing at mid-single digits in the near future and see operating margins expand.” More recently, James Faucette (Track Record & Ratings) of Morgan Stanley reiterated a ‘Buy’ rating when CSCO closed near its one-year high price. Currently, CSCO holds a ‘Moderate Buy” rating with an average price target of $51.70, for a 13 percent upside.

CSCO’s dividend payout, like its stock performance, has been consistently strong. The company has paid regular quarterly dividends since 2011, ranging from 0.5 percent to 3.7. Cisco’s last payout was on October 4. The annualized rate is 2.9 percent, and the payout is $1.32 per share.

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View CSCO Price Target & Analyst Ratings Detail