The stock market has rallied sharply in the past year and has been routinely bumping up against new all-time highs. And that means stocks are starting to get pricey. The S 500 currently trades at about 24.5 times its earnings, which is above the sub-22.5 level it traded at one year ago.
However, there are still some bargains out there if you know where to look. For example, many real estate investment trusts (REITs) are still incredibly cheap because of the impact higher interest rates have had on real estate valuations. As a result, most offer high-yielding dividends. Three dirt cheap REITs to buy right now are W.P. Carey (NYSE: WPC), Realty Income (NYSE: O), and EPR Properties (NYSE: EPR).
W.P. Carey currently expects to generate between $4.63 and $4.73 of adjusted funds from operations (FFO) per share this year. With its share price recently below $60, the diversified REIT trades at about 13 times its earnings at the midpoint of its guidance range. That incredibly cheap valuation is why its dividend yield is nearly 6% these days, several times above the S 500’s sub-1.5% level.
Source Fool.com