2 Incredibly Cheap Dividend Stocks

2 Incredibly Cheap Dividend Stocks

The S&P 500 sports a P/E ratio over 26, which is quite high compared with historical norms. However, that doesn't mean every stock in the famous index is trading at an obscene multiple right now. In fact, two healthcare giants -- Amgen (NASDAQ: AMGN) and CVS Health (NYSE: CVS) -- are both generous dividend payers trading at cheap prices today. Does that make them automatic buys, or do they deserve their discounted valuation for a good reason?

Image source: Getty Images.

Amgen is currently trading around 14 times next year's earnings estimates, which represents a big discount to the market in general. However, I don't think the discounted valuation is an anomaly. Instead, I think it can be blamed on a handful of factors. 

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Source: Fool.com