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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