The Motley Fool

3 Growth and Income Stocks to Buy and Hold Forever

One of the most difficult tasks we face as investors is finding the right stock at the right price when we are ready to buy. In order to make things very easy for you, I have compiled a list of three dividend-paying stocks that are trading at inexpensive valuations compared with their five-year averages and their industry averages, so let’s take a closer look at each to determine which would be the best fit for your portfolio.

1. Cameco Corporation

Cameco Corporation (TSX:CCO)(NYSE:CCJ) is one of the largest producers of uranium in the world. At today’s levels, its stock trades at 14.6 times fiscal 2015’s estimated earnings per share of $1.18 and 13.3 times fiscal 2016’s estimated earnings per share of $1.29, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 27.3 and its industry average multiple of 78.2. In addition, the company pays a quarterly dividend of $0.10 per share, or $0.40 per share annually, giving its stock a 2.3% yield.

2. Dominion Diamond Corp.

(All figures are in U.S. dollars)

Dominion Diamond Corp. (TSX:DDC)(NYSE:DDC) is the world’s third-largest producer of rough diamonds by value. At current levels, its stock trades at 23.5 times fiscal 2016’s estimated earnings per share of $0.72 and 13.5 times fiscal 2017’s estimated earnings per share of $1.25, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 84.4 and its industry average multiple of 72.5. In addition, the company pays a semi-annual dividend of $0.20 per share, or $0.40 per share annually, which gives its stock a 2.9% yield.

3. Clearwater Seafoods Inc.

Clearwater Seafoods Inc. (TSX:CLR) is North America’s largest vertically integrated harvester, processor, and distributor of premium shellfish. At today’s levels, its stock trades at 17 times fiscal 2015’s estimated earnings per share of $0.69 and 16.5 times fiscal 2017’s estimated earnings per share of $0.71, both of which are inexpensive compared with its five-year average price-to-earnings multiple of 406.7 and its industry average multiple of 19.9. Additionally, the company pays a quarterly dividend of $0.04 per share, or $0.16 per share annually, giving its stock a 1.4% yield.

Should you buy one of these stocks today?

Cameco, Dominion Diamond, and Clearwater Seafood are three of the top value plays in their respective industries. Foolish investors should strongly consider beginning to scale in to positions in at least one of them.

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Fool contributor Joseph Solitro has no position in any stocks mentioned.

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