As a dividend income investor I am always on the lookout for new dividend opportunities to consider adding to my current stock portfolio. Of course, this is easier said than done as the market has been on a magnificent bull run which has inflated the PEs of many stable dividend stocks. However, with the recent market slide the past couple weeks many dividend investors are starting to consider adding these formerly high PE stocks now that share prices have come down a bit.

With the focus of every dividend investor being yield and valuation I thought it would be interesting to highlight some of the stocks that currently trade at single digit PEs while at the same time offer high current yield. I think the list created below is interesting. I have eliminated any stock with a market cap below $1 billion and any REIT, ETF or MLP.

Of course, yield and PE alone do not an investment decision make, but I think that by focusing on these two primary factors you can at least create a good starting point for finding some interesting current high yielding dividend stocks that you may not ordinarily consider. And that’s what blogging about dividend growth investing is all about. Sharing new and different ideas for others to consider. That being said, let’s begin by highlighting some of the best high yielding, single digit PE dividend stocks.

First up is Noble Corp. (NE). NE is an offshore drilling contractor for the oil and gas industry with operations all over the world including operations in the United States, Gulf of Mexico and Alaska, Mexico, Brazil, the North Sea, the Mediterranean, West Africa, the Middle East, India, Malaysia, and Australia. NE currently yields a lofty 4.40% with a moderate payout ratio of 44.6% ensuring a safe dividend based on current cash flow. On the valuation side of things, NE has a current PE of 7.76 putting it well below the S&P and its peers. This low current PE is well below the five year average of 13.5 making NE a relatively cheap, high yielding stock. Or course, a four star rating from Morningstar doesn’t hurt either.

Sticking with the oil and gas industry is another high yielding low PE stock, CNOOC Ltd. (CEO). Currently, yielding 4.10% with a moderately low payout ratio of 35.7% CEO, explores develops, produces, and sells crude oil, natural gas, and other petroleum products primarily from locations near offshore China but also owns assets in Africa, North America, South America, Oceania, and Europe. The PE of CEO is currently at 9.14 placing it well below its peers and the S&P. Another interesting point for CEO is the healthy ten year annualized dividend growth rate of 16.54%. This may be an interesting stock to watch as CEO offers both current high yield and a healthy dividend growth rate as well.

Moving down the list of high yielding low PE stocks two insurance companies have popped on the radar. The first, OneBeacon Insurance Group, Ltd. (OB) which currently yields a very high 5.50% with a moderately high payout ratio of 74.3%. OB provides specialty property and casualty insurance and services such as air cargo coverage and various marine insurance products. Think of those large container ships with millions in cargo. OB covers any loss or damage arising the loading and unloading of cargo, ship repairs, collision and other issues that may arise in the transport of cargo. The current PE of OB is 9.6 putting it slightly below its peers and well below the S&P.

The second insurance company to make the list is Old Republic International Corporation (ORI). ORI currently yields 4.30% with a moderately high payout ratio of 81.1%. The company offers automobile extended warranties, aviation, commercial automobile, home warranty, travel accident, and workers’ compensation insurance products. The current PE of ORI is 7.05 putting it well below its peers and the S&P. ORI has a very long dividend history as well and has proven to be very shareholder friendly in that respect.

Our next high yield low PE stock is Sibanye Gold Limited (SBGL). As the name suggests, Sibanye Gold Limited is a gold mining company that owns and operates various gold operations in South Africa. The stock currently yields a healthy 4.60% with a very low payout ratio of only 11.9%. Based on current cash flow you can expect this high yield stock to continue paying these generous dividends. On the valuation side SBGL currently has a PE of 7.64 making this stock cheap relative to the market in general. One thing to be aware of is the decline in overall revenue the past couple of years but I suspect it has more to do with the drop in the price of gold more so than production limits. Still, as a high yielding stock this may be one to keep for a limited time as many dividend growth investors are looking to jump start their current income and then move into lower yielding, higher quality and higher dividend growth stocks.

Finally, Fortress Investment Group LLC (FIG), an asset management company yields 4.20% with a moderate payout ratio of about 60%. FIG has a current PE of 9.21 placing it well below its peers and the S&P. Another four star rated stock by Morningstar, FIG can be considered another high yield, income producer, jump start stock.

I found it interesting that of the six stocks mentioned above two are in the oil and gas industry and three are in the financial sector with two insurance companies and one asset management company. This theme has been playing out in the market for several months as I have found that most of the relative bargains in the market have been in the financial sector and energy. Stocks such as USB, WFC, AFL, CB, TD, RY, BNS, CM and BMO all trade at relatively low PEs to the market just like many of the energy names such as BP, TOT, XOM, CVX, COP and PSX to name a few. What exactly is Mr. Market trying to tell us as we seek relative value in this still expensive market? I know that many of these names highlighted in the blog post would also be considered by DGI investors looking to jump start their current income with these lofty yields.

What do you think about these high yield, low PE names above? Are any in your portfolio or watch list? Please let me know below.