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6 Core-Income Bargains

BALTIMORE ( Stockpickr) -- August may be drawing to a close, but the latest round of market tumult hasn't yet. As Wall Street ponders the implications of Ben Bernanke's Jackson Hole speech just half an hour after this morning's open, it remains to be seen just how much volatility is going to come into stocks to end the week. But there's a way to skirt that volatility, and the smart money's already piling into it.

I've talked a lot about the discount we're seeing in stocks in recent weeks. While fundamentals remain well out of synch with the market's pricing, there is a way to combat that disconnect: it all comes down to owning companies that are willing to share their record earnings with you. That means it all comes back to dividend stocks.

Related: 3 Stocks Increasing High-Yield Dividends

The smart money's been buying up corporate income en masse lately -- from institutional money flowing into corporate bonds instead of treasuries to Warren Buffett's recent $5 billion buy of Bank of America's (BAC) 6% preferreds, income has become an under-the-radar angle in this market.

Core income holdings are looking cheap in August, and the statistics suggest that the discount won't last for long.

Historically, dividend-payers have made a whole lot more money for investors than their nonpaying peers. Over the last 36 years, dividend stocks outperformed the rest of the S&P 500 by 2.5% annually, and they outperformed nonpayers by nearly 8% every year, all while paying out cash to their shareholders, according to a study from NDR. The numbers are even more compelling when looking at companies that consistently increase their payouts.

Today, let's take a look at six core income holdings that are looking attractive right now.
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