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These 11 Top Yielding Stocks Have A Nearly Secure Dividend

I started a screen in order to hunt for the most guaranteeing dividend paying stocks.

I wish to concentrate on bigger, more diversified organizations in the U.S. because of their inalienable quality and solidness. Next, I will utilize three profit related criteria to choose several dividend all-stars. 

To start with, I will choose only those organizations with dividend yields of 3 percent or more. By the way, the sustainable of the dividend payments are also in focus of my research. 

It doesn't make sense when a company pays its investor one or two years and then cuts the income stream for the following once – I will screen for companies with a dividend coverage ratio of no less than 250 percent. 

The dividend coverage is characterized as the earnings in relation to the dividend payments. The higher the ratio, the lower the dividend payouts and the higher the dividend coverage should be. 

Good companies, like Dividend Kings, can pay stable dividends or let grow when despite earnings are falling by 50 percent due to high dividend coverage.

At last, I will search for stocks with a reputation of raising their profit payouts over the long haul. I will search for a five-year normal dividend growth rate of not less than 3 percent every year. 

Attached are my 11 results of which five are highlighted in detail. I hope you find some values in my work and the current screen. Thank you for reading.

These are my favorites from the results…

#Ford Motor Company (NYSE:F) has a market capitalization of $57.85 billion. The company employs 181,000 people, generates revenue of $146,917 billion and has a net income of $7.148 billion.

Ford Motor Company’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $12.098 billion. The EBITDA margin is 8.23 percent (the operating margin is 3.69 percent and the net profit margin 4.87 percent).

Financials: The total debt represents 56.73 percent of Ford Motor Company’s assets and the total debt in relation to the equity amounts to 439.22 percent. Due to the financial situation, a return on equity of 34.02 percent was realized by Ford Motor Company.

Twelve trailing months earnings per share reached a value of $1.53. Last fiscal year, Ford Motor Company paid $0.40 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.85, the P/S ratio is 0.39 and the P/B ratio is finally 2.31. The dividend yield amounts to 3.33 percent and the beta ratio has a value of 1.44.


Long-Term Stock Price Chart Of Ford Motor Company (F)
Long-Term Dividend Payment History of Ford Motor Company (F)
Long-Term Dividend Yield History of Ford Motor Company (F)


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Agrium (NYSE:AGU) has a market capitalization of $13.71 billion. The company employs 15,800 people, generates revenue of $15,727.00 million and has a net income of $1,080.00 million.

Agrium’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,948.00 million. The EBITDA margin is 12.39 percent (the operating margin is 10.36 percent and the net profit margin 6.87 percent).

Financials: The total debt represents 24.33 percent of Agrium’s assets and the total debt in relation to the equity amounts to 57.23 percent. Due to the financial situation, a return on equity of 15.74 percent was realized by Agrium.

Twelve trailing months earnings per share reached a value of $5.81. Last fiscal year, Agrium paid $2.50 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.53, the P/S ratio is 0.87 and the P/B ratio is finally 2.03. The dividend yield amounts to 3.25 percent and the beta ratio has a value of 1.68.


Long-Term Stock Price Chart Of Agrium (AGU)
Long-Term Dividend Payment History of Agrium (AGU)
Long-Term Dividend Yield History of Agrium (AGU)

Seagate Technology (NASDAQ:STX) has a market capitalization of $22.38 billion. The company employs 52,100 people, generates revenue of $13,724.00 million and has a net income of $1,570.00 million.

Seagate Technology’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,679.00 million. The EBITDA margin is 19.52 percent (the operating margin is 12.94 percent and the net profit margin 11.44 percent).

Financials: The total debt represents 41.30 percent of Seagate Technology’s assets and the total debt in relation to the equity amounts to 138.42 percent. Due to the financial situation, a return on equity of 49.63 percent was realized by Seagate Technology.

Twelve trailing months earnings per share reached a value of $4.49. Last fiscal year, Seagate Technology paid $1.67 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.23, the P/S ratio is 1.63 and the P/B ratio is finally 7.89. The dividend yield amounts to 3.16 percent and the beta ratio has a value of 2.49.


Long-Term Stock Price Chart Of Seagate Technology (STX)
Long-Term Dividend Payment History of Seagate Technology (STX)
Long-Term Dividend Yield History of Seagate Technology (STX)

Chevron (NYSE:CVX) has a market capitalization of $213.49 billion. The company employs 64,600 people, generates revenue of $220,264.00 million and has a net income of $21,597.00 million.

Chevron’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $41,912.00 million. The EBITDA margin is 19.03 percent (the operating margin is 12.59 percent and the net profit margin 9.81 percent).

Financials: The total debt represents 8.05 percent of Chevron’s assets and the total debt in relation to the equity amounts to 13.70 percent. Due to the financial situation, a return on equity of 15.00 percent was realized by Chevron.

Twelve trailing months earnings per share reached a value of $10.86. Last fiscal year, Chevron paid $3.90 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.40, the P/S ratio is 0.97 and the P/B ratio is finally 1.45. The dividend yield amounts to 3.79 percent and the beta ratio has a value of 1.14.


Long-Term Stock Price Chart Of Chevron (CVX)
Long-Term Dividend Payment History of Chevron (CVX)
Long-Term Dividend Yield History of Chevron (CVX)

Dow Chemical Company (NYSE:DOW) has a market capitalization of $54.03 billion. The company employs 52,186 people, generates revenue of $57,080.00 million and has a net income of $4,816.00 million.

Dow Chemical Company’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7,499.00 million. The EBITDA margin is 13.14 percent (the operating margin is 11.95 percent and the net profit margin 8.44 percent).

Financials: The total debt represents 25.84 percent of Dow Chemical Company’s assets and the total debt in relation to the equity amounts to 66.77 percent. Due to the financial situation, a return on equity of 22.17 percent was realized by Dow Chemical Company.

Twelve trailing months earnings per share reached a value of $2.97. Last fiscal year, Dow Chemical Company paid $1.28 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.42, the P/S ratio is 0.95 and the P/B ratio is finally 2.41. The dividend yield amounts to 3.66 percent and the beta ratio has a value of 1.65.


Long-Term Stock Price Chart Of Dow Chemical Company (DOW)
Long-Term Dividend Payment History of Dow Chemical Company (DOW)
Long-Term Dividend Yield History of Dow Chemical Company (DOW)

11 Top Yielding Stocks With A Secure Dividend


Company
Mcap
Div.-Yield
 Div. Coverage
Div. Grth. Rate 5 Yr. Avg.
Ford Motor Co
54.2
3.50%
            4.55  
100.00%
Agrium Inc
13.3
3.30%
            2.83  
112.40%
Seagate Technology
20.7
3.30%
            2.79  
90.00%
Suncor Energy Inc
41.2
3.20%
            3.58  
31.30%
Occidental Petroleum
57.7
3.70%
            2.86  
16.30%
Chevron Corp
192.3
4.00%
            2.87  
9.10%
ConocoPhillips
77.8
4.40%
            2.75  
7.80%
Exxon Mobil Corp
365.9
3.10%
            3.00  
9.80%
Dow Chemical Co
50.3
3.80%
            2.91  
5.20%
Caterpillar Inc
54.1
3.10%
            2.62  
7.60%
Kellogg Co
22.8
3.00%
            2.77  
6.80%


11 Top Yielding Stocks With High Dividend Coverage (Click to enlarge),
Source: Long-term-investments.blogspot.com

Find more dividend stocks with nearly safe dividends here on my page: Stocks with reliable dividend payments...

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*I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I receive no compensation to write about any specific stock, sector or theme.

2 comments:

  1. I like your criteria, Tom, but I'm not sure all the stocks on your list meet those criteria. On the flip side, you mentioned a couple of very good options that were not on my radar, so thanks!

    Here's my take on the stocks in your list:

    Ford: paid NO dividend from 2007 through 2011. Not reliable enough.

    Agrium: Exceeds all criteria and I own it.

    Seagate: Dividend was slashed in 2009, none paid in 2010. Not reliable enough.

    Suncor: Looks good! Wasn't on my radar, but, sadly, another stock in the oil segment that I'm momentarily maxed out on! Worth considering, though.

    OXY: Another excellent oil stock. I'd own it, but I'm maxed out on oil.

    Chevron: Excellent choice. I'd own it, but I'm already maxed out on oil stocks.

    ConocoPhillips: Excellent Choice, and I own it.

    ExxonMobil: Another good oil stock, but pays smaller div than COP, CVX and OXY.

    Dow: Dividends were slashed in 2009 and still have not recovered their 2008 levels. (Source: Dividend.com and Schwab.com) Not reliable enough.

    Catepillar: Excellent choice, and good for diversification of portfolio.

    Kellog: Another excellent choice, and wasn't on my radar.

    Thanks for the post, Tom!

    ReplyDelete
    Replies
    1. Thank you for reading my article and commenting them. I like the way you participate and honor our work.

      For sure not all of the stocks are the top dividend growers of the past decade but it would be boring to write 3 times a week about Dividend Champs or Aristocrats.

      Also true is that some of them had a bad dividend history with no consistency and they are acting within a cyclic industry. Remember oil stocks. If the oil price is 2015 still far below $80, they will become massive problems.

      Thank you for your comment. Always great to read and re-comment.

      Delete

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