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4 Safe High-Yielding Stocks To Consider

Safety comes first, that's also one of my rules when I started to invest money into the stock market. I believe that it gives you a solid return to avoid the big risks because each loss you don't need is also a gain you don't need to catch by taking higher risks.

Growth is just as important. Investors in or near requirement should demand their investments grow dividend income at least as fast as inflation - and hopefully much faster. This gives you a boost in your standard of living each year.

Today I like to introduce 4 stocks with a large dividend growth history (more than 30 years that give investors a solid ground to invest.

Each of these businesses also has maintained a growth rate higher than the inflation rate for the last several years and has a dividend yield 3% or higher. These high yield stocks should provide income now and growth for future income. 


They all have exceptionally low stock price standard deviations. These 3 businesses also have strong competitive advantages that insulate them from the worst effects of recessions. In short, these are 4 high quality businesses that score high marks for safety.

These are the results:


Southern Company -- Yield: 4.96%

Southern Company (NYSE:SO) employs 26,369 people, generates revenue of $18,467.00 million and has a net income of $2,031.00 million. The current market capitalization stands at $39.71 billion.

Southern Company’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5,234.00 million. The EBITDA margin is 28.34% (the operating margin is 19.72% and the net profit margin 11.00%).

Financials: The total debt represents 35.22% of Southern Company assets and the total debt in relation to the equity amounts to 118.49%. Due to the financial situation, a return on equity of 10.08% was realized by Southern Company.

Twelve trailing months earnings per share reached a value of $2.34. Last fiscal year, Southern Company paid $2.08 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.64, the P/S ratio is 2.15 and the P/B ratio is finally 1.99. The dividend yield amounts to 4.96%.

Stock Charts:


Long-Term Stock Price Chart of Southern Company (SO)
Long-Term Stock Price Chart of Southern Company (SO)
Long-Term Dividend Payment History of Southern Company (SO)
Long-Term Dividend Payment History of Southern Company (SO)
Long-Term Dividend Yield History of Southern Company (SO)
Long-Term Dividend Yield History of Southern Company (SO)





Procter & Gamble -- Yield: 3.27%

Procter & Gamble (NYSE:PG) employs 118,000 people, generates revenue of $83,062.00 million and has a net income of $11,707.00 million. The current market capitalization stands at $219.89 billion.

Procter & Gamble’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $19,201.00 million. The EBITDA margin is 23.12% (the operating margin is 18.41% and the net profit margin 14.09%).

Financials: The total debt represents 24.55% of Procter & Gamble assets and the total debt in relation to the equity amounts to 51.17%. Due to the financial situation, a return on equity of 16.75% was realized by Procter & Gamble.

Twelve trailing months earnings per share reached a value of $3.37. Last fiscal year, Procter & Gamble paid $2.45 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.94, the P/S ratio is 2.65 and the P/B ratio is finally 3.23. The dividend yield amounts to 3.27%.

Stock Charts:


Long-Term Stock Price Chart of Procter & Gamble (PG)
Long-Term Stock Price Chart of Procter & Gamble (PG)
Long-Term Dividend Payment History of Procter & Gamble (PG)
Long-Term Dividend Payment History of Procter & Gamble (PG)
Long-Term Dividend Yield History of Procter & Gamble (PG)
Long-Term Dividend Yield History of Procter & Gamble (PG)


Kimberly Clark -- Yield: 3.15%

Kimberly Clark (NYSE:KMB) employs 43,000 people, generates revenue of $19,724.00 million and has a net income of $1,399.00 million. The current market capitalization stands at $40.71 billion.

Kimberly Clark’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,383.00 million. The EBITDA margin is 17.15% (the operating margin is 12.78% and the net profit margin 7.09%).

Financials: The total debt represents 45.27% of Kimberly Clark assets and the total debt in relation to the equity amounts to 964.06%. Due to the financial situation, a return on equity of 52.86% was realized by Kimberly Clark.

Twelve trailing months earnings per share reached a value of $3.75. Last fiscal year, Kimberly Clark paid $3.36 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 29.85, the P/S ratio is 2.06 and the P/B ratio is finally 56.02. The dividend yield amounts to 3.15%.

Stock Charts:


Long-Term Stock Price Chart of Kimberly Clark (KMB)
Long-Term Stock Price Chart of Kimberly Clark (KMB)
Long-Term Dividend Payment History of Kimberly Clark (KMB)
Long-Term Dividend Payment History of Kimberly Clark (KMB)
Long-Term Dividend Yield History of Kimberly Clark (KMB)
Long-Term Dividend Yield History of Kimberly Clark (KMB)


General Mills Incorporation -- Yield: 3.08%

General Mills Incorporation (NYSE:GIS) employs 43,000 people, generates revenue of $17,909.60 million and has a net income of $1,771.70 million. The current market capitalization stands at $34.06 billion.

General Mills Incorporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,496.10 million. The EBITDA margin is 19.52% (the operating margin is 16.51% and the net profit margin 9.89%).

Financials: The total debt represents 37.96% of General Mills Incorporation assets and the total debt in relation to the equity amounts to 134.45%. Due to the financial situation, a return on equity of 27.63% was realized by General Mills Incorporation.

Twelve trailing months earnings per share reached a value of $2.31. Last fiscal year, General Mills Incorporation paid $1.55 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 24.62, the P/S ratio is 1.90 and the P/B ratio is finally 5.35. The dividend yield amounts to 3.08%.

Stock Charts:


Long-Term Stock Price Chart of General Mills Incorporation (GIS)
Long-Term Stock Price Chart of General Mills Incorporation (GIS)
Long-Term Dividend Payment History of General Mills Incorporation (GIS)
Long-Term Dividend Payment History of General Mills Incorporation (GIS)
Long-Term Dividend Yield History of General Mills Incorporation (GIS)
Long-Term Dividend Yield History of General Mills Incorporation (GIS)

4 comments:

  1. Chris Reeves5/20/2015

    Here's why I don't like your articles as much as others that I read. You put no personal touch on them and you don't give an opinion. The only opinion stated was in the title. The rest is just financial data that I can get from any number of sources. Take a little more time as you write these and put a personal touch on them and you'll see your readers and commenters grow.

    ReplyDelete
    Replies
    1. Hi Chris,
      Thanks for your comment. You're right but that's the goal to show a large group of high-quality stocks about normal investors can get a quick overview of the company where they start they initial research. Other sites deliver deeper material while the highest level of information can be found on the company’s investor relation sites. If you look for a discussion, there are also many other sites like Facebook, Twitter or Seeking Alpha.
      Thanks for reading and commenting my article.
      Best
      Tom

      Delete
    2. Howard5/21/2015

      I agree with Tom about his approach. I'm not reading for Tom's opinion. I'm looking for dividend stock ideas I may have overlooked.

      As for this this article, Tom, I agree that PG, KMB, and GIS are worthy, and I plan to add at least 2 and maybe all 3 of them very shortly.

      However, I can't agree with you that Southern Co. is "Safe". SO's current dividend rate is $0.5425. The 1st quarter earnings were $0.56. So they are paying out 97% of earnings as dividends. That appears dangerously high to me. The other 3 companies you listed have much better ratios.

      Delete
    3. Thank you Howard, you definitely know what I'm talking about. Your thoughts and comments are always useful and contents lots of value. Thank you.

      Delete

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