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6 Top Dividend Growth Stocks With Yields Over 4%

Interest rates are at the lowest level for nearly a decade. 

As safe haven investor, you will not receive much more than 2% for taking risk into your portfolio.

The good news is that there are plenty of stocks yielding double that annual rate, and even if a market-thumping yield often involves some trade-offs, income investors don't have to give up profit or sales growth potential to achieve a 4% dividend yield.

With that in mind, here are three growing businesses with hefty dividend payouts that you might consider adding to your watchlist.

Here are the stocks with 4% dividend yield which look like bargains...

HCP -- Yield: 6.64%

HCP (NYSE:HCP) employs 187 people, generates revenue of $2,544.31 million and has a net income of $-557.84 million. The current market capitalization stands at $16.46 billion.

HCP’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,833.92 million. The EBITDA margin is 72.08% (the operating margin is -4.25% and the net profit margin -21.92%).

Financials: The total debt represents 51.60% of HCP assets and the total debt in relation to the equity amounts to 118.47%. Due to the financial situation, a return on equity of -5.58% was realized by HCP.

Twelve trailing months earnings per share reached a value of $-1.21. Last fiscal year, HCP paid $2.26 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is , the P/S ratio is 6.36 and the P/B ratio is finally 1.73. The dividend yield amounts to 6.64%.

Stock Charts:


Long-Term Stock Price Chart of HCP (HCP)
Long-Term Stock Price Chart of HCP (HCP)
Long-Term Dividend Payment History of HCP (HCP)
Long-Term Dividend Payment History of HCP (HCP)
Long-Term Dividend Yield History of HCP (HCP)
Long-Term Dividend Yield History of HCP (HCP)



AT&T -- Yield: 4.99%

AT&T (NYSE:T) employs 281,450 people, generates revenue of $146,801.00 million and has a net income of $13,687.00 million. The current market capitalization stands at $236.18 billion.

AT&T’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $49,599.00 million. The EBITDA margin is 33.79% (the operating margin is 16.88% and the net profit margin 9.32%).

Financials: The total debt represents 31.33% of AT&T assets and the total debt in relation to the equity amounts to 102.84%. Due to the financial situation, a return on equity of 12.57% was realized by AT&T.

Twelve trailing months earnings per share reached a value of $2.26. Last fiscal year, AT&T paid $1.89 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.01, the P/S ratio is 1.61 and the P/B ratio is finally 1.93. The dividend yield amounts to 4.99%.

Stock Charts:


Long-Term Stock Price Chart of AT&T (T)
Long-Term Stock Price Chart of AT&T (T)
Long-Term Dividend Payment History of AT&T (T)
Long-Term Dividend Payment History of AT&T (T)
Long-Term Dividend Yield History of AT&T (T)
Long-Term Dividend Yield History of AT&T (T)



Mercury General -- Yield: 4.68%

Mercury General (NYSE:MCY) employs 4,300 people, generates revenue of $3,009.30 million and has a net income of $74.48 million. The current market capitalization stands at $2.92 billion.

Mercury General’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $639.47 million. The EBITDA margin is 21.25% (the operating margin is 2.45% and the net profit margin 2.47%).

Financials: The total debt represents 6.27% of Mercury General assets and the total debt in relation to the equity amounts to 15.93%. Due to the financial situation, a return on equity of 4.03% was realized by Mercury General.

Twelve trailing months earnings per share reached a value of $1.35. Last fiscal year, Mercury General paid $2.47 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 39.28, the P/S ratio is 0.97 and the P/B ratio is finally 1.61. The dividend yield amounts to 4.68%.

Stock Charts:


Long-Term Stock Price Chart of Mercury General (MCY)
Long-Term Stock Price Chart of Mercury General (MCY)
Long-Term Dividend Payment History of Mercury General (MCY)
Long-Term Dividend Payment History of Mercury General (MCY)
Long-Term Dividend Yield History of Mercury General (MCY)
Long-Term Dividend Yield History of Mercury General (MCY)



Universal Health -- Yield: 4.66%

Universal Health (NYSE:UHT) employs people, generates revenue of $63.95 million and has a net income of $23.69 million. The current market capitalization stands at $739.65 million.

Universal Health’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $43.08 million. The EBITDA margin is 67.36% (the operating margin is 37.05% and the net profit margin 37.05%).

Financials: The total debt represents 55.07% of Universal Health assets and the total debt in relation to the equity amounts to 129.56%. Due to the financial situation, a return on equity of 11.86% was realized by Universal Health.

Twelve trailing months earnings per share reached a value of $1.78. Last fiscal year, Universal Health paid $2.56 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 31.10, the P/S ratio is 11.55 and the P/B ratio is finally 3.79. The dividend yield amounts to 4.66%.

Stock Charts:


Long-Term Stock Price Chart of Universal Health (UHT)
Long-Term Stock Price Chart of Universal Health (UHT)
Long-Term Dividend Payment History of Universal Health (UHT)
Long-Term Dividend Payment History of Universal Health (UHT)
Long-Term Dividend Yield History of Universal Health (UHT)
Long-Term Dividend Yield History of Universal Health (UHT)



Chevron -- Yield: 4.44%

Chevron (NYSE:CVX) employs 61,500 people, generates revenue of $129,648.00 million and has a net income of $4,710.00 million. The current market capitalization stands at $184.52 billion.

Chevron’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $20,951.00 million. The EBITDA margin is 16.16% (the operating margin is -0.07% and the net profit margin 3.63%).

Financials: The total debt represents 14.50% of Chevron assets and the total debt in relation to the equity amounts to 25.27%. Due to the financial situation, a return on equity of 2.98% was realized by Chevron.

Twelve trailing months earnings per share reached a value of $2.45. Last fiscal year, Chevron paid $4.28 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 39.39, the P/S ratio is 1.40 and the P/B ratio is finally 1.19. The dividend yield amounts to 4.44%.

Stock Charts:


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



Old Republic -- Yield: 4.19%

Old Republic (NYSE:ORI) employs 8,200 people, generates revenue of $5,765.90 million and has a net income of $422.20 million. The current market capitalization stands at $4.71 billion.

Old Republic’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $700.30 million. The EBITDA margin is 12.15% (the operating margin is 11.68% and the net profit margin 7.32%).

Financials: The total debt represents 5.62% of Old Republic assets and the total debt in relation to the equity amounts to 24.78%. Due to the financial situation, a return on equity of 10.82% was realized by Old Republic.

Twelve trailing months earnings per share reached a value of $1.46. Last fiscal year, Old Republic paid $0.74 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.26, the P/S ratio is 0.81 and the P/B ratio is finally 1.21. The dividend yield amounts to 4.19%.

Stock Charts:


Long-Term Stock Price Chart of Old Republic (ORI)
Long-Term Stock Price Chart of Old Republic (ORI)
Long-Term Dividend Payment History of Old Republic (ORI)
Long-Term Dividend Payment History of Old Republic (ORI)
Long-Term Dividend Yield History of Old Republic (ORI)
Long-Term Dividend Yield History of Old Republic (ORI)

6 comments:

  1. Howard4/12/2016

    Only two of these six have annual earnings that are larger than the annual dividends they are paying. I wouldn't consider buying a stock that's not making enough money to cover the dividend.

    ReplyDelete
  2. Are these articles written by people? Or is it a computer that is recommending a company with a net income of $-557.84 million, operating margin -4.25%, net profit margin -21.92% and return on equity of -5.58%. I could this as turnaround play, but as a solid dividend stock its begging for disaster.

    ReplyDelete
  3. Howard4/17/2016

    @TheLerner, I don't think a computer would have recommended these companies as solid dividend companies!

    When I was just starting out investing in dividend companies a few years ago, I got a number of good ideas from Tom's "Dividend Yield" feeds. Now it feels like he's too busy cranking out content to look carefully at what he's recommending, and it's pretty much the same old content anyway. I used to read every article, but now I seldom do.

    Tom, here's an idea for a lot of new articles. You should look at all the dividend stocks within a sector. For example, in the telephone sector you'd have VZ, ATT, Telus, and probably others, all of which are possible good dividend stocks. In tech, you might have MSFT, Intel, Cisco, AAPL, IBM, etc. Each sector would warrant an article comparing just those stocks in the sector.

    Other sectors you could look at are tobacco, aerospace, soft drinks, insurance, banking, REITS, oil, consumer household products, pharmaceuticals. Utilities could probably be subdivided somehow.

    That's a lot of possible articles, and they would be of interest to investors looking to diversify into different areas. As an example, I own LMT, but if I'd been tuned into Boeing at the time I bought LMT, I probably would have bought Boeing instead. Another example: I don't own any drug companies, so an article comparing MRK, SNY, NVS, LLY, and others would be useful to me.

    ReplyDelete
    Replies
    1. Thanks Howard for your thoughts and comments. Yes, I'm really busy but I still try to find good ideas. I also realized that KO, PEP, PM and PG are the best investment ideas but I also guess that we all own them as long-term inventors. That’s the main reason why I don’t talk about them too much. I'm now a little bit more focused on dividend growth opportunities.

      Delete
    2. I also think that some shipping stocks looking good.

      Delete
    3. Howard4/18/2016

      Tom, what did you think of my idea about just looking at one sector at a time? That would be a good way to generate some fresh articles which IMO would be of interest to a lot of people.

      You can still talk about dividend growth opportunities, but do it by comparing the stocks in a single sector. For example, devote an article to only shipping stocks.

      Delete

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