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The Safest Dividend Stocks From The Services Sector With Top Yields

The safest stocks from the services sector with high yields originally published at "long-term-investments.blogspot.com". Today I like to continue with my monthly session of the safest dividend stocks. Now I like to analyze the services sector. It’s a big source to find stocks because there are 870 companies listed.

I love it when stocks have reached a critical mass to finance future growth with own economics of scale. Being big is also a great competitive advantage which is hard to copy when the industry is still consolidated.

Large caps with a lower volatility than the market (beta below one) are available for investors. 28 in total have such a wonderful ratio of which 12 are recommended to buy. Linked are the 20 top yielding stocks.

Here are my favorite stocks:
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Time Warner Cable (NYSE:TWC) has a market capitalization of $28.83 billion. The company employs 47,300 people, generates revenue of $21.386 billion and has a net income of $2.159 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7.709 billion. The EBITDA margin is 36.05 percent (the operating margin is 20.78 percent and the net profit margin 10.10 percent).

Financial Analysis: The total debt represents 53.58 percent of the company’s assets and the total debt in relation to the equity amounts to 366.66 percent. Due to the financial situation, a return on equity of 29.10 percent was realized. Twelve trailing months earnings per share reached a value of $6.88. Last fiscal year, the company paid $2.24 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.18, the P/S ratio is 1.34 and the P/B ratio is finally 3.99. The dividend yield amounts to 2.66 percent and the beta ratio has a value of 0.75.




Wal-Mart Stores (NYSE:WMT) has a market capitalization of $253.16 billion. The company employs 2,200,000 people, generates revenue of $469.162 billion and has a net income of $17.756 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $36.302 billion. The EBITDA margin is 7.74 percent (the operating margin is 5.93 percent and the net profit margin 3.78 percent).

Financial Analysis: The total debt represents 26.65 percent of the company’s assets and the total debt in relation to the equity amounts to 70.91 percent. Due to the financial situation, a return on equity of 23.02 percent was realized. Twelve trailing months earnings per share reached a value of $5.02. Last fiscal year, the company paid $1.59 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.21, the P/S ratio is 0.54 and the P/B ratio is finally 3.32. The dividend yield amounts to 2.46 percent and the beta ratio has a value of 0.34.




W.W. Grainger (NYSE:GWW) has a market capitalization of $15.43 billion. The company employs 21,100 people, generates revenue of $8.950 billion and has a net income of $698.85 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.290 billion. The EBITDA margin is 14.42 percent (the operating margin is 12.64 percent and the net profit margin 7.81 percent).

Financial Analysis: The total debt represents 11.26 percent of the company’s assets and the total debt in relation to the equity amounts to 18.67 percent. Due to the financial situation, a return on equity of 23.97 percent was realized. Twelve trailing months earnings per share reached a value of $9.51. Last fiscal year, the company paid $3.06 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.33, the P/S ratio is 1.73 and the P/B ratio is finally 5.10. The dividend yield amounts to 1.44 percent and the beta ratio has a value of 0.88.



Take a closer look at the full list of the safest stocks from the services sector. The average P/E ratio amounts to 22.33 and forward P/E ratio is 14.34. The dividend yield has a value of 2.74 percent. Price to book ratio is 5.31 and price to sales ratio 1.71. The operating margin amounts to 13.76 percent and the beta ratio is 0.74. Stocks from the list have an average debt to equity ratio of 0.93.

Here is the full table with some fundamentals (TTM):

20 Safest Dividend Stocks From The Services Sector

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Related stock ticker symbols:
PSO, RUK, SJR, PAYX, SYY, MCD, UPS, KSS, GPC, TWC, CAH, WMT, HD, TGT, YUM, KR, CNI, CVS, ABC, GWW

Selected Articles:

*I am long SYY, MCD, WMT, YUM. I receive no compensation to write about these specific stocks, sector or theme. I don't plan to increase or decrease positions or obligations within the next 72 hours.

For the other stocks: 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.