It’s my general experience because I saw their business models and know that large capitalized companies are a compilation of several small and mid caps. Look at Procter & Gamble. They have a huge brand portfolio under the P&G corporate brand and a big part of them generate sales over a billion U.S. Dollar and employs thousands of people.
I believe that a compilation of 10 or 20 mid caps could be a better investment for investors because they can benefit from the corporate diversification. For sure, the price they pay is a lower performance compared to pureblooded stocks with a single business model. Stable dividends and systematic growth is my major focus and most of them are generated by higher capitalized stocks. That's the result of my research.
Today I like to give you an overview of the yields from mega caps. Those are companies with a market capitalization above the USD 200 billion mark. Only 20 listed companies have such a big market capitalization and 18 of them pay good dividends; 16 have a buy or better recommendation.
Here are my favorite stocks:
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General Electric (NYSE:GE) has a market capitalization of $241.97 billion. The company employs 305,000 people, generates revenue of $147.359 billion and has a net income of $14.902 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $29.339 billion. The EBITDA margin is 19.91 percent (the operating margin is 11.81 percent and the net profit margin 10.11 percent).
Financial Analysis: The total debt represents 60.42 percent of the company’s assets and the total debt in relation to the equity amounts to 336.56 percent. Due to the financial situation, a return on equity of 12.24 percent was realized. Twelve trailing months earnings per share reached a value of $1.43. Last fiscal year, the company paid $0.70 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.26, the P/S ratio is 1.63 and the P/B ratio is finally 1.97. The dividend yield amounts to 3.27 percent and the beta ratio has a value of 1.67.
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| Long-Term Stock Price Chart Of General Electric (GE) |
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| Long-Term Dividend Payment History of General Electric (GE) |
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| Long-Term Dividend Yield History of General Electric (GE) |
Wells Fargo (NYSE:WFC) has a market capitalization of $208.39 billion. The company employs 274,300 people, generates revenue of $48.391 billion and has a net income of $19.368 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $35.295 billion. The EBITDA margin is 72.94 percent (the operating margin is 33.07 percent and the net profit margin 22.50 percent).
Financial Analysis: The total debt represents 12.97 percent of the company’s assets and the total debt in relation to the equity amounts to 117.14 percent. Due to the financial situation, a return on equity of 13.16 percent was realized. Twelve trailing months earnings per share reached a value of $3.53. Last fiscal year, the company paid $0.88 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.12, the P/S ratio is 2.42 and the P/B ratio is finally 1.43. The dividend yield amounts to 3.06 percent and the beta ratio has a value of 1.38.
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| Long-Term Stock Price Chart Of Wells Fargo (WFC) |
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| Long-Term Dividend Payment History of Wells Fargo (WFC) |
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| Long-Term Dividend Yield History of Wells Fargo (WFC) |
The Procter & Gamble (NYSE:PG) has a market capitalization of $219.81 billion. The company employs 126,000 people, generates revenue of $83.680 billion and has a net income of $9.317 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $19.124 billion. The EBITDA margin is 22.85 percent (the operating margin is 15.88 percent and the net profit margin 11.13 percent).
Financial Analysis: The total debt represents 22.52 percent of the company’s assets and the total debt in relation to the equity amounts to 46.94 percent. Due to the financial situation, a return on equity of 13.86 percent was realized. Twelve trailing months earnings per share reached a value of $3.97. Last fiscal year, the company paid $2.14 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.21, the P/S ratio is 2.63 and the P/B ratio is finally 3.54. The dividend yield amounts to 3.00 percent and the beta ratio has a value of 0.47.
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| Long-Term Stock Price Chart Of The Procter & Gamble (PG) |
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| Long-Term Dividend Payment History of The Procter & Gamble (PG) |
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| Long-Term Dividend Yield History of The Procter & Gamble (PG) |
Take a closer look at the full list of dividend paying mega caps. The average P/E ratio amounts to 16.78
and forward P/E ratio is 12.80. The dividend yield has a value of 3.26 percent.
Price to book ratio is 2.84 and price to sales ratio 2.37. The operating margin
amounts to 19.01 percent and the beta ratio is 0.79. Stocks from the list have
an average debt to equity ratio of 0.70.
Here is the full table with
some fundamentals (TTM):
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| Mega Caps and their Dividends (Click to enlarge) |
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Related stock
ticker symbols:
HBC, RDS-B, T, CHL, NVS, PFE, GE, CVX, WFC, JNJ, PG, PTR, AAPL, XOM,
MSFT, WMT, IBM, TM, BRK-A, GOOG
Selected Articles:
*I am long GE, JNJ, PG, WMT.
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.