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Maybe The Best Dividend Stocks Of The S&P 500

Investing in indexes is a great way to avoid big risk especially when they are highly liquid like the Dow Jones or S&P 500. 

Both are survival indices because over the recent years and decades, bad companies become eliminated and good stocks were included. Today, Apple is a star in the Dow Jones. 

 By eliminating the bad stocks from the good ones, investors can create an outperformance. The only question is how do we beat the market by selected better performing stocks? 

To find the best dividend payers today, we need to divide the index into "High-yielders" and "dividend-growers". The first class of stocks pay a higher dividend but has a slow growth rate while the second group grows faster while paying only small amounts of money to shareholders. 

In addition, I run my screen for firms with solid earnings outlooks and solid fundamentals, both within the high yielders and dividend growers’ category. 

Finally, a list of nine dividend paying stocks remain. Please find attached the detailed results of the screen. Which do you like?

These are the results.....


Verizon Communications -- Yield: 4.44%

Verizon Communications (NYSE:VZ) employs 176,200 people, generates revenue of $127,079.00 million and has a net income of $11,956.00 million. The current market capitalization stands at $202.17 billion.

Verizon Communications’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $43,239.00 million. The EBITDA margin is 34.03% (the operating margin is 15.42% and the net profit margin 9.41%).

Financials: The total debt represents 48.68% of Verizon Communications assets and the total debt in relation to the equity amounts to 921.05%. Due to the financial situation, a return on equity of 37.65% was realized by Verizon Communications.

Twelve trailing months earnings per share reached a value of $2.39. Last fiscal year, Verizon Communications 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 20.72, the P/S ratio is 1.59 and the P/B ratio is finally 16.75. The dividend yield amounts to 4.44%.

Stock Charts:

Long-Term Stock Price Chart of Verizon Communications (VZ)
Long-Term Stock Price Chart of Verizon Communications (VZ)
Long-Term Dividend Payment History of Verizon Communications (VZ)
Long-Term Dividend Payment History of Verizon Communications (VZ)
Long-Term Dividend Yield History of Verizon Communications (VZ)
Long-Term Dividend Yield History of Verizon Communications (VZ)

General Motors Company -- Yield: 4.02%

General Motors Company (NYSE:GM) employs 216,000 people, generates revenue of $155,929.00 million and has a net income of $4,018.00 million. The current market capitalization stands at $57.55 billion.

General Motors Company’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7,745.00 million. The EBITDA margin is 4.97% (the operating margin is 1.11% and the net profit margin 2.58%).

Financials: The total debt represents 26.36% of General Motors Company assets and the total debt in relation to the equity amounts to 132.11%. Due to the financial situation, a return on equity of 7.48% was realized by General Motors Company.

Twelve trailing months earnings per share reached a value of $2.15. Last fiscal year, General Motors Company paid $1.20 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.91, the P/S ratio is 0.37 and the P/B ratio is finally 1.62. The dividend yield amounts to 4.02%.

Stock Charts:

Long-Term Stock Price Chart of General Motors Company (GM)
Long-Term Stock Price Chart of General Motors Company (GM)
Long-Term Dividend Payment History of General Motors Company (GM)
Long-Term Dividend Payment History of General Motors Company (GM)
Long-Term Dividend Yield History of General Motors Company (GM)
Long-Term Dividend Yield History of General Motors Company (GM)

Altria Group -- Yield: 4.01%

Altria Group (NYSE:MO) employs 9,000 people, generates revenue of $24,522.00 million and has a net income of $5,070.00 million. The current market capitalization stands at $102.07 billion.

Altria Group’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7,874.00 million. The EBITDA margin is 32.11% (the operating margin is 30.89% and the net profit margin 20.68%).

Financials: The total debt represents 42.62% of Altria Group assets and the total debt in relation to the equity amounts to 487.49%. Due to the financial situation, a return on equity of 141.82% was realized by Altria Group.

Twelve trailing months earnings per share reached a value of $2.48. Last fiscal year, Altria Group paid $2.00 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.78, the P/S ratio is 4.16 and the P/B ratio is finally 33.90. The dividend yield amounts to 4.01%.

Stock Charts:

Long-Term Stock Price Chart of Altria Group (MO)
Long-Term Stock Price Chart of Altria Group (MO)
Long-Term Dividend Payment History of Altria Group (MO)
Long-Term Dividend Payment History of Altria Group (MO)
Long-Term Dividend Yield History of Altria Group (MO)
Long-Term Dividend Yield History of Altria Group (MO)

Seagate Technology -- Yield: 3.90%

Seagate Technology (NASDAQ:STX) employs 52,100 people, generates revenue of $13,724.00 million and has a net income of $1,570.00 million. The current market capitalization stands at $17.65 billion.

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

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

Twelve trailing months earnings per share reached a value of $5.75. 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 9.81, the P/S ratio is 1.28 and the P/B ratio is finally 6.38. The dividend yield amounts to 3.90%.

Stock Charts:

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

International Paper -- Yield: 3.02%

International Paper (NYSE:IP) employs 58,000 people, generates revenue of $23,617.00 million and has a net income of $749.00 million. The current market capitalization stands at $22.27 billion.

International Paper’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,874.00 million. The EBITDA margin is 16.40% (the operating margin is 6.41% and the net profit margin 3.17%).

Financials: The total debt represents 32.68% of International Paper assets and the total debt in relation to the equity amounts to 183.25%. Due to the financial situation, a return on equity of 8.59% was realized by International Paper.

Twelve trailing months earnings per share reached a value of $2.27. Last fiscal year, International Paper paid $1.45 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.21, the P/S ratio is 0.94 and the P/B ratio is finally 4.35. The dividend yield amounts to 3.02%.

Stock Charts:

Long-Term Stock Price Chart of International Paper (IP)
Long-Term Stock Price Chart of International Paper (IP)
Long-Term Dividend Payment History of International Paper (IP)
Long-Term Dividend Payment History of International Paper (IP)
Long-Term Dividend Yield History of International Paper (IP)
Long-Term Dividend Yield History of International Paper (IP)

Principal Financial Group -- Yield: 2.92%

Principal Financial Group (NYSE:PFG) employs 14,873 people, generates revenue of $10,555.60 million and has a net income of $1,176.40 million. The current market capitalization stands at $15.49 billion.

Principal Financial Group’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,742.40 million. The EBITDA margin is 16.51% (the operating margin is 14.16% and the net profit margin 11.14%).

Financials: The total debt represents 1.17% of Principal Financial Group assets and the total debt in relation to the equity amounts to 25.13%. Due to the financial situation, a return on equity of 11.18% was realized by Principal Financial Group.

Twelve trailing months earnings per share reached a value of $4.13. Last fiscal year, Principal Financial Group 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 12.67, the P/S ratio is 1.45 and the P/B ratio is finally 1.50. The dividend yield amounts to 2.92%.

Stock Charts:

Long-Term Stock Price Chart of Principal Financial Group (PFG)
Long-Term Stock Price Chart of Principal Financial Group (PFG)
Long-Term Dividend Payment History of Principal Financial Group (PFG)
Long-Term Dividend Payment History of Principal Financial Group (PFG)
Long-Term Dividend Yield History of Principal Financial Group (PFG)
Long-Term Dividend Yield History of Principal Financial Group (PFG)

Cummins -- Yield: 2.22%

Cummins (NYSE:CMI) employs 54,600 people, generates revenue of $19,221.00 million and has a net income of $1,736.00 million. The current market capitalization stands at $25.47 billion.

Cummins’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,393.00 million. The EBITDA margin is 12.45% (the operating margin is 12.30% and the net profit margin 9.03%).

Financials: The total debt represents 10.76% of Cummins assets and the total debt in relation to the equity amounts to 21.91%. Due to the financial situation, a return on equity of 21.64% was realized by Cummins.

Twelve trailing months earnings per share reached a value of $9.33. Last fiscal year, Cummins paid $2.81 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.93, the P/S ratio is 1.33 and the P/B ratio is finally 3.30. The dividend yield amounts to 2.22%.

Stock Charts:

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

Accenture -- Yield: 2.11%

Accenture (NYSE:ACN) employs 305,000 people, generates revenue of $31,874.68 million and has a net income of $3,175.96 million. The current market capitalization stands at $64.05 billion.

Accenture’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,903.24 million. The EBITDA margin is 15.38% (the operating margin is 13.49% and the net profit margin 9.96%).

Financials: The total debt represents 0.15% of Accenture assets and the total debt in relation to the equity amounts to 0.47%. Due to the financial situation, a return on equity of 55.02% was realized by Accenture.

Twelve trailing months earnings per share reached a value of $4.57. Last fiscal year, Accenture paid $1.86 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 21.19, the P/S ratio is 2.01 and the P/B ratio is finally 11.08. The dividend yield amounts to 2.11%.

Stock Charts:

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

Rockwell Automation -- Yield: 2.09%

Rockwell Automation (NYSE:ROK) employs 22,500 people, generates revenue of $6,623.50 million and has a net income of $826.80 million. The current market capitalization stands at $16.74 billion.

Rockwell Automation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,344.60 million. The EBITDA margin is 20.30% (the operating margin is 17.12% and the net profit margin 12.48%).

Financials: The total debt represents 19.75% of Rockwell Automation assets and the total debt in relation to the equity amounts to 46.30%. Due to the financial situation, a return on equity of 31.49% was realized by Rockwell Automation.

Twelve trailing months earnings per share reached a value of $6.29. Last fiscal year, Rockwell Automation paid $2.32 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.67, the P/S ratio is 2.53 and the P/B ratio is finally 6.41. The dividend yield amounts to 2.09%.

Stock Charts:

Long-Term Stock Price Chart of Rockwell Automation (ROK)
Long-Term Stock Price Chart of Rockwell Automation (ROK)
Long-Term Dividend Payment History of Rockwell Automation (ROK)
Long-Term Dividend Payment History of Rockwell Automation (ROK)
Long-Term Dividend Yield History of Rockwell Automation (ROK)
Long-Term Dividend Yield History of Rockwell Automation (ROK)