In fact, most Wall
Street strategists predict that by the end of 2017, the fed funds rate will
only be 2% at the very most. It could be even lower if economic growth slows
down between now and then.
With that scenario
very likely, solid stocks with a big yield will remain in demand. I screened
the S&P 500 index for large cap, blue chip stocks that paid a 5% dividend.
As of now, 13 stocks pay such a high yield of which 5 have also a low forward P/E and 8 a buy or better rating.
As of now, 13 stocks pay such a high yield of which 5 have also a low forward P/E and 8 a buy or better rating.
A major worry for many yield-hungry
investors is that when the Federal Reserve begins raising the federal funds
rate, market prices for any yield-producing investment can come under pressure.
When interest rates rise, the value of an existing bond or preferred stock must adjust itself lower so it has the same yield as a similarly rated new security.
When interest rates rise, the value of an existing bond or preferred stock must adjust itself lower so it has the same yield as a similarly rated new security.
A good advice from me is to avoid
stocks with high debt leverage like REITs. Those stocks are living from an
interest margin that could be destroyed.
Kinder Morgan -- Yield: 8.40%
Kinder Morgan (NYSE:KMI) employs 11,535 people, generates revenue of $16,226.00 million and has a net income of $2,443.00 million. The current market capitalization stands at $54.21 billion.Kinder Morgan’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6,764.00 million. The EBITDA margin is 41.69% (the operating margin is 27.41% and the net profit margin 15.06%).
Financials: The total debt represents 51.55% of Kinder Morgan assets and the total debt in relation to the equity amounts to 125.64%. Due to the financial situation, a return on equity of 4.35% was realized by Kinder Morgan.
Twelve trailing months earnings per share reached a value of $0.52. Last fiscal year, Kinder Morgan paid $1.74 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 45.22, the P/S ratio is 3.34 and the P/B ratio is finally 1.52. The dividend yield amounts to 8.40%.
Stock Charts:
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| Long-Term Stock Price Chart of Kinder Morgan (KMI) |
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| Long-Term Dividend Payment History of Kinder Morgan (KMI) |
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| Long-Term Dividend Yield History of Kinder Morgan (KMI) |
Williams Companies -- Yield: 6.72%
Williams Companies (NYSE:WMB) employs 6,742 people, generates revenue of $7,637.00 million and has a net income of $2,335.00 million. The current market capitalization stands at $28.57 billion.Williams Companies’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,745.00 million. The EBITDA margin is 35.94% (the operating margin is 20.54% and the net profit margin 30.57%).
Financials: The total debt represents 42.90% of Williams Companies assets and the total debt in relation to the equity amounts to 247.12%. Due to the financial situation, a return on equity of 30.94% was realized by Williams Companies.
Twelve trailing months earnings per share reached a value of $0.45. Last fiscal year, Williams Companies paid $1.40 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 84.22, the P/S ratio is 3.74 and the P/B ratio is finally 3.24. The dividend yield amounts to 6.72%.
Stock Charts:
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| Long-Term Stock Price Chart of Williams Companies (WMB) |
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| Long-Term Dividend Payment History of Williams Companies (WMB) |
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| Long-Term Dividend Yield History of Williams Companies (WMB) |
AT&T -- Yield: 5.61%
AT&T (NYSE:T) employs 281,240 people, generates revenue of $132,447.00 million and has a net income of $6,518.00 million. The current market capitalization stands at $206.34 billion.AT&T’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $32,139.00 million. The EBITDA margin is 24.27% (the operating margin is 8.87% and the net profit margin 4.92%).
Financials: The total debt represents 27.61% of AT&T assets and the total debt in relation to the equity amounts to 91.47%. Due to the financial situation, a return on equity of 6.89% was realized by AT&T.
Twelve trailing months earnings per share reached a value of $0.86. Last fiscal year, AT&T paid $1.84 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 39.25, the P/S ratio is 1.56 and the P/B ratio is finally 1.94. The dividend yield amounts to 5.61%.
Stock Charts:
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| Long-Term Stock Price Chart of AT&T (T) |
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| Long-Term Dividend Payment History of AT&T (T) |
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| Long-Term Dividend Yield History of AT&T (T) |
Welltower -- Yield: 5.54%
Welltower (NYSE:HCN) employs 438 people, generates revenue of $3,343.55 million and has a net income of $385.48 million. The current market capitalization stands at $21.08 billion.Welltower’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,717.44 million. The EBITDA margin is 51.37% (the operating margin is 25.83% and the net profit margin 11.53%).
Financials: The total debt represents 43.29% of Welltower assets and the total debt in relation to the equity amounts to 82.19%. Due to the financial situation, a return on equity of 2.59% was realized by Welltower.
Twelve trailing months earnings per share reached a value of $1.49. Last fiscal year, Welltower paid $3.18 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 40.61, the P/S ratio is 6.30 and the P/B ratio is finally 1.61. The dividend yield amounts to 5.54%.
Stock Charts:
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| Long-Term Stock Price Chart of Welltower (HCN) |
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| Long-Term Dividend Payment History of Welltower (HCN) |
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| Long-Term Dividend Yield History of Welltower (HCN) |
ConocoPhillips -- Yield: 5.43%
ConocoPhillips (NYSE:COP) employs 17,800 people, generates revenue of $52,366.00 million and has a net income of $5,807.00 million. The current market capitalization stands at $67.26 billion.ConocoPhillips’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $16,158.00 million. The EBITDA margin is 30.86% (the operating margin is 14.09% and the net profit margin 11.09%).
Financials: The total debt represents 19.36% of ConocoPhillips assets and the total debt in relation to the equity amounts to 43.47%. Due to the financial situation, a return on equity of 11.03% was realized by ConocoPhillips.
Twelve trailing months earnings per share reached a value of $-0.82. Last fiscal year, ConocoPhillips paid $2.84 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 1.28 and the P/B ratio is finally 1.29. The dividend yield amounts to 5.43%.
Stock Charts:
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| Long-Term Stock Price Chart of ConocoPhillips (COP) |
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| Long-Term Dividend Payment History of ConocoPhillips (COP) |
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| Long-Term Dividend Yield History of ConocoPhillips (COP) |
Spectra Energy -- Yield: 5.38%
Spectra Energy (NYSE:SE) employs 5,900 people, generates revenue of $5,903.00 million and has a net income of $1,283.00 million. The current market capitalization stands at $18.47 billion.Spectra Energy’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,794.00 million. The EBITDA margin is 47.33% (the operating margin is 32.59% and the net profit margin 21.73%).
Financials: The total debt represents 43.12% of Spectra Energy assets and the total debt in relation to the equity amounts to 174.38%. Due to the financial situation, a return on equity of 12.99% was realized by Spectra Energy.
Twelve trailing months earnings per share reached a value of $1.15. Last fiscal year, Spectra Energy paid $1.38 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.68, the P/S ratio is 3.13 and the P/B ratio is finally 2.26. The dividend yield amounts to 5.38%.
Stock Charts:
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| Long-Term Stock Price Chart of Spectra Energy (SE) |
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| Long-Term Dividend Payment History of Spectra Energy (SE) |
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| Long-Term Dividend Yield History of Spectra Energy (SE) |
Reynolds American -- Yield: 2.92%
Reynolds American (NYSE:RAI) employs 5,300 people, generates revenue of $8,471.00 million and has a net income of $1,445.00 million. The current market capitalization stands at $65.61 billion.Reynolds American’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,637.00 million. The EBITDA margin is 31.13% (the operating margin is 29.88% and the net profit margin 17.06%).
Financials: The total debt represents 33.45% of Reynolds American assets and the total debt in relation to the equity amounts to 112.41%. Due to the financial situation, a return on equity of 29.83% was realized by Reynolds American.
Twelve trailing months earnings per share reached a value of $2.65. Last fiscal year, Reynolds American paid $1.34 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.38, the P/S ratio is 7.75 and the P/B ratio is finally 10.79. The dividend yield amounts to 2.92%.
Stock Charts:
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| Long-Term Stock Price Chart of Reynolds American (RAI) |
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| Long-Term Dividend Payment History of Reynolds American (RAI) |
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| Long-Term Dividend Yield History of Reynolds American (RAI) |
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| 13 High-Yield Large Caps From The S&P 500 Stock Index (click to enlarge) |
