In other words, the numbers are nice, but they’re far from secure. That means you have to ratchet down your yield expectations … but not all the way.
Yes, the S&P 500’s dividend yield stands at just 2.15%, so the bar is low. But once you get past that mental roadblock, a number of names emerge as relatively high-paying, reliable dividend stocks to buy for equity income.
A history of rising dividends is of particular concern to any income investors who plans to stick around a while. These stocks fit that description. They also have the free cash flow generation to make good on the payouts quarter after quarter, year after year.
Lastly, except for one name, these stocks all yield 3% or more while offering acceptable risk. And if shareholders can stay patient long enough, they might even find themselves holding some total-return machines. Without further ado, here are the top 10 S&P 500 dividend stocks to buy now:
AT&T -- Yield: 4.88%
AT&T (NYSE:T) employs 277,200 people, generates revenue of $146,801.00 million and has a net income of $13,687.00 million. The current market capitalization stands at $230.64 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 $2.32. 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 16.19, the P/S ratio is 1.65 and the P/B ratio is finally 1.97. The dividend yield amounts to 4.88%.
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) |
General Motors Company -- Yield: 4.84%
General Motors Company (NYSE:GM) employs 215,000 people, generates revenue of $152,356.00 million and has a net income of $9,615.00 million. The current market capitalization stands at $50.04 billion.General Motors Company’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $13,545.00 million. The EBITDA margin is 8.89% (the operating margin is 3.51% and the net profit margin 6.31%).
Financials: The total debt represents 32.47% of General Motors Company assets and the total debt in relation to the equity amounts to 158.29%. Due to the financial situation, a return on equity of 25.72% was realized by General Motors Company.
Twelve trailing months earnings per share reached a value of $7.82. Last fiscal year, General Motors Company 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 4.10, the P/S ratio is 0.32 and the P/B ratio is finally 1.18. The dividend yield amounts to 4.84%.
Stock Charts:
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| Long-Term Stock Price Chart of General Motors Company (GM) |
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| Long-Term Dividend Payment History of General Motors Company (GM) |
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| Long-Term Dividend Yield History of General Motors Company (GM) |
Chevron -- Yield: 4.20%
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 $191.10 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 14.57% of Chevron assets and the total debt in relation to the equity amounts to 25.24%. 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 $-0.40. 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 not calculable, the P/S ratio is 1.48 and the P/B ratio is finally 1.25. The dividend yield amounts to 4.20%.
Stock Charts:
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| Long-Term Stock Price Chart of Chevron (CVX) |
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| Long-Term Dividend Payment History of Chevron (CVX) |
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| Long-Term Dividend Yield History of Chevron (CVX) |
International Paper -- Yield: 3.93%
International Paper (NYSE:IP) employs 56,000 people, generates revenue of $22,365.00 million and has a net income of $800.00 million. The current market capitalization stands at $19.25 billion.International Paper’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,667.00 million. The EBITDA margin is 16.40% (the operating margin is 8.87% and the net profit margin 3.58%).
Financials: The total debt represents 30.36% of International Paper assets and the total debt in relation to the equity amounts to 238.67%. Due to the financial situation, a return on equity of 20.85% was realized by International Paper.
Twelve trailing months earnings per share reached a value of $1.87. Last fiscal year, International Paper paid $1.64 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 25.14, the P/S ratio is 0.86 and the P/B ratio is finally 5.44. The dividend yield amounts to 3.93%.
Stock Charts:
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| Long-Term Stock Price Chart of International Paper (IP) |
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| Long-Term Dividend Payment History of International Paper (IP) |
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| Long-Term Dividend Yield History of International Paper (IP) |
Altria Group -- Yield: 3.89%
Altria Group (NYSE:MO) employs 8,800 people, generates revenue of $25,434.00 million and has a net income of $5,243.00 million. The current market capitalization stands at $128.18 billion.Altria Group’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $8,873.00 million. The EBITDA margin is 34.89% (the operating margin is 31.98% and the net profit margin 20.61%).
Financials: The total debt represents 39.71% of Altria Group assets and the total debt in relation to the equity amounts to 448.58%. Due to the financial situation, a return on equity of 177.50% was realized by Altria Group.
Twelve trailing months earnings per share reached a value of $2.88. Last fiscal year, Altria Group paid $2.17 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 22.12, the P/S ratio is 4.81 and the P/B ratio is finally 42.64. The dividend yield amounts to 3.89%.
Stock Charts:
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| Long-Term Stock Price Chart of Altria Group (MO) |
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| Long-Term Dividend Payment History of Altria Group (MO) |
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| Long-Term Dividend Yield History of Altria Group (MO) |
Pfizer -- Yield: 3.67%
Pfizer (NYSE:PFE) employs 97,900 people, generates revenue of $48,851.00 million and has a net income of $6,974.00 million. The current market capitalization stands at $195.19 billion.Pfizer’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $18,788.00 million. The EBITDA margin is 38.46% (the operating margin is 21.14% and the net profit margin 14.28%).
Financials: The total debt represents 23.24% of Pfizer assets and the total debt in relation to the equity amounts to 60.10%. Due to the financial situation, a return on equity of 10.22% was realized by Pfizer.
Twelve trailing months earnings per share reached a value of $1.13. Last fiscal year, Pfizer paid $1.12 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 28.56, the P/S ratio is 4.06 and the P/B ratio is finally 3.12. The dividend yield amounts to 3.67%.
Stock Charts:
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| Long-Term Stock Price Chart of Pfizer (PFE) |
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| Long-Term Dividend Payment History of Pfizer (PFE) |
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| Long-Term Dividend Yield History of Pfizer (PFE) |
Wells Fargo -- Yield: 3.38%
Wells Fargo (NYSE:WFC) employs 267,900 people, generates revenue of $49,277.00 million and has a net income of $23,276.00 million. The current market capitalization stands at $227.50 billion.Wells Fargo’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $40,501.00 million. The EBITDA margin is 47.06% (the operating margin is 39.09% and the net profit margin 27.05%).
Financials: The total debt represents 16.62% of Wells Fargo assets and the total debt in relation to the equity amounts to 153.92%. Due to the financial situation, a return on equity of 12.78% was realized by Wells Fargo.
Twelve trailing months earnings per share reached a value of $4.03. Last fiscal year, Wells Fargo paid $1.48 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.18, the P/S ratio is 2.64 and the P/B ratio is finally 1.34. The dividend yield amounts to 3.38%.
Stock Charts:
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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) |
QUALCOMM -- Yield: 3.21%
QUALCOMM (NASDAQ:QCOM) employs 33,000 people, generates revenue of $25,281.00 million and has a net income of $5,268.00 million. The current market capitalization stands at $100.10 billion.QUALCOMM’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7,350.00 million. The EBITDA margin is 29.07% (the operating margin is 22.12% and the net profit margin 20.84%).
Financials: The total debt represents 21.59% of QUALCOMM assets and the total debt in relation to the equity amounts to 34.91%. Due to the financial situation, a return on equity of 14.93% was realized by QUALCOMM.
Twelve trailing months earnings per share reached a value of $3.41. Last fiscal year, QUALCOMM paid $1.80 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.91, the P/S ratio is 3.85 and the P/B ratio is finally 3.21. The dividend yield amounts to 3.21%.
Stock Charts:
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| Long-Term Stock Price Chart of QUALCOMM (QCOM) |
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| Long-Term Dividend Payment History of QUALCOMM (QCOM) |
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| Long-Term Dividend Yield History of QUALCOMM (QCOM) |
General Electric -- Yield: 3.17%
General Electric (NYSE:GE) employs 333,000 people, generates revenue of $117,385.00 million and has a net income of $1,701.00 million. The current market capitalization stands at $258.89 billion.General Electric’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $15,699.00 million. The EBITDA margin is 13.37% (the operating margin is 7.96% and the net profit margin 1.45%).
Financials: The total debt represents 40.08% of General Electric assets and the total debt in relation to the equity amounts to 201.07%. Due to the financial situation, a return on equity of 1.47% was realized by General Electric.
Twelve trailing months earnings per share reached a value of $1.06. Last fiscal year, General Electric paid $0.92 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 27.38, the P/S ratio is 2.21 and the P/B ratio is finally 2.77. The dividend yield amounts to 3.17%.
Stock Charts:
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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) |
Merck -- Yield: 2.96%
Merck (NYSE:MRK) employs 68,000 people, generates revenue of $39,498.00 million and has a net income of $4,459.00 million. The current market capitalization stands at $167.26 billion.Merck’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $20,379.00 million. The EBITDA margin is 51.60% (the operating margin is 13.97% and the net profit margin 11.29%).
Financials: The total debt represents 25.98% of Merck assets and the total debt in relation to the equity amounts to 59.12%. Due to the financial situation, a return on equity of 9.52% was realized by Merck.
Twelve trailing months earnings per share reached a value of $1.83. Last fiscal year, Merck paid $1.81 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 33.52, the P/S ratio is 4.35 and the P/B ratio is finally 3.87. The dividend yield amounts to 2.96%.
Stock Charts:
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| Long-Term Stock Price Chart of Merck (MRK) |
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| Long-Term Dividend Payment History of Merck (MRK) |
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| Long-Term Dividend Yield History of Merck (MRK) |
