The 10 best dividend stocks of 2017 will be large-cap stocks with a long history of providing investors with capital appreciation and a high-yield dividend that gets raised annually.
It may sound boring, but these kinds of stocks tend to outperform the broader market regardless of the interest-rate environment.
You may be tempted to look for a smaller company providing a much higher dividend yield, but you need to remember there is a risk/reward trade-off with dividends.
The higher the dividend, the greater the risk. Not only do you risk losing capital if the stock price plunges during a correction, but if the company doesn’t have a lot of money, the company could cut its dividend yield, which could also kill the share price.
One way to determine whether or not the company will be able to maintain and raise its annual dividend yield is to look at its free cash flow. This is the amount of money left over after capital expenditures.
Below is a selection of 9 stocks for dividend growth investors to watch in 2017. These stocks should do well, even when the Federal Reserve starts to raise rates.
Here are 9 dividend-paying stocks....
Omega Healthcare -- Yield: 8.60%
Omega Healthcare (NYSE:OHI) employs 58 people, generates revenue of $743.62 million and has a net income of $233.32 million. The current market capitalization stands at $5.53 billion.Omega Healthcare’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $697.18 million. The EBITDA margin is 93.75% (the operating margin is 55.31% and the net profit margin 31.38%).
Financials: The total debt represents 44.51% of Omega Healthcare assets and the total debt in relation to the equity amounts to 95.48%. Due to the financial situation, a return on equity of 8.74% was realized by Omega Healthcare.
Twelve trailing months earnings per share reached a value of $1.51. Last fiscal year, Omega Healthcare paid $2.18 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.73, the P/S ratio is 7.44 and the P/B ratio is finally 1.42. The dividend yield amounts to 8.60%.
Stock Charts:
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| Long-Term Stock Price Chart of Omega Healthcare (OHI) |
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| Long-Term Dividend Payment History of Omega Healthcare (OHI) |
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| Long-Term Dividend Yield History of Omega Healthcare (OHI) |
Royal Bank of Canada -- Yield: 3.94%
Royal Bank of Canada (NYSE:RY) employs 76,941 people, generates revenue of $16,786.56 million and has a net income of $7,404.73 million. The current market capitalization stands at $94.62 billion.Royal Bank of Canada’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $11,888.48 million. The EBITDA margin is 49.75% (the operating margin is 39.01% and the net profit margin 30.98%).
Financials: The total debt represents 12.88% of Royal Bank of Canada assets and the total debt in relation to the equity amounts to 222.55%. Due to the financial situation, a return on equity of 18.42% was realized by Royal Bank of Canada.
Twelve trailing months earnings per share reached a value of $5.07. Last fiscal year, Royal Bank of Canada paid $2.27 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.52, the P/S ratio is 3.97 and the P/B ratio is finally 2.17. The dividend yield amounts to 3.94%.
Stock Charts:
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| Long-Term Stock Price Chart of Royal Bank of Canada (RY) |
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| Long-Term Dividend Payment History of Royal Bank of Canada (RY) |
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| Long-Term Dividend Yield History of Royal Bank of Canada (RY) |
Toronto-Dominion Bank -- Yield: 3.67%
Toronto-Dominion Bank (NYSE:TD) employs 81,483 people, generates revenue of $18,338.26 million and has a net income of $5,647.71 million. The current market capitalization stands at $83.88 billion.Toronto-Dominion Bank’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9,354.50 million. The EBITDA margin is 45.41% (the operating margin is 32.87% and the net profit margin 27.41%).
Financials: The total debt represents 10.38% of Toronto-Dominion Bank assets and the total debt in relation to the equity amounts to 175.18%. Due to the financial situation, a return on equity of 13.56% was realized by Toronto-Dominion Bank.
Twelve trailing months earnings per share reached a value of $3.28. Last fiscal year, Toronto-Dominion Bank 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 13.90, the P/S ratio is 4.10 and the P/B ratio is finally 1.82. The dividend yield amounts to 3.67%.
Stock Charts:
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| Long-Term Stock Price Chart of Toronto-Dominion Bank (TD) |
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| Long-Term Dividend Payment History of Toronto-Dominion Bank (TD) |
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| Long-Term Dividend Yield History of Toronto-Dominion Bank (TD) |
PepsiCo -- Yield: 2.92%
PepsiCo (NYSE:PEP) employs 263,000 people, generates revenue of $63,056.00 million and has a net income of $5,501.00 million. The current market capitalization stands at $147.91 billion.PepsiCo’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $12,344.00 million. The EBITDA margin is 19.58% (the operating margin is 13.25% and the net profit margin 8.72%).
Financials: The total debt represents 47.78% of PepsiCo assets and the total debt in relation to the equity amounts to 279.16%. Due to the financial situation, a return on equity of 36.74% was realized by PepsiCo.
Twelve trailing months earnings per share reached a value of $4.56. Last fiscal year, PepsiCo paid $2.76 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 22.61, the P/S ratio is 2.35 and the P/B ratio is finally 12.38. The dividend yield amounts to 2.92%.
Stock Charts:
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| Long-Term Stock Price Chart of PepsiCo (PEP) |
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| Long-Term Dividend Payment History of PepsiCo (PEP) |
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| Long-Term Dividend Yield History of PepsiCo (PEP) |
Johnson & Johnson -- Yield: 2.70%
Johnson & Johnson (NYSE:JNJ) employs 127,100 people, generates revenue of $70,074.00 million and has a net income of $15,409.00 million. The current market capitalization stands at $319.42 billion.Johnson & Johnson’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $22,855.00 million. The EBITDA margin is 32.62% (the operating margin is 24.50% and the net profit margin 21.99%).
Financials: The total debt represents 14.89% of Johnson & Johnson assets and the total debt in relation to the equity amounts to 27.91%. Due to the financial situation, a return on equity of 21.87% was realized by Johnson & Johnson.
Twelve trailing months earnings per share reached a value of $5.71. Last fiscal year, Johnson & Johnson paid $2.95 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.76, the P/S ratio is 4.60 and the P/B ratio is finally 4.59. The dividend yield amounts to 2.70%.
Stock Charts:
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| Long-Term Stock Price Chart of Johnson & Johnson (JNJ) |
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| Long-Term Dividend Payment History of Johnson & Johnson (JNJ) |
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| Long-Term Dividend Yield History of Johnson & Johnson (JNJ) |
Microsoft -- Yield: 2.64%
Microsoft (NASDAQ:MSFT) employs 114,000 people, generates revenue of $85,320.00 million and has a net income of $16,798.00 million. The current market capitalization stands at $461.40 billion.Microsoft’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $27,914.00 million. The EBITDA margin is 32.72% (the operating margin is 23.28% and the net profit margin 19.69%).
Financials: The total debt represents 27.63% of Microsoft assets and the total debt in relation to the equity amounts to 74.25%. Due to the financial situation, a return on equity of 22.09% was realized by Microsoft.
Twelve trailing months earnings per share reached a value of $2.09. Last fiscal year, Microsoft paid $1.44 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 28.22, the P/S ratio is 5.38 and the P/B ratio is finally 6.40. The dividend yield amounts to 2.64%.
Stock Charts:
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| Long-Term Stock Price Chart of Microsoft (MSFT) |
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| Long-Term Dividend Payment History of Microsoft (MSFT) |
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| Long-Term Dividend Yield History of Microsoft (MSFT) |
Apple -- Yield: 2.10%
Apple (NASDAQ:AAPL) employs 116,000 people, generates revenue of $215,639.00 million and has a net income of $45,687.00 million. The current market capitalization stands at $581.62 billion.Apple’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $69,824.00 million. The EBITDA margin is 32.38% (the operating margin is 27.84% and the net profit margin 21.19%).
Financials: The total debt represents 27.05% of Apple assets and the total debt in relation to the equity amounts to 67.86%. Due to the financial situation, a return on equity of 36.90% was realized by Apple.
Twelve trailing months earnings per share reached a value of $8.28. Last fiscal year, Apple paid $2.18 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.10, the P/S ratio is 2.68 and the P/B ratio is finally 4.51. The dividend yield amounts to 2.10%.
Stock Charts:
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| Long-Term Stock Price Chart of Apple (AAPL) |
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| Long-Term Dividend Payment History of Apple (AAPL) |
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| Long-Term Dividend Yield History of Apple (AAPL) |
Walt Disney -- Yield: 1.45%
Walt Disney (NYSE:DIS) employs 185,000 people, generates revenue of $55,632.00 million and has a net income of $9,790.00 million. The current market capitalization stands at $161.48 billion.Walt Disney’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $16,885.00 million. The EBITDA margin is 30.35% (the operating margin is 25.53% and the net profit margin 17.60%).
Financials: The total debt represents 21.92% of Walt Disney assets and the total debt in relation to the equity amounts to 46.62%. Due to the financial situation, a return on equity of 21.39% was realized by Walt Disney.
Twelve trailing months earnings per share reached a value of $5.72. Last fiscal year, Walt Disney paid $1.42 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.08, the P/S ratio is 2.82 and the P/B ratio is finally 3.61. The dividend yield amounts to 1.45%.
Stock Charts:
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| Long-Term Stock Price Chart of Walt Disney (DIS) |
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| Long-Term Dividend Payment History of Walt Disney (DIS) |
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| Long-Term Dividend Yield History of Walt Disney (DIS) |
Nike -- Yield: 1.26%
Nike (NYSE:NKE) employs 70,700 people, generates revenue of $32,376.00 million and has a net income of $3,760.00 million. The current market capitalization stands at $83.98 billion.Nike’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5,164.00 million. The EBITDA margin is 15.95% (the operating margin is 13.91% and the net profit margin 11.61%).
Financials: The total debt represents 9.53% of Nike assets and the total debt in relation to the equity amounts to 16.63%. Due to the financial situation, a return on equity of 30.12% was realized by Nike.
Twelve trailing months earnings per share reached a value of $2.22. Last fiscal year, Nike paid $0.62 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 22.91, the P/S ratio is 2.61 and the P/B ratio is finally 6.97. The dividend yield amounts to 1.26%.
Stock Charts:
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| Long-Term Stock Price Chart of Nike (NKE) |
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| Long-Term Dividend Payment History of Nike (NKE) |
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| Long-Term Dividend Yield History of Nike (NKE) |