Over the past century, they’ve accounted for roughly half of total returns earned by stock investors. And if stock returns flatten out over the next few years, as many economists anticipate, dividends will matter even more in driving growth for investors.
But these days, it’s unusually difficult to find dividend-paying stocks that look like good buys.
Stock valuations in the category are lofty after years of outperforming the broader market. The forward price/earnings ratio of the top 25% of S&P 500 stocks by dividend yield is 17, vs. a 36-year average of 12.
And the dividends themselves can seem relatively stingy: The number of companies increasing their dividend has been shrinking, and the number of decreases is accelerating. And there’s also the danger that if interest rates rise, as is expected, investors could flee the sector and send stocks careening downward.
With those in mind, we asked ourself what could be the best investment ideas for 2017. Here are 11 stocks where the experts see opportunity and safety.
These are the results...
VF Corp -- Yield: 2.93%
VF Corp (NYSE:VFC) employs 64,000 people, generates revenue of $12,376.74 million and has a net income of $1,231.59 million. The current market capitalization stands at $23.52 billion.VF Corp’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,072.45 million. The EBITDA margin is 16.74% (the operating margin is 13.42% and the net profit margin 9.95%).
Financials: The total debt represents 19.24% of VF Corp assets and the total debt in relation to the equity amounts to 34.44%. Due to the financial situation, a return on equity of 22.36% was realized by VF Corp.
Twelve trailing months earnings per share reached a value of $2.88. Last fiscal year, VF Corp paid $1.33 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.92, the P/S ratio is 1.92 and the P/B ratio is finally 4.55. The dividend yield amounts to 2.93%.
Stock Charts:
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| Long-Term Stock Price Chart of VF Corp (VFC) |
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| Long-Term Dividend Payment History of VF Corp (VFC) |
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| Long-Term Dividend Yield History of VF Corp (VFC) |
PepsiCo -- Yield: 2.93%
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 $148.68 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 22.53, the P/S ratio is 2.34 and the P/B ratio is finally 12.34. The dividend yield amounts to 2.93%.
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) |
Microsoft -- Yield: 2.54%
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 $475.03 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 29.35, the P/S ratio is 5.59 and the P/B ratio is finally 6.66. The dividend yield amounts to 2.54%.
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) |
Medtronic -- Yield: 2.38%
Medtronic (NYSE:MDT) employs 88,000 people, generates revenue of $28,833.00 million and has a net income of $3,538.00 million. The current market capitalization stands at $99.78 billion.Medtronic’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $8,813.00 million. The EBITDA margin is 30.57% (the operating margin is 18.35% and the net profit margin 12.27%).
Financials: The total debt represents 31.21% of Medtronic assets and the total debt in relation to the equity amounts to 59.74%. Due to the financial situation, a return on equity of 6.72% was realized by Medtronic.
Twelve trailing months earnings per share reached a value of $3.01. Last fiscal year, Medtronic paid $1.52 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.99, the P/S ratio is 3.46 and the P/B ratio is finally 1.94. The dividend yield amounts to 2.38%.
Stock Charts:
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| Long-Term Stock Price Chart of Medtronic (MDT) |
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| Long-Term Dividend Payment History of Medtronic (MDT) |
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| Long-Term Dividend Yield History of Medtronic (MDT) |
Schlumberger -- Yield: 2.37%
Schlumberger (NYSE:SLB) employs 95,000 people, generates revenue of $35,527.00 million and has a net income of $2,135.00 million. The current market capitalization stands at $116.70 billion.Schlumberger’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9,542.00 million. The EBITDA margin is 26.86% (the operating margin is 8.13% and the net profit margin 6.01%).
Financials: The total debt represents 27.94% of Schlumberger assets and the total debt in relation to the equity amounts to 53.32%. Due to the financial situation, a return on equity of 5.64% was realized by Schlumberger.
Twelve trailing months earnings per share reached a value of $-1.84. Last fiscal year, Schlumberger 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 not calculable, the P/S ratio is 3.30 and the P/B ratio is finally 2.97. The dividend yield amounts to 2.37%.
Stock Charts:
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| Long-Term Stock Price Chart of Schlumberger (SLB) |
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| Long-Term Dividend Payment History of Schlumberger (SLB) |
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| Long-Term Dividend Yield History of Schlumberger (SLB) |
Air Products & Chemical -- Yield: 2.35%
Air Products & Chemical (NYSE:APD) employs 18,300 people, generates revenue of $9,524.40 million and has a net income of $1,545.70 million. The current market capitalization stands at $32.12 billion.Air Products & Chemical’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3,116.50 million. The EBITDA margin is 32.72% (the operating margin is 22.04% and the net profit margin 16.23%).
Financials: The total debt represents 34.48% of Air Products & Chemical assets and the total debt in relation to the equity amounts to 87.93%. Due to the financial situation, a return on equity of 21.15% was realized by Air Products & Chemical.
Twelve trailing months earnings per share reached a value of $6.97. Last fiscal year, Air Products & Chemical paid $3.39 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 21.32, the P/S ratio is 3.35 and the P/B ratio is finally 4.50. The dividend yield amounts to 2.35%.
Stock Charts:
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| Long-Term Stock Price Chart of Air Products & Chemical (APD) |
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| Long-Term Dividend Payment History of Air Products & Chemical (APD) |
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| Long-Term Dividend Yield History of Air Products & Chemical (APD) |
Union Pacific -- Yield: 2.28%
Union Pacific (NYSE:UNP) employs 43,154 people, generates revenue of $21,813.00 million and has a net income of $4,772.00 million. The current market capitalization stands at $87.89 billion.Union Pacific’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $10,064.00 million. The EBITDA margin is 46.14% (the operating margin is 36.91% and the net profit margin 21.88%).
Financials: The total debt represents 26.01% of Union Pacific assets and the total debt in relation to the equity amounts to 68.60%. Due to the financial situation, a return on equity of 22.78% was realized by Union Pacific.
Twelve trailing months earnings per share reached a value of $4.99. Last fiscal year, Union Pacific paid $2.20 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 21.31, the P/S ratio is 4.02 and the P/B ratio is finally 4.36. The dividend yield amounts to 2.28%.
Stock Charts:
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| Long-Term Stock Price Chart of Union Pacific (UNP) |
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| Long-Term Dividend Payment History of Union Pacific (UNP) |
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| Long-Term Dividend Yield History of Union Pacific (UNP) |
Comcast -- Yield: 1.59%
Comcast (NASDAQ:CMCSA) employs 153,000 people, generates revenue of $74,510.00 million and has a net income of $8,413.00 million. The current market capitalization stands at $165.94 billion.Comcast’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $24,678.00 million. The EBITDA margin is 33.12% (the operating margin is 21.39% and the net profit margin 11.29%).
Financials: The total debt represents 31.59% of Comcast assets and the total debt in relation to the equity amounts to 100.67%. Due to the financial situation, a return on equity of 15.55% was realized by Comcast.
Twelve trailing months earnings per share reached a value of $3.41. Last fiscal year, Comcast paid $1.00 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.33, the P/S ratio is 2.23 and the P/B ratio is finally 3.77. The dividend yield amounts to 1.59%.
Stock Charts:
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| Long-Term Stock Price Chart of Comcast (CMCSA) |
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| Long-Term Dividend Payment History of Comcast (CMCSA) |
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| Long-Term Dividend Yield History of Comcast (CMCSA) |
Nike -- Yield: 1.38%
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 $84.63 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 23.51, the P/S ratio is 2.68 and the P/B ratio is finally 7.15. The dividend yield amounts to 1.38%.
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) |
Costco Wholesale -- Yield: 1.19%
Costco Wholesale (NASDAQ:COST) employs 126,000 people, generates revenue of $118,719.00 million and has a net income of $2,376.00 million. The current market capitalization stands at $66.92 billion.Costco Wholesale’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,927.00 million. The EBITDA margin is 4.15% (the operating margin is 3.09% and the net profit margin 2.00%).
Financials: The total debt represents 16.69% of Costco Wholesale assets and the total debt in relation to the equity amounts to 45.82%. Due to the financial situation, a return on equity of 20.71% was realized by Costco Wholesale.
Twelve trailing months earnings per share reached a value of $5.33. Last fiscal year, Costco Wholesale paid $1.70 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 28.86, the P/S ratio is 0.56 and the P/B ratio is finally 5.47. The dividend yield amounts to 1.19%.
Stock Charts:
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| Long-Term Stock Price Chart of Costco Wholesale (COST) |
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| Long-Term Dividend Payment History of Costco Wholesale (COST) |
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| Long-Term Dividend Yield History of Costco Wholesale (COST) |