The Best Dividend Paying Mega-Capitalized Stocks

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Mar 22, 2012
Mega-capitalized stocks, companies with a market capitalization over USD200 billion, are very rare. Only 12 companies are listed on the stock exchanges and 9 pay dividends. Apple (AAPL, Financial), Google (GOOG, Financial) and Berkshire Hathaway (BRK.A, Financial)(BRK.B, Financial) are the only stocks with no dividend payments. Apple recently announced to pay a regular quarter dividend of USD2.65, representing a yield of 1.76 percent. What I like to say is that mega caps are well diversified and big dividend payers. Let’s take a look at these 12 companies and their fundamentals.


Here are my favorite stocks:



1. International Business Machines (IBM)
has a market capitalization of $237.17 billion. The company employs 433,362 people, generates revenues of $106,916.00 million and has a net income of $15,855.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $26,266.00 million. Because of these figures, the EBITDA margin is 24.57 percent (operating margin 19.64 percent and the net profit margin finally 14.83 percent).


The total debt representing 26.90 percent of the company’s assets and the total debt in relation to the equity amounts to 155.54 percent. Due to the financial situation, a return on equity of 73.43 percent was realized. Twelve trailing months earnings per share reached a value of $13.08. Last fiscal year, the company paid $2.90 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 15.65, P/S ratio 2.21 and P/B ratio 11.77. Dividend Yield: 1.47 percent. The beta ratio is 0.66.


2. Wal-Mart Stores (WMT) has a market capitalization of $207.40 billion. The company employs 2,100,000 people, generates revenues of $446,950.00 million and has a net income of $16,454.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $34,688.00 million. Because of these figures, the EBITDA margin is 7.76 percent (operating margin 5.94 percent and the net profit margin finally 3.68 percent).


The total debt representing 27.62 percent of the company’s assets and the total debt in relation to the equity amounts to 74.92 percent. Due to the financial situation, a return on equity of 22.55 percent was realized. Twelve trailing months earnings per share reached a value of $4.54. Last fiscal year, the company paid $1.46 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 13.33, P/S ratio 0.47 and P/B ratio 2.93. Dividend Yield: 2.61 percent. The beta ratio is 0.34.


3. Exxon Mobil Corporation (XOM) has a market capitalization of $405.38 billion. The company employs 82,100 people, generates revenues of $486,429.00 million and has a net income of $42,206.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $89,087.00 million. Because of these figures, the EBITDA margin is 18.31 percent (operating margin 15.06 percent and the net profit margin finally 8.68 percent).


The total debt representing 5.15 percent of the company’s assets and the total debt in relation to the equity amounts to 11.03 percent. Due to the financial situation, a return on equity of 27.26 percent was realized. Twelve trailing months earnings per share reached a value of $8.42. Last fiscal year, the company paid $1.85 in form of dividends to shareholders.


Here are the price ratios of the company: The P/E ratio is 10.22, P/S ratio 0.84 and P/B ratio 2.66. Dividend Yield: 2.16 percent. The beta ratio is 0.50.


Take a closer look at the full table the best dividend paying mega capitalized stocks. The average price to earnings ratio (P/E ratio) amounts to 13.62 and forward P/E ratio is 11.36. The dividend yield has a value of 3.05 percent. Price to book ratio is 3.45 and price to sales ratio 2.07. The operating margin amounts to 20.60 percent. Sales of the mega caps grew 12.81 percent over the past five years and earnings per share exceeded the growth with a value of 14.20 percent.


Related stock ticker symbols:

AAPL, XOM, MSFT, PTR, IBM, RDS.B, CHL, CVX, GE, GOOG, WMT, BRK.A


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· 16 Global Brand Companies With Highest Dividend Yield

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· 15 High Yield Large Caps With Best Margin

·16 Cheapest High Yield Large Cap Stocks – An Overview