An Overview of the Safest and Best Yielding Large Cap Dividend Stocks

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May 03, 2012
Stocks with low beta ratios are less volatile than the market. If they pay a good yield, could there a better investment? I made a screen of the best yielding large capitalized stocks (over USD10 billion) with a beta ratio of less than 0.5. The ratio summarizes all stocks with a share price performance that represents not more than the half performance of the market.


Exactly 45 companies fulfilled these criteria but only 18 have a yield of more than 4%.


Here are my favorite stocks:


Plains All American Pipelines (PAA, Financial) has a market capitalization of $12.66 billion. The company employs 3,800 people, generates revenues of $34,275.00 million and has a net income of $994.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,530.00 million. Because of these figures, the EBITDA margin is 4.46 percent (operating margin 3.79 percent and the net profit margin finally 2.90 percent).


Financial Analysis: The total debt representing 33.80 percent of the company’s assets and the total debt in relation to the equity amounts to 95.39 percent. Due to the financial situation, a return on equity of 15.47 percent was realized. Twelve trailing months earnings per share reached a value of $4.93. Last fiscal year, the company paid $3.91 in form of dividends to shareholders.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.52, P/S ratio 0.39 and P/B ratio 2.44. Dividend Yield: 5.08 percent. The beta ratio is 0.49.


Altria Group (MO, Financial) has a market capitalization of $65.87 billion. The company employs 9,900 people, generates revenues of $23,800.00 million and has a net income of $3,393.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $6,321.00 million. Because of these figures, the EBITDA margin is 26.56 percent (operating margin 25.50 percent and the net profit margin finally 14.26 percent).


Financial Analysis: The total debt representing 37.04 percent of the company’s assets and the total debt in relation to the equity amounts to 371.98 percent. Due to the financial situation, a return on equity of 76.13 percent was realized. Twelve trailing months earnings per share reached a value of $1.67. Last fiscal year, the company paid $1.58 in form of dividends to shareholders.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.42, P/S ratio 2.77 and P/B ratio 18.01. Dividend Yield: 5.06 percent. The beta ratio is 0.41.


PG&E Corporation (PCG) has a market capitalization of $18.21 billion. The company employs 19,274 people, generates revenues of $14,956.00 million and has a net income of $858.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,157.00 million. Because of these figures, the EBITDA margin is 27.79 percent (operating margin 12.98 percent and the net profit margin finally 5.74 percent).


Financial Analysis: The total debt representing 27.91 percent of the company’s assets and the total debt in relation to the equity amounts to 114.75 percent. Due to the financial situation, a return on equity of 7.22 percent was realized. Twelve trailing months earnings per share reached a value of $2.11. Last fiscal year, the company paid $1.82 in form of dividends to shareholders.


Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.95, P/S ratio 1.24 and P/B ratio 1.51. Dividend Yield: 4.12 percent. The beta ratio is 0.29.


Take a closer look at the full table of the safest Large Caps with best yields. The average price to earnings ratio (P/E ratio) amounts to 18.31 and forward P/E ratio is 15.61. The dividend yield has a value of 5.22 percent. Price to book ratio is 2.94 and price to sales ratio 2.08. The operating margin amounts to 19.34 percent.


Related stock ticker symbols:

NLY, CHT, KMP, PPL, PAA, MO, AEP, FE, DUK, PGN, LO, PEG, OKS, SO, PCG, ED, BMY, D


Selected Articles:

· Cheapest Large Caps With Highest Expected Growth As Of April 2012

· 8 Large Cap High Yields Below Book Value

· The Best Yielding Large Cap Dividends With Lowest Debt

· 13 Large Cap Dividend Stocks At New 52-Week-Highs