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The 3 Highest Yielding Dividend Stocks From The S&P 500

It’s good to have stocks with dividends. Dividends give you a passive income and improve your quality of life. Some of you don’t have enough money to live off dividends and they try to close the gap by choosing only high-yields.

The higher the yield of a stock, the less capital you need for an acceptable return. But high-yields often have the problem that they are not sustainable, especially when the market capitalization is low and the debt high.

We’ve seen this problem with Pitney Bowes, a very popular Dividend Aristocrat who yields for months over 10 percent until they decided to reduce the dividend by a half. For sure, they still pay a good dividend but your passive income is also significant lower.

Today I show you the highest yielding stocks from the S&P 500 with the best buy ratings. Only 13 companies survived the strong market gain since the beginning of the year. Last year, the number of high-yields within the popular index was over 20!

Below the top results are many telecom service companies as well as electric utilities. Five of the results have a current buy or better rating.

Here are the highest yielding stocks from the screen:



The Goodyear Tire & Rubber (GT)
has a market capitalization of $3.91 billion. The company employs 69,000 people, generates revenue of $20.992 billion and has a net income of $237.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.664 billion. The EBITDA margin is 7.93 percent (the operating margin is 2.10 percent and the net profit margin 1.13 percent).

Financial Analysis: The total debt represents 29.97 percent of the company’s assets. Due to the financial situation, a return on equity of 307.56 percent was realized. Twelve trailing months earnings per share reached a value of $0.82. For the fiscal year, the company should paid $2.94 in the form of dividends to shareholders. The company revert to pay dividends. It's the first time since November 2002.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.68, the P/S ratio is 0.18 and the P/B ratio is finally not calculable. The dividend yield amounts to 19.20 percent and the beta ratio has a value of 2.64.

Windstream (WIN) has a market capitalization of $4.93 billion. The company employs 13,787 people, generates revenue of $6.156 billion and has a net income of $168.70 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.277 billion. The EBITDA margin is 37.00 percent (the operating margin is 14.45 percent and the net profit margin 2.74 percent).

Financial Analysis: The total debt represents 64.34 percent of the company’s assets and the total debt in relation to the equity amounts to 814.31 percent. Due to the financial situation, a return on equity of 12.70 percent was realized. Twelve trailing months earnings per share reached a value of $0.27. Last fiscal year, the company 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 30.99, the P/S ratio is 0.80 and the P/B ratio is finally 4.42. The dividend yield amounts to 12.03 percent and the beta ratio has a value of 0.89.

Frontier Communications (FTR) has a market capitalization of $4.21 billion. The company employs 14,400 people, generates revenue of $5.011 billion and has a net income of $153.31 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.367 billion. The EBITDA margin is 47.24 percent (the operating margin is 18.07 percent and the net profit margin 3.06 percent).

Financial Analysis: The total debt represents 50.43 percent of the company’s assets and the total debt in relation to the equity amounts to 217.71 percent. Due to the financial situation, a return on equity of 3.12 percent was realized. Twelve trailing months earnings per share reached a value of $0.16. Last fiscal year, the company paid $0.40 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 26.96, the P/S ratio is 0.84 and the P/B ratio is finally 1.03. The dividend yield amounts to 9.48 percent and the beta ratio has a value of 0.77.

Take a closer look at the full list of the highest yielding stocks from the S&P 500 with buy or better rating. The average P/E ratio amounts to 19.50 and forward P/E ratio is 13.43. The dividend yield has a value of 7.20 percent. Price to book ratio is 2.18 and price to sales ratio 1.41. The operating margin amounts to 18.73 percent and the beta ratio is 0.85. Stocks from the list have an average debt to equity ratio of 2.0.

Related stock ticker symbols:

GT, WIN, FTR, CTL, FE, GRMN, POM, RAI, PBI, TE, PPL, LO, T

Selected Articles:

· 17 High Yields With Additional Potential To Grow Dividends

· 12 Really Cheap Stocks With Extraordinary High Yields (+10%)

· 19 High Yielding Income Growth Stocks With Low Debt Ratios

· 10 Stocks With Very High Yields And Expected Earnings Growth

*If you would like to receive more dividend stock ideas and the free Dividend Weekly, you should subscribe to my free e-mail list. Alternatively, you can follow me onFacebookor Twitter.High Yields From The S&P 500 and the best buy ratings originally published at long-term-investments.blogspot.com.

About the author:

Dividend
I am a private full time investor searching for investments and investment ideas.

Visit Dividend's Website


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