As of Friday, the following long-term dividend payers offer a dividend yield that thrashes the S&P 500's yield of 1.77%. Therefore, dividend investors may want to consider increasing their holdings in these companies.
The Toronto-Dominion Bank
The first company to have a look at is The Toronto-Dominion Bank (TD, Financial).
Shares of the Canadian provider of personal and commercial banking products and services traded around a price of $56.49 per unit at close on Jan. 3 for a market capitalization of $102.39 billion.
Based on this share price, The Toronto-Dominion Bank offers a 3.87% trailing 12-month dividend yield and a 3.97% forward dividend yield.
Currently, the company pays a quarterly cash dividend of 74 cents in Canadian dollars (57 cents USD) per common share. The last payment occurred on Oct. 31, 2019, while the next dividend will be paid on Jan. 31, 2020 to shareholders of record as of Jan. 10. The company has been paying dividends for more than three decades.
The current dividend yield of The Toronto-Dominion Bank is quite high compared to its historical values. It is near its 10-year high, suggesting that this stock is a profitable investment.
In the past 52 weeks through Jan. 3, the share price rose 11% to trade slightly above the 100-day simple moving average line. It is still below the 200- and 50-day SMA lines.
The 52-week range is $49.59 to $59.55. The 14-day relative strength index of 51 indicates that this stock is neither overbought nor oversold.
The stock has a price-earnings ratio of 11.74 versus the industry median of 12.07 and a price-sales ratio of 3.29 versus the industry median of 2.98.
GuruFocus assigned a moderate rating of 4 out of 10 for the company's financial strength and a positive rating of 5 out of 10 for its profitability.
Wall Street issued a buy recommendation rating for this stock with an average price target of $85.00, reflecting a 50.5% upside.
Glencore plc
The second company to consider is Glencore plc (GLCNF, Financial).
Shares of the Switzerland-based commodity trading and mining company closed at a price of $3.13 per unit on Jan. 3 for a market capitalization of $42.33 billion.
Based on Friday’s closing price, Glencore offers a 6.39% yield for both the trailing 12-month dividend and the forward dividend. The company currently pays a 10 cents semi-annual cash dividend per common share. The last payment was made on Sept. 24, 2019. Glencore has been distributing dividends for the past eight years.
The current dividend yield of Glencore is approaching the three-year high, indicating that the stock is a profitable investment.
The share price has fallen 15% in the past year through Jan. 3, but it is still above the 100- and 50-day simple moving average lines.
The 52-week range is $2.66 to $4.49. The 14-day relative strength index of 54 suggests the stock is neither overbought nor oversold.
The stock has a price-earnings ratio of 39.94 versus the industry median of 14 and a price-sales ratio of 0.2 versus the industry median of 1.4.
GuruFocus assigned the company a moderate financial strength rating of 4 out of 10 and a positive profitability rating of 6 out of 10.
Wall Street issued an overweight recommendation rating for shares of Glencore plc with an average target price of $3.72, representing a 18.8% upside.
Realty Income
The third company under consideration is Realty Income Corporation (O, Financial).
Shares of the San Diego, California-based real estate owner were trading at $73.79 per unit at close on Jan. 3 for a market capitalization of $24.05 billion.
Based on this share price, Realty Income grants a 3.7% forward dividend yield and a 3.68% trailing 12-month dividend yield. Currently, Realty Income pays a monthly cash dividend of 22.8 cents per common share. The last payment was sent out to its shareholders on Dec. 13, 2019. The next one will occur on Jan. 15, 2020. The company has been paying dividends for more than 25 years.
The current dividend yield of Realty Income is not the highest when compared to its historical values.
The share price has increased by 18% in the past year through Jan. 3 to place slightly above the 200-day simple moving average line and below the 100- and 50-day SMA lines.
The 52-week range is $61.99 to $82.17 per share. The 14-day relative strength index of 48 suggests the stock is neither oversold nor overbought.
The stock has a price-earnings ratio of 57.2 versus the industry median of 17.92 and a price-sales ratio of 15.84 versus the industry median of 8.01.
GuruFocus assigned a moderate rating of 4 out of 10 for the company's financial strength and a high rating of 8 out of 10 for its profitability.
Wall Street issued an overweight recommendation rating for this stock with an average target price of $82.13 per share, reflecting an 11.3% upside.
Disclosure: I have no positions in any securities mentioned.
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