1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Alberto Abaterusso
Alberto Abaterusso
Articles (1853) 

A Trio of High Dividend Yield Stocks to Consider

General Mills tops the list

January 14, 2020 | About:

Dividend investors may want to consider the following securities, as their dividend yields outperform the S&P 500 yield (1.74% as of Jan. 13), which is often considered as a benchmark for the U.S. stock market.

General Mills

The first company to consider is General Mills Inc (NYSE:GIS).

Shares of the Minneapolis, Minnesota-based global manufacturer and marketer of branded consumer foods closed at a price of $53.06 per unit on Jan. 13 for a market capitalization of $32.09 billion.

Based on Monday's closing price, General Mills offers a 3.69% yield for the trailing 12-month dividend and 3.75% for the forward dividend. The company currently pays a 49 cents quarterly cash dividend per common share. The next payment will be made on Feb. 3, 2020. General Mills has been distributing dividends for the past 35 years.

The current dividend yield of General Mills is quite high relative to its past values, indicating that the stock is a profitable investment.

The share price has increased 27% in the past year through Jan. 13 to place slightly above the 200-, 100- and 50-day simple moving average lines.

The 52-week range is $41.42 to $56.4. The 14-day relative strength index of 53 suggests the stock is neither overbought nor oversold.

Further, the stock has a price-earnings ratio of 15.25 versus the industry median of 19.76 and a price-sales ratio of 1.93 versus the industry median of 0.91.

GuruFocus assigned the company a moderate financial strength rating of 4 out of 10 and a high profitability rating of 8 out of 10.

Wall Street issued a hold recommendation rating for this stock with an average target share price of $55.53, representing a 5% upside.

Outfront Media

Another company to have a look at is Outfront Media Inc (NYSE:OUT).

Shares of the New York-based large outdoor media operator of billboards and transit displays traded around a price of $28.18 per unit at close on Jan. 13 for a market capitalization of $4.04 billion.

Based on Monday’s closing share price, Outfront Media offers a 5.11% yield for both the trailing 12-month dividend and the forward dividend.

Currently, the company pays a quarterly cash dividend of 36 cents per common share. The last payment was made on Dec. 31, 2019. The company has been paying dividends for six years.

The current dividend yield of Outfront Media is high compared to its historical values, suggesting that this stock is a profitable investment.

In the past 12 months through Jan. 13, the share price rose 39% to trade above the 200-, 100- and 50-day simple moving average lines.

The 52-week range is $20.07 to $28.42. The 14-day relative strength index of 75 indicates that the stock is approaching overbought levels.

The stock has a price-earnings ratio of 26.58 versus the industry median of 17.87 and a price-sales ratio of 2.29 versus the industry median of 7.97.

GuruFocus assigned a low rating of 3 out of 10 for the company's financial strength but a positive rating of 6 out of 10 for its profitability.

Wall Street issued an overweight recommendation rating for this stock with an average price target of $29.67, reflecting a 5.3% upside.

Star Group

The third company under consideration is Star Group LP (NYSE:SGU).

Shares of the Stanford, Connecticut-based provider of home heating oil and propane in the United States were trading at $9.33 per unit at close on Jan. 13 for a market capitalization of $434.5 million.

Based on Monday’s closing share price, Star Group grants a 5.31% forward dividend yield and a 5.3% trailing 12-month dividend yield. Currently, Star Group pays a quarterly cash dividend of 12.5 cents per common share. The last payment was made to shareholders on Nov. 5, 2019. The company has been paying dividends for about two decades.

The current dividend yield of Star Group is near its five-year high, enhancing the likelihood that investors are dealing with a profitable stock.

The share price was flat in the past year through Jan. 13. It is below the 200-, 100- and 50-day simple moving average lines.

The 52-week range is $8.91 to $10.25 per share. The 14-day relative strength index of 44 suggests the stock is neither oversold nor overbought.

Further, the stock has a price-earnings ratio of 233.25 versus the industry median of 11.16 and a price-sales ratio of 0.28 versus the industry median of 0.96.

GuruFocus assigned a positive rating of 5 out of 10 for the company's financial strength and of 6 out of 10 for its profitability.

Wall Street issued a buy recommendation rating for this stock with an average target price of $13.00 per share, reflecting a nearly 40% upside.

Disclosure: I have no positions in any securities mentioned.

Read more here:

Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here

About the author:

Alberto Abaterusso
If somebody asks what being a value investor means, Alberto Abaterusso would answer, “The value investor is not just the possessor of the security that represents the company, but he is the owner of that company. As an owner of the company the value investor is actively involved in the dynamics of that company and his first concern is how to have sales progressively growing. Also, the value investor is probably one of the most demanding persons in the world concerning sales.”

Abaterusso is a freelance writer based in The Netherlands. He primarily writes about gold, silver and precious metals mining stocks. His articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. Alberto holds an MBA from Università degli Studi di Bari (Italy), Aldo Moro.

Rating: 0.0/5 (0 votes)

Comments

Please leave your comment:



Performances of the stocks mentioned by Alberto Abaterusso


User Generated Screeners


pjmason14Momentum
pascal.van.garsseHigh FCF-M2
kosalmmuse6
kosalmmuseBest one1
DBrizanall 2019Feb26
kosalmmuseBest one
DBrizanall 2019Feb25
kosalmmuseNice
kosalmmusehan
MsDale*52-Week Low
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
/* */