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Alberto Abaterusso
Alberto Abaterusso
Articles (2195) 

A Trio of High-Yield Stocks for the Dividend Investor

AstraZeneca tops the list

February 02, 2020 | About:

The following long-term dividend payers thrash the S&P 500 index in terms of a higher dividend yield. The benchmark for the U.S. market yields 1.81% as of Jan. 31.

Therefore, dividend investors may want to consider these companies.

AstraZeneca

The first company to have a look at is AstraZeneca PLC (NYSE:AZN).

Shares of the British drug manufacturer closed at $48.7 on Jan. 31 for a market capitalization of $127.8 billion.

Based on this share price, AstraZeneca offers a 2.87% trailing 12-month dividend yield.

In 2019, the company paid the first semi-annual dividend of 95 cents per common share on March 27 and the second semi-annual dividend of 45 cents per common share on Sept. 9. The company has been paying dividends for more than 25 years.

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

Over the past year through Jan. 31, the share price rose 32% to trade above the 100- and 200-day simple moving average lines. It is still below the 50-day line.

The 52-week range is $ 36.22 to $51.55. The 14-day relative strength index of 41 indicates that this stock is neither overbought nor oversold.

Further, the stock has a price-earnings ratio of 58.92 versus the industry median of 21.05 and a price-sales ratio of 5.04 versus the industry median of 2.5.

GuruFocus assigned a moderate rating of 4 out of 10 for the company's financial strength and a positive rating of 7 out of 10 for its profitability.

Wall Street issued an overweight recommendation rating for the stock with an average price target of $53.74 per share, reflecting 10.3% upside from Friday’s closing price.

Covanta Holding

The second company to consider is Covanta Holding Corp. (NYSE:CVA).

Shares of the Morristown, New Jersey-based provider of waste and energy services to municipal entities in North America closed at $14.98 on Jan. 31 for a market capitalization of $1.97 billion.

Based on Friday’s closing price, Covanta Holding offers a 6.68% trailing 12-month dividend yield. Currently, the company pays a quarterly dividend of 25 cents per common share. The last payment was made on Jan. 3. The company has been distributing dividends for about a decade.

The current dividend yield is quite high compared to its historical values, indicating that the stock is a profitable investment.

The share price has fallen 8% in the past year through Jan. 31 to trade below the 200-, 100- and 50-day simple moving average lines.

The 52-week range is $13.88 to $18.38. The 14-day relative strength index of 44 suggests that the stock is neither overbought nor oversold.

Moreover, the stock has a price-earnings ratio of 374.5 versus the industry median of 19.08 and a price-sales ratio of 1.05 versus the industry median of 1.37.

GuruFocus assigned the company a low financial strength rating of 3 out of 10, but a positive profitability rating of 6 out of 10.

Wall Street issued an overweight recommendation rating for shares of Covanta with an average target price of $17.5 per share, representing 16.8% upside from Friday’s closing price.

CrossAmerica Partners

The third company under consideration is CrossAmerica Partners LP (NYSE:CAPL).

Shares of the Allentown, Pennsylvania-based wholesale distributor of motor fuels traded at $18.71 at close on Jan. 31 for a market cap of $644.75 million.

Based on this share price, CrossAmerica Partners offers an 11.22% trailing 12-month dividend yield. On Feb. 10, CrossAmerica Partners will pay a quarterly cash dividend of 52.5 cents per common share. The company has been paying quarterly dividends for eight years.

The current dividend yield is quite high when compared to its historical values. This means that its stock is a profitable investment.

The share price has grown 6% in the past year through Jan. 31 to place abundantly above the 200-, 100- and 50-day simple moving average lines.

The 52-week range is $14.98 to $19.79 per share. The 14-day relative strength index of 55 indicates that the stock is neither oversold nor overbought.

The stock has a price-earnings ratio of 31.18 versus the industry median of 10.97 and a price-sales ratio of 0.3 versus the industry median of 0.92.

GuruFocus assigned a moderate rating of 4 out of 10 for the company's financial strength and of 5 out of 10 for its profitability.

Wall Street issued a hold recommendation rating for this stock with an average target price of $19.75 per share, reflecting 5.6% upside from Friday’s closing price.

Disclosure: I have no positions in any securities mentioned.

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About the author:

Alberto Abaterusso
I am a contributor at GuruFocus. I primarily write about gold, silver and precious metals mining industries. My articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. I hold a Master's Degree in Business Administration from Università degli Studi di Bari (Italy), Aldo Moro. I am based in The Netherlands.

You can follow me on Twitter at https://twitter.com/AAbaterusso

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Comments

DanaBoy
DanaBoy - 6 months ago    Report SPAM

Dividends are one thing. HORRIBLE fundamentals and valuation metrics are quite another!

Are you seriously recommending that people actually BUY these stocks?

Please leave your comment:



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