The following long-term dividend payers outperform the S&P 500 Index significantly in terms of a higher dividend yield. The benchmark for the U.S. market yields 1.97% as of Feb. 28.
Thus, dividend investors should have a look at these companies.
Novartis
The first company that meets the above criteria is Novartis AG (NVS, Financial).
The Swiss drug major traded at a price of $83.96 per share at maket close on Feb. 28 for a market capitalization of $188.45 billion.
Based on Friday's closing price, Novartis grants a trailing 12-month dividend yield of 3.4% and a forward dividend yield of 3.62%. The company paid an annual dividend of $2.834 per common share on March 13, 2019. The next payment of $3.042 will be sent out to shareholders (of record as of March 4) on March 12. Novartis AG has been distributing dividends for almost three decades.
Novartis' current dividend yield is quite high compared to its historical values, indicating that the stock is a profitable investment.
The share price has risen 7% in the past year through Feb. 28, but following the selloff that characterized the stock market over the past week, the stock now trades well below the 200-, 100- and 50-day simple moving average lines.
The 52-week range is $74.97 to $99.84. The 14-day relative strength index of 20 suggests the stock trespassed oversold levels.
Further, the stock has a price-earnings ratio of 16.25 versus the industry median of 21.56 and a price-sales ratio of 3.91 versus the industry median of 2.47.
GuruFocus assigned the company a moderate financial strength rating of 5 out of 10 and a positive profitability rating of 7 out of 10.
Wall Street issued an overweight recommendation rating for this stock with an average target price per share of $102.69.
Kellogg
The second company that meets the criteria is Kellogg Co. (K, Financial).
Shares of the Battle Creek, Michigan-based global manufacturer and marketer of ready-to-eat cereal and convenience foods were trading at a price of $60.47 per share when the market close on Feb. 28 for a market capitalization of $20.68 billion.
Based on Friday’s closing price, Kellogg grants a 3.74% trailing dividend yield and a 3.77% forward dividend yield. Currently, the company pays a quarterly dividend of 57 cents per common share. The next payment of the same amount will be made on March 16. The company has been paying dividends for 35 years.
The current dividend yield of Kellogg is quite high compared to its historical values, indicating that buying shares of this stock is a profitable investment.
Shares gained 11% over the past year through Feb. 28, but as a result of a general downturn in the U.S. stock market over the last week, its share price retracted to valuations below the 200-, 100- and 50-day simple moving average lines.
The 52-week range is $51.34 to $71.05. The 14-day relative strength index of 25 indicates the stock is below oversold levels.
The stock has a price-earnings ratio of 21.6 versus the industry median of 19.48 and a price-sales ratio of 1.53 versus the industry median of 0.89.
GuruFocus assigned a moderate rating of 4 out of 10 for the company's financial strength, but a very positive rating of 7 out of 10 for its profitability.
Wall Street issued an overweight recommendation rating for this stock with an average price target of $66.65.
Children's Place
The third company that meets the above-listed criteria is Children's Place Inc. (PLCE, Financial).
Shares of the Secaucus, New Jersey-based retailer, which sells children's clothes, were trading at $57.6 each at close on Feb. 28 for a market capitalization of $867.73 million.
Based on Friday’s closing price, Children's Place offers a 3.89% yield for both the trailing 12-month and the forward dividend. Currently, the company pays a quarterly dividend of 56 cents per common share. The company has been paying dividends for about six years.
The current dividend yield of Children's Place is rated "good" by GuruFocus and is near a 10-year high, suggesting the stock is a profitable investment.
The stock has fallen 32% in the past year through Feb. 28 to trade below the 200-, 100- and 50-day simple moving average lines.
The 52-week range is $53.62 to $116.84. The 14-day relative strength index is 32, suggesting the stock is close to oversold levels.
The stock has a price-earnings ratio of 14.81 versus the industry median of 17.11 and a price-sales ratio of 0.49 versus the industry median of 0.55.
GuruFocus assigned the company a moderate financial strength rating of 5 out of 10 and a high profitability rating of 8 out of 10.
Wall Street issued an overweight recommendation rating for the stock with an average target price of $68 per share.
Disclosure: I have no positions in any securities mentioned.
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