As of April 9, the following stocks top the S&P 500 index in terms of higher dividend yield. The benchmark for the U.S. market grants 2.14%.
These companies have also received overweight recommendation ratings from Wall Street sell-side analysts, indicating that their share prices are foreseen to outperform.
Telenor ASA
The first company under consideration is Telenor ASA (TELNY, Financial).
The Norwegian global telecommunication services company’s stock was trading at a price of $15.22 per share on April 9 for a market capitalization of $21.65 billion.
Based on Thursday's closing price, Telenor grants a trailing 12-month dividend yield of 6.16% and a forward dividend yield of 6.28%. On June 2, the company is scheduled to pay a semi-annual dividend of 47.8 cents per common share, which is a 9.4% hike from the previous payment. Telenor ASA has paid dividends for almost two decades.
The current dividend yield is near a three-year high when it is compared to its historical values.
GuruFocus assigned the company a low financial strength rating of 3 out of 10 but a very good profitability rating of 7 out of 10.
Wall Street sell-side analysts have produced an average target price of $16.87, reflecting a nearly 11% upside from the current share price levels.
The share price is down about 24.4% over the past year, as you can see in the below chart.
The 52-week range is $12.61 to $22.27. The 14-day relative strength index of 53 indicates the stock is neither overbought nor oversold.
Amcor
The second company under consideration is Amcor PLC (AMCR, Financial).
The stock of the Swiss manufacturer and seller of various packaging products for a broad range of consumer goods end markets worldwide was trading at a price of $9.16 per share at close on April 9 for a market capitalization of $14.69 billion.
Based on Thursday’s closing price, Amcor grants a 3.82% yield for the trailing 12-month dividend yield and a 5.01% yield for the forward dividend. Currently, the company pays an 11.5 cents quarterly cash dividend per common share. Amcor has been paying dividends since 2014.
The current dividend yield of Amcor is the highest compared to its historical values, suggesting that the stock is a profitable investment.
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 sell-side analysts have established an average target price of $10.16, which represents a nearly 11% rise from the current share price levels.
The share price is about 18% down over the past year, as you can see in the below chart.
The 52-week range is $5.80 to $11.77. The 14-day relative strength index of 59 indicates the stock is neither overbought nor oversold.
UGI Corp
The third company under consideration is UGI Corp (UGI, Financial).
The stock of the King of Prussia, Pennsylvania-based distributor of energy products in the U.S. and internationally was trading at a price of $30.04 per share at close on April 9 for a market capitalization of $6.26 billion.
Based on Thursday’s closing price, UGI Corp grants a trailing 12-month dividend yield of 4.25% and a forward dividend yield of 4.34%. Currently, the company pays a 32.5 cents quarterly cash dividend per common share. UGI Corp has been paying dividends for about 35 years.
The below chart illustrates that the dividend yield of UGI Corp is quite high compared to its historical values over the past 18 years, suggesting that the stock is a profitable investment.
GuruFocus assigned the company a low financial strength rating of 3 out of 10 but a very high profitability rating of 8 out of 10.
Wall Street sell-side analysts have set an average target price of $41.50, mirroring 38% growth from the current share price levels.
The share price is the result of a 43.2% decline over the past year, as you can see in the below chart.
The 52-week range is $21.75 to $56.49. The 14-day relative strength index of 55 indicates the stock is neither overbought nor oversold.
Disclosure: I have no positions in any securities mentioned.
Read more here:
- A Trio of Stocks That Have Grown Sales Fast
- Three Potentially Undervalued Stocks
- A Trio of High Earnings Return Stocks
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