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A Trio of High-Yield Stocks for the Dividend Investor

Their dividend yields beat the S&P 500

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Alberto Abaterusso
May 01, 2020
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As of April 30, the following stocks beat the S&P 500 index in terms of higher dividend yield. The benchmark for the U.S. market offers 2.05%.

These companies have also received positive recommendation ratings from Wall Street sell-side analysts, indicating that their share prices are predicted to perform well.

Broadcom

The first company to consider is Broadcom Inc. (

AVGO, Financial), a San Jose, California-based manufacturer and distributor of various semiconductors worldwide.

Based on Thursday's closing price of $271.62 per share, Broadcom offers a trailing 12-month dividend yield of 4.34% and a forward dividend yield of 4.79%. On March 31, the company paid a quarterly cash dividend of $3.25 per common share. Broadcom has paid dividends for about a decade.

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

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

Wall Street sell-side analysts issued an overweight recommendation rating with an average target share price of $295.68 for this stock.

The share price has declined by 14% over the past year, determining a market cap of $108.59 billion and a 52-week range of $155.67 to $331.58.

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The 14-day relative strength index of 57 tells that the stock is neither overbought nor oversold.

CareTrust REIT

The second company to consider is CareTrust REIT Inc. (

CTRE, Financial), a Clemente, California-based real estate investment trust company focusing on medical care facilities.

Based on Thursday’s closing price of $16.48 per share, CareTrust grants a trailing 12-month dividend yield of 5.61% and a forward dividend yield of 6.07%. On April 15, the company will pay a quarterly cash dividend of 25 cents per common share. CareTrust has been paying dividends for about five years.

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

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GuruFocus assigned the company a moderate financial strength rating of 4 out of 10 and a very positive profitability rating of 6 out of 10.

Wall Street sell-side analysts issued an overweight recommendation rating with an average target price of $18.25 per share for this stock.

The share price has fallen by 32% in the past year for a market cap of $1.57 billion and a 52-week range of $7.16 to $25.54.

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The 14-day relative strength index of 51 indicates that the stock is neither overbought nor oversold.

Pitney Bowes

The third company to consider is Pitney Bowes Inc. (

PBI, Financial), a Stamford, Connecticut-based provider of commerce solutions to American and international businesses.

Based on Thursday’s closing price of $3.53 per share, Pitney Bowes offers 5.67% for both the trailing 12-month dividend and the forward dividend yield. On March 9, the company paid a quarterly cash dividend of 5 cents per common share. Pitney Bowes has been paying dividends for more than three decades.

The current dividend yield of Pitney Bowes is average compared to its historical values, indicating that the stock is a profitable investment.

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

Wall Street sell-side analysts issued a hold recommendation rating with an average target share price of $3.88 for this stock.

The share price has fallen by 33.3% over the past year, determining a market cap of $604.88 million and a 52-week range of $1.67 to $7.28.

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The 14-day relative strength index of 74 indicates the stock has not reached overbought levels yet.

Disclosure: I have no positions in any securities mentioned.

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