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Alberto Abaterusso
Alberto Abaterusso
Articles (2195) 

3 High-Yield Stocks for the Dividend Investor

Their dividend yields outperform the S&P 500

May 27, 2020 | About:

As of May 26, the following stocks outperform the S&P 500 index in terms of higher dividend yields. The index grants 1.99% as of the writing of this article.

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

Telefonica SA

The first company to have a look at is Telefonica SA (NYSE:TEF), a Spanish telecommunication services provider in Europe and South America.

Based on Tuesday's closing price of $4.48 per share, Telefonica grants a trailing 12-month dividend yield of 10% and a forward dividend yield of 9.93%. On June 1, the company will pay a semi-annual dividend of 22.2 cents per common share. Telefonica has paid dividends for more than two decades.

Telefonica’s current dividend yield, which is near a five-year high, indicates the stock is a profitable investment.

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

Wall Street sell-side analysts issued an overweight recommendation rating for this stock and have established an average target price of $6.63 per share.

The share price has fallen by 44% over the past year, determining a market cap of $23.26 billion and a 52-week range of $3.75 to $8.55.

The 14-day relative strength index of 46 tells that the stock is neither overbought nor oversold.

Shaw Communications Inc

The second company to have a look at is Shaw Communications Inc (NYSE:SJR), a Canadian telecommunication services provider in North America.

Based on Tuesday’s closing price of $16.67 per share, Shaw Communications grants a trailing 12-month dividend yield of 5.3% and a forward dividend yield of 5.07%. Shaw is currently paying a monthly dividend of 9.85 Canadian cents ($0.07) per common share. The company has been distributing dividends for more than three decades.

Shaw Communications’ current dividend yield is quite high compared to its historical values, which indicates that the stock is still a profitable investment.

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

Wall Street sell-side analysts issued an overweight recommendation rating for this stock and have established an average target price of $19.26 per share.

The share price has fallen by almost 20% in the past year for a market capitalization of $8.62 billion and a 52-week range of $12.20 to $21.

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

Siemens AG

The third company to have a look at is German industrial giant Siemens AG (SIEGY).

Based on Tuesday’s closing price of $53.62 per share, Siemens grants 3.95% for both the trailing 12-month dividend and the forward dividend yield. On Feb. 18, the company paid an annual dividend of $2.11 per common share. Siemens has been paying dividends for about three decades.

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

GuruFocus assigned the company a moderate financial strength rating of 5 out of 10 and a positive profitability rating of 6 out of 10.

Wall Street sell-side analysts issued an overweight recommendation rating for this stock and have set an average target price of $56.45 per share.

The share price has fallen by 8.5% over the past year, determining a market cap of $87.16 billion and a 52-week range of $31.62 to $66.74.

The 14-day relative strength index of 71 indicates the stock has not reached overbought levels yet.

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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