Dividend investors may be interested in the following stocks, as they are currently outperforming the S&P 500 index in terms of higher dividend yields. The benchmark for the U.S. market grants a dividend yield of 1.92% as of June 19.
Furthermore, these stocks hold positive recommendation ratings on Wall Street, indicating that they are expected to deliver improved margin returns.
Entergy Corp
The first company to consider is Entergy Corp (ETR, Financial), a New Orleans, Louisiana-based producer and distributor of power in the U.S.
Based on Friday's closing price of $94.52 per share, Entergy offers a trailing 12-month dividend yield of 3.91% and a forward dividend yield of 3.94%. The company is currently paying a quarterly dividend of 93 cents per common share. Entergy has been distributing dividends for more than 25 years.
Entergy’s current dividend yield is quite high when compared to its historical values, suggesting that this stock is a profitable investment.
GuruFocus assigned the company a low financial strength rating of 3 out of 10 but a positive profitability rating of 6 out of 10.
The stock holds an overweight recommendation rating on Wall Street with an average target price of $114.06 per share.
The share price has fallen by 9.3% over the past year for a market capitalization of $18.92 billion and a 52-week range of $75.20 to $135.55.
The 14-day relative strength index of about 40 indicates that the stock is still far from oversold levels.
National Fuel Gas Co
The second company to consider is National Fuel Gas Co (NFG, Financial), a Williamsville, New York-based oil and natural gas integrated operator.
Based on Friday’s closing price of $40.68 per share, National Fuel Gas grants a trailing 12-month dividend yield of 4.28% and a forward dividend yield of 4.38%. On July 15, the energy company will pay a quarterly dividend of 44.5 cents per common share. National Fuel Gas Co has been paying dividends for more than 30 years.
National Fuel Gas’ current dividend yield is quite high compared to its historical values.
GuruFocus assigned the company a moderate financial strength rating of 4 out of 10 and a positive profitability rating of 6 out of 10.
The stock holds an overweight recommendation rating on Wall Street. The average target price is $48 per share.
The share price has fallen by 25.5% in the past year, determining a market capitalization of $3.7 billion and a 52-week range of $31.58 to $61.22.
The 14-day relative strength index of 45 indicates that the stock is still far from oversold levels.
Franchise Group Inc
The third company to consider is Franchise Group Inc (FRG, Financial), a Virginia-based operator of franchised businesses.
Based on Friday’s closing price of $24.65 per share, Franchise Group grants a trailing 12-month dividend yield of 3.04% and a forward dividend yield of 4.06%. On July 22, the company will pay a quarterly dividend of 25 cents per common share. Franchise Group has been paying dividends for about five years.
Franchise Group’s current dividend yield is about average compared to historical levels.
GuruFocus assigned the company a low financial strength rating of 3 out of 10 and a good profitability rating of 7 out of 10.
The stock has a hold recommendation rating on Wall Street.
The share price has risen 164.5% in the past year, which determined a market cap of $866.73 million and a 52-week range of $5.75 to $27.49.
The 14-day relative strength index of 67 indicates the stock is neither overbought nor oversold.
Disclosure: I have no positions in any securities mentioned.
Read more here:
- A Trio of Stocks With Low Price-Book Ratios
- 3 High Earnings Yield Stocks for the Value Investor
- 3 Low Forward Price-Earnings Ratio Stocks for the Value Investor
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