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Alberto Abaterusso
Alberto Abaterusso
Articles (2265) 

A Trio of High Yield Stocks for the Dividend Investor

Their dividend yields more than double the S&P 500

July 02, 2020 | About:

Dividend investors may want to consider the following stocks, as they are currently topping the S&P 500 index in terms of higher dividend yields. The benchmark for the U.S. market offers an average yield of 1.91% as of July 1.

Furthermore, Wall Street sell-side analysts have issued positive recommendation ratings for these stocks, indicating their share prices are expected to move higher.

FirstEnergy Corp

The first company that qualifies is FirstEnergy Corp (NYSE:FE), an Akron, Ohio-based producer and distributor of electricity in the U.S.

Based on Wednesday's closing price of $39.88 per share, FirstEnergy Corp grants a trailing 12-month dividend yield of 3.86% and a forward dividend yield of 3.91%. The company is currently paying a quarterly dividend of 39 cents per common share. FirstEnergy Corp has paid dividends for more than 15 years.

When compared to its historical values, FirstEnergy Corp’s current dividend yield is about average. This indicates that this stock is a profitable investment.

GuruFocus assigned the company a low financial strength rating of 3 out of 10 and a positive profitability rating of 6 out of 10.

The stock has a buy recommendation rating and an average target price of $48.83 per share on Wall Street.

The share prices have decreased 9% over the past year, determining a market capitalization of $21.61 billion and a 52-week range of $32 to $52.52.

The stock has a 14-day relative strength index of 49, which indicates that the share price is neither overbought nor oversold.

Edison International

The second company to consider is Edison International (NYSE:EIX), a Rosemead, California-based regulated supplier of electricity in the U.S.

Based on Wednesday’s closing price of $55.33 per share, Edison International grants a trailing 12-month dividend yield of 4.52% and a forward dividend yield of 4.61%. On July 31, the electricity company will pay a quarterly dividend of 63.8 cents per common share. Edison International has distributed dividends for nearly 20 years.

Edison International’s current dividend yield is about average compared to its historical values, suggesting that the stock is a profitable investment.

GuruFocus assigned the company a low financial strength rating of 3 out of 10 and a positive profitability rating of 5 out of 10.

As of July, the stock holds eight buy recommendation ratings and seven hold recommendation ratings on Wall Street. The average target price is $70.14 per share.

The share price has declined 18.2% over the past year, determining a market capitalization of $20.13 billion and a 52-week range of $43.63 to $78.93.

The 14-day relative strength index of 44 indicates that the stock is neither overbought nor oversold.

New Jersey Resources Corp

The third company that holds the above listed criteria is New Jersey Resources Corp (NYSE:NJR), a Wall Township, New Jersey-based regulated distributor of gas, supplier of energy services and midstream operator with activities located primarily in New Jersey.

Based on Wednesday’s closing price of $32.22 per share, New Jersey Resources grants a dividend yield of 3.89% on a trailing 12-month and forward basis. Currently, the company pays a quarterly dividend of 31.3 cents per common share. New Jersey Resources Corp has been paying dividends for nearly 30 years.

According to GuruFocus data, New Jersey Resources’ current dividend yield is slightly higher than it was in recent years.

GuruFocus assigned the company a low financial strength rating of 3 out of 10 and a positive profitability rating of 5 out of 10.

The stock has a hold recommendation rating on Wall Street with an average target price of $38.75 per share.

The share price has fallen 35.6% in the past year for a market capitalization of $3.09 billion and a 52-week range of $21.14 to $51.20.

The 14-day relative strength index of 48 indicates the stock is neither overbought nor oversold.

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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