Dividend investors may be interested in the following stocks, as they are currently beating the S&P 500 index in terms of more fruitful dividend yields. The benchmark for the U.S. market offers a dividend yield of 1.84% as of July 20.
Furthermore, these stocks received positive recommendation ratings on Wall Street, indicating that they are predicted to deliver good performances over the months ahead.
Tesco PLC
The first company that qualifies is Tesco PLC (TSCDY, Financial), a British grocery store retailer.
Based on Monday's closing price of $8.28 per share, Tesco PLC offers a trailing 12-month dividend yield of 4.14% and a forward dividend yield of 5.86%. Currently, the company distributes a semi-annual dividend of 24.3 cents per common share. Tesco PLC has paid dividends for about 25 years.
A comparison with historical values shows that Tesco PLC’s current dividend yield is about average, suggesting that the stock is a profitable investment.
GuruFocus assigned the company a positive score of 5 out of 10 for both the financial strength rating and profitability rating.
The stock has an overweight recommendation rating and an average target price of $10.42 per share on Wall Street.
The share prices have declined 6.4% over the past year for a market capitalization of $27.03 billion and a 52-week range of $7.03 to $10.39.
The stock is neither oversold nor overbought, as it has a 14-day relative strength index of 47.
Deluxe Corp
The second company under consideration is Deluxe Corp (DLX, Financial), a Shoreview, Minnesota-based provider of advertising services to small businesses and financial institutions.
Based on Monday’s closing price of $20.36 per share, Deluxe Corp grants trailing 12-month and forward dividend yields of 5.9%. The advertising agency is currently paying a quarterly dividend of 30 cents per common share. Deluxe Corp has distributed dividends for nearly 30 years.
Deluxe Corp’s current dividend yield is about average compared to its historical values.
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.
The stock has an overweight recommendation rating with an average target price of $37 per share on Wall Street.
The share price has fallen by 51.4% over the past year, determining a market capitalization of $851.69 million and a 52-week range of $18.90 to $54.15.
The 14-day relative strength index of 42 indicates that the stock is neither overbought nor oversold.
Suburban Propane Partners LP
The third company that investors may want to consider is Suburban Propane Partners LP (SPH, Financial), a Whippany, New Jersey-based distributor of fuel oil, propane and refined fuels.
Based on Monday’s closing price of $14.29 per share, Suburban Propane Partners LP offers trailing 12-month and forward dividend yields of 16.79%. Currently, the company pays a quarterly dividend of 60 cents per common share. Suburban Propane Partners LP has been paying dividends for nearly 24 years.
Suburban Propane Partners LP’s current dividend yield is quite high compared to its historical values, which indicates that the 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 has a hold recommendation rating on Wall Street and an average target price of $18 per share.
The share price has fallen 40% over the past year for a market capitalization of $887.76 million and a 52-week range of $8.64 to $24.89.
The 14-day relative strength index of 48 tells that the stock is neither overbought nor oversold.
Disclosure: I have no positions in any securities mentioned.
Read more here:
- 3 Low Price-Book Ratio Stocks to Consider
- A Trio of High Earnings Yield Stocks for the Value Investor
- A Trio of Low Forward Price-Earnings Ratio Stocks
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