The following companies may be appealing to dividend investors as their stocks are supplying higher dividend yields than the S&P 500 Index. The S&P 500 dividend yields 1.78% as of Friday, Oct. 2.
Furthermore, Wall Street sell-side analysts have issued positive ratings for these stocks, suggesting that their share prices are expected to perform well over the coming months.
Exxon Mobil
The first company that outperforms the S&P 500 Index is Exxon Mobil Corp. (XOM, Financial), the Irving, Texas-based producer of crude oil and natural gas.
Based on Friday's closing price of $32.98 per share, Exxon Mobil grants trailing 12-month and forward dividend yields of 10.54%. The company is currently paying a quarterly dividend of 87 cents per common share. Exxon Mobil has paid dividends for about two decades.
Acquiring shares of Exxon Mobil still appears a profitable activity as of Oct. 2, as the current dividend yield is high compared to its historical values.
GuruFocus assigned the company a positive score of 5 out of 10 for its financial strength rating and another positive score of 6 out of 10 for its profitability.
The stock has a hold recommendation rating with an average target price of $46.82 per share on Wall Street.
The share price has lost 52.2% over the past year, determining a market capitalization of $139.45 billion and a 52-week range of $30.11 to $75.18.
The stock is oversold, as signaled by a 14-day relative strength index of 25.
Vereit
The second company that outperforms the S&P 500 index is Vereit Inc. (VER, Financial), a Phoenix-based real estate investment trust company.
Based on Friday's closing price of $6.94 per share, Vereit grants a trailing 12-month dividend yield of 7.05% and a forward dividend yield of 4.44%. On Oct. 15, the company will pay a quarterly dividend of 7.7 cents per common share, representing a 44.2% decline from the previous distribution. The company has been paying dividends for about 10 years.
Currently, the dividend yield is on par with its historical median, as the below chart exhibits. Thus, investing in this stock still seems profitable.
GuruFocus assigned the REIT a low financial strength rating of 3 out of 10, but a moderate profitability rating of 4 out of 10.
The stock has an overweight recommendation rating with an average target price of $7.39 per share on Wall Street.
The past 12 months of trading have pushed the share price down 31%, determining a market capitalization of $7.48 billion and a 52-week price range of $3.56 to $10.18.
The 14-day RSI of 57 indicates that the stock is neither overbought nor oversold.
Hewlett Packard Enterprise
The third company that outperforms the benchmark for the U.S. market is Hewlett Packard Enterprise Co. (HPE, Financial), the San Jose, California-based multinational manufacturer and seller of computer hardware and software, and provider of IT services and consulting services.
Based on Friday's closing price of $9.42 per share, Hewlett Packard Enterprise grants a yield of 5.11% for both the trailing 12-month dividend and forward dividend. The company is currently distributing a quarterly dividend of 27 cents per common share. Hewlett Packard Enterprise has paid dividends for about three years.
As the below chart illustrates, the current dividend yield is high compared to its past historical values, indicating the investing in this stock is still a profitable activity.
GuruFocus assigned the company a moderate financial strength rating of 4 out of 10 and a positive profitability rating of 5 out of 10.
The stock has a hold recommendation rating with an average target price of $11.25 per share on Wall Street.
The share price has declined 34.6% over the past year, determining a market capitalization of $12.12 billion and a 52-week range of $7.43 to $17.59.
With a 14-day RSI of 50, the stock seems to be neither overbought nor oversold.
Disclosure: I have no positions in any securities mentioned.
Read more here:
- A Trio of Mid-Cap Stock With Low Price-Book Ratios
- A Trio of High Earnings Yield Stocks to Consider
- 3 Low Forward Price-Earnings Ratio Stocks
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