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Alberto Abaterusso
Alberto Abaterusso
Articles (2528) 

A Trio of High Dividend Yield Stock Picks

Income investors could be interested in this trio outperforming the S&P 500's dividend yield

October 27, 2020 | About:

Dividend investors may be attracted by the three stocks listed below, as these securities are supplying higher dividend yields than the S&P 500 Index, more than doubling the benchmark for the U.S. market. The S&P 500 dividend yields 1.73% as of Monday, Oct. 26.

Furthermore, Wall Street sell-side analysts have issued positive recommendation ratings for these stocks, indicating that their share prices are predicted to move up over the months ahead.

3M Co

The first company that beats the S&P 500 Index is 3M Co (NYSE:MMM), a Saint Paul, Minnesota-based international conglomerate.

Based on Monday's closing price of $166.16 per share, 3M Co grants a trailing 12-month dividend yield of 3.52% and a forward dividend yield of 3.54%. The company is currently paying a quarterly dividend of $1.47 per common share. 3M Co has paid dividends for about 30 years.

Currently, the dividend yield is quite high compared to its historical values, as the below chart exhibits.

GuruFocus assigned the company a score of 5 out of 10 for its financial strength and of 9 out of 10 for its profitability.

As of October, Wall Street recommends four strong buy ratings, one buy rating, seven hold ratings and three underperform ratings. The average target price is $170.19 per share.

The share price has decreased by 1.7% over the past year, determining a market capitalization of $95.71 billion and a 52-week range of $114.04 to $182.55.

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

Consolidated Edison Inc

The second company that beats the S&P 500 index is Consolidated Edison Inc (NYSE:ED), a New York-based regulated distributor of electricity, gas and steam in the United States.

Based on Monday's closing price of $82.74 per share, Consolidated Edison Inc grants a trailing 12-month dividend yield of 3.67% and a forward dividend yield of 3.7%. On Dec. 15, the company will distribute a quarterly dividend of 76.5 cents per common share, which is on par with the previous distribution. The company has been paying dividends for about 22 years.

The current dividend yield is on par with the median value over the past 10 years.

GuruFocus assigned the company a financial strength rating of 3 out of 10 and a profitability rating of 7 out of 10.

As of October, Wall Street recommends one strong buy rating, seven hold ratings, five underperform ratings and one sell rating. The average target price is $77.47 per share.

The share price went down 9.2% over the past year, determining a market capitalization of $27.68 billion and a 52-week price range of $62.03 to $95.10.

The 14-day RSI of 69 indicates that the stock is neither overbought nor oversold.

Hellenic Telecommunication Organization SA

The third company that beats the S&P 500 is Hellenic Telecommunication Organization SA (HLTOY), a Greek provider of telecommunication services to households and businesses primarily in Greece and Romania.

Based on Monday's closing price of $6.85 per share, Hellenic Telecommunication Organization SA grants a yield of 4.62% for both the trailing 12-month dividend and forward dividend. The company last paid an annual dividend of 31.7 cents per share on July 27. Hellenic Telecommunication Organization SA has paid dividends for more than 15 years.

As the below chart illustrates, the current dividend yield is moderately high compared to its past historical values.

GuruFocus assigned the company a financial strength rating of 4 out of 10 and a profitability rating of 6 out of 10.

As of October, Wall Street recommends a median rating of overweight with an average target price of $9.35 per share for the stock.

The price has declined 8.2% over the past year, determining a market capitalization of $6.38 billion and a 52-week range of $5 to $8.19.

The stock seems to be neither overbought nor oversold as its 14-day RSI is 37.

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 how to pick potential value stocks. Gold, silver and precious metals mining industries is also my cup of tea. 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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