The following three companies may appeal to dividend investors, as their stocks are offering much higher dividend yields than the S&P 500 Index. The S&P 500 dividend yields 1.64% as of Thursday, Nov. 19.
Furthermore, Wall Street sell-side analysts have issued positive ratings for these stocks, indicating that their share prices are predicted to outperform over the several months ahead.
Chevron Corp
The first company is Chevron Corp CVX, a San Ramon, California-based integrated oil and gas company.
Based on Thursday's closing price of $85.73 per share, Chevron offers trailing 12-month and forward dividend yields of 6.02%. The company is currently paying a quarterly dividend of $1.29 per common share, with the next one to be made on Dec. 10. Chevron has paid dividends for more than three decades.
Acquiring shares of Chevron still appears a profitable activity as of Nov. 19, as the current dividend yield is quite high when compared to its past values.
GuruFocus assigned the company a score of 5 out of 10 for both its financial strength rating and its profitability rating.
The stock holds an overweight recommendation rating with an average target price of $97.13 per share on Wall Street.
The share price has lost 28% over the past year, which determined a market capitalization of $165.03 billion and a 52-week range of $51.60 to $122.94.
The stock is neither oversold nor overbought, as signaled by a 14-day relative strength index of 64.
China Mobile Ltd
The second company is China Mobile Ltd CHL, a Chinese telecom services company.
Based on Thursday's closing price of $30.23 per American Depository Receipt (ADR), China Mobile grants a trailing 12-month dividend yield of 6.96% and a forward dividend yield of 6.53%. In 2020, the company paid its shareholders 2 semiannual dividends, one of $1.112 per ADR on July 6 and one of 98.7 cents per ADR on Oct. 9. The company has been paying dividends for more than 15 years.
The current dividend yield is much higher compared to its historical values, as the below chart illustrates. Thus, investing in this stock still looks a profitable activity.
GuruFocus assigned a financial strength rating of 8 out of 10 and a profitability rating of 7 out of 10 to the company.
The stock has an overweight recommendation rating with an average target price of $43.25 per ADR on Wall Street.
The past 12 months of trading have created some negative pressure on the ADR price, which went down 22.53%, determining a market capitalization of $123.79 billion and a 52-week price range of $30.06 to $44.93.
The 14-day RSI of 36 indicates that the stock is not so far anymore from oversold levels.
Philip Morris International Inc
The third company that outperforms the benchmark for the U.S. market is Philip Morris International Inc PM, a New York-based tobacco giant.
Based on Thursday's closing price of $77.51 per share, Philip Morris International Inc grants a trailing 12-month dividend yield of 6.08% and a forward dividend yield of 6.2%. The company is currently distributing a quarterly dividend of $1.20 per common share, with the last payment sent out to the shareholders on Oct. 13. Philip Morris has paid dividends for nearly 13 years.
As the below chart exhibits, the dividend yield is very high when compared to its historical values, suggesting that investing in this stock is still profitable.
GuruFocus assigned the company a financial strength rating of 4 out of 10 and a profitability rating of 7 out of 10.
The stock has a buy recommendation rating with an average target price of $91.06 per share on Wall Street.
The share price has declined 7.11% over the past year, determining a market capitalization of $120.71 billion and a 52-week range of $56.01 to $90.17.
With a 14-day RSI of 60, the stock is neither overbought nor oversold.
Disclosure: I have no positions in any securities mentioned.
Read more here:
- A Trio of Low Price-Book Ratio Stock Picks to Consider
- 3 Stocks Growing Revenue Fast
- 3 High Earnings Return Stocks
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