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Alberto Abaterusso
Alberto Abaterusso
Articles (2608) 

A Trio of High Dividend Yield Stock Picks

This trio is outperforming the S&P 500's dividend yield

December 17, 2020 | About:

The three companies listed below appeal to the dividend investor, as their stocks are more than doubling the S&P 500 Index in terms of a higher dividend yield. The S&P 500 dividend yields 1.59% as of Wednesday, Dec. 16.

Fortis Inc

The first company dividend investors could be interested in is Fortis Inc (NYSE:FTS), a Canadian generator and supplier of regulated electricity and gas in North America and the Caribbean.

Based on Wednesday's closing price of $41.67 per share, Fortis grants a trailing 12-month dividend yield of 3.5% and a forward dividend yield of 3.71%. The company is currently paying a quarterly dividend of 0.505 Canadian dollars ($0.40) per common share. Fortis has paid dividends for more than 30 years.

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

GuruFocus assigned the company a score of 3 out of 10 for its financial strength and of 7 out of 10 for its profitability.

As of December, Wall Street recommends one strong buy rating with a target price of $44.98 per share.

The share price has risen by 1.56% over the past year, determining a market capitalization of $19.43 billion and a 52-week range of $28.59 to $44.72.

The stock has a 14-day relative strength index of 60, which indicates that its share price is neither oversold nor overbought.

Icahn Enterprises LP

The second company dividend investors may be interested in is Icahn Enterprises LP (NASDAQ:IEP). Based in Sunny Isles Beach, Florida, Icahn Enterprises is a conglomerate company with business interests in several economic sectors, including financial services, energy, consumer cyclical, basic materials and real estate in the U.S. and internationally.

Based on Wednesday's closing price of $51.05 per share, Icahn Enterprises grants a 15.66% trailing 12-month dividend and forward dividend yield. Currently, the company is distributing a quarterly dividend of $2 per common share. The company has covered almost 20 years in dividends paid so far, though not continuously.

As the below chart exhibits, the current dividend yield is quite high compared to its past values.

GuruFocus assigned a score of 4 out of 10 to both the company's financial strength rating and its profitability rating.

As of December, Wall Street recommends one strong buy rating and one underperform rating for the stock.

The share price went down 16.8% over the past year, determining a market capitalization of $11.85 billion and a 52-week price range of $34 to $69.10.

The 14-day RSI of 52 tells that the stock is neither overbought nor oversold.

KT Corp

The third company dividend investors could be interested in is KT Corp (NYSE:KT), a South Korean global operator of telecommunications services.

Based on Wednesday's closing price of $11.26 per share, KT Corp grants a yield of 3.93% for both the trailing 12-month dividend and forward dividend. The company last paid an annual dividend of 44.4 cents per share on April 29. KT Corp has paid dividends for about 20 years, though not continuously.

The current dividend yield is quite high compared to its past historical values, as the below chart illustrates.

GuruFocus assigned the company a financial strength rating of 5 out of 10 and a profitability rating of 4 out of 10.

As of December, Wall Street recommends two hold ratings for this stock.

The price has decreased slightly by 1.21% over the past year, determining a market capitalization of $5.53 billion and a 52-week range of $6.66 to $11.85.

The stock appears neither overbought nor oversold since its 14-day RSI is 66.

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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