Investors may want to consider the following non-cyclical stocks as their earnings yields (as calculated by Joel Greenblatt (Trades, Portfolio)'s method) are outperforming the 20-year high-quality market corporate bond spot rate of 4.35% as of the time of writing.
Greenblatt calculates the earnings yield as the company's earnings before interest and tax (Ebit) divided by its enterprise value. This ratio represents a more reliable reference for the evaluation of non-cyclical stocks, whose earnings have little to no correlation with the business cycle (as the metric only looks at 12 months of business activities).
Exelon Corp
The first stock investors may want to consider is Exelon Corp. (EXC, Financial), a Chicago-based diversified utilities operator.
The stock grants an earnings yield of 5.63% as of the March 2022 quarter. This stands at the low end of the past 10-year historical earnings yield range of 5.27% to 15.72%. The earnings yield ranks worse than 54% of 523 companies that are operating in the utilities - regulated industry.
The stock traded at around $48.83 on Tuesday, giving it a market cap of $48.06 billion and a 52-week range of $31.20 to $50.71.
Its price-earnings ratio is 18.47 and its price-book ratio is 2.05.
The stock granted a forward dividend yield of 2.75% as of this writing.
Ambev S.A.
The second stock investors may want to consider is Ambev S.A. (ABEV, Financial), a Brazilian seller of beer, various non-alcoholic beverages, malt and food products in the Americas.
The company grants an earnings yield of 6.58% as of the March 2022 quarter. This stands slightly above the midpoint of the 10-year historical range of 3.67% to 9.43% and ranks higher than 70% of the 217 companies that are operating in the beverages and alcoholic drinks industry.
The stock traded around $2.89 on Tuesday, giving it a market cap of $44.70 billion and a 52-week range of $2.50 to $3.95.
Its price-earnings ratio is 16.03 and its price-book ratio is 2.78.
The stock granted a forward dividend yield of 3.8% as of this writing.
Philip Morris International Inc.
The third stock investors may want to consider is Philip Morris International Inc. (PM, Financial), a New York-based tobacco giant.
The company grants an earnings yield of 7.46% as of the March 2022 quarter, standing slightly above the midpoint of the 10-year historical range of 5.02% to 10.59% and ranking worse than 57.14% of 49 companies that are operating in the tobacco industry.
The stock traded at around $106.62 on Tuesday, giving it a market cap of $168.22 billion and a 52-week range of $85.64 to $112.48.
Its price-earnings ratio is 18.77 and its price-sales ratio is 5.36.
The stock granted a forward dividend yield of 4.61% as of this writing.
GlaxoSmithKline PLC
The fourth stock investors may want to consider is GlaxoSmithKline PLC (GSK, Financial), a British pharmaceutical giant.
The company grants an earnings yield of 6.73% as of the March 2022 quarter, which is below the midpoint of the 10-year historical range of 1.39% to 15.85% but ranks higher than 71.82% of 1,1125 companies that are operating in the drug manufacturers industry.
The stock traded at $45 on Tuesday, giving it a market cap of $114.08 billion and a 52-week range of $37.80 to $46.97.
Its price-earnings ratio is 17.60 and its price-book ratio is 5.62.
The stock granted a forward dividend yield of 4.42% as of this writing.
