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Alberto Abaterusso
Alberto Abaterusso
Articles (1556) 

3 High Forward Dividend-Yield Stocks to Beat the Market

Crown Castle tops the list

July 08, 2019 | About:

In terms of a higher dividend yield, the following stocks are thrashing the S&P 500 index, which granted a dividend yield of 1.88% at market close on July 5.

Also, the following stocks received an overweight recommendation rating from analysts on Wall Street, which means that their share price is foreseen to outperform the entire U.S. stock market within 12 months. Therefore, below stocks may represent a way to shield the value of the investors’ portfolio from an expected overall downtrend in U.S. publicly traded equities.

Forecasters projected that the S&P 500 index, which is considered a benchmark for the overall U.S. stock market, will decrease 4.76% on average within 52 weeks.

The first company is Crown Castle International Corp. (NYSE:CCI), whose shares were at $134.23 for a market capitalization of $55.8 billion at close Friday. The stock has a compelling forward dividend yield of 3.35% as of July 5, but it is not high enough to reach the industry median of 5.27%.

The Houston, Texas-based operator and leaser of shared wireless infrastructure in the U.S. has paid dividends since March 31, 2014. Currently, Crown Castle pays a $1.125 cash quarterly dividend per common share.

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GuruFocus assigned the company a rating of 4.3 out of 10 for financial strength and an 8 out of 10 rating for profitability and growth.

The stock has a price-earnings ratio of 85.49 versus the industry median of 15.5, a price-book ratio of 4.78 versus the industry median of 1.14 and a price-sales ratio of 10.07 compared to the industry median of 7.45. The enterprise value-Ebitda ratio of Crown Castle stands at 24.55 versus 16.65 median for the entire industry.

The stock grew 24% so far this year, outperforming the S&P 500 ETF by about 4.2%.

The 52-week range is $103.21 to $137.85.

The 14-day relative strength index of 57 suggests the stock is neither oversold nor overbought.

The second company is KDDI Corp. (KDDIY), whose shares traded at $12.73 at close Friday with a market capitalization of $60.35 billion. As of July 5, the forward dividend yield is 4.02% versus the industry median of 3.59%, and it tops the yield of 136 out of 242 companies operating in the communication services industry.

The Japanese provider of telecommunication services in Japan and internationally has paid dividends from December 2010 to December 2016 and from July 2018 to July 2019.

KDDI Corp. paid a 25.6-cent semi-annual dividend per common share to its shareholders last Friday.

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GuruFocus assigned a rating of 6.7 out of 10 for the company's financial strength and 8 out of 10 for profitability and growth.

The stock has a price-earnings ratio of 10.63 versus the industry median of 18.34, a price-book ratio of 1.53 versus an industry median of 1.89 and a price-sales ratio of 1.27 compared to the industry median of 1.36.

Year to date, the stock increased 7%.

The 52-week range is $10.47 to $14.19.

The 14-day relative strength index of 55 suggests the stock is neither oversold nor overbought.

The third company is Telstra Corp. Ltd. (TLSYY), which closed at $13.51 per share on Friday with a market capitalization of $32.42 billion.

The stock has a forward dividend yield of 4.2% versus an industry median of 3.59% as of July 5, but it is ranked lower than 151 out of total 242 communication services companies.

The Australian telecommunication services provider has paid dividends since March 1998. The last semi-annual dividend paid to shareholders on April 5 was 28.4 cents per common share.

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GuruFocus assigned a rating of 4.7 out of 10 for financial strength and a 7 out of 10 rating for profitability and growth.

The stock has a price-earnings ratio of 14.88 versus the industry median of 18.34, a price-book ratio of 3.16 compared to the industry median of 1.89 and a price-sales ratio of 1.76 versus an industry median of 1.36.

The share price climbed 36% so far this year, outperforming the S&P 500 by 16.5%.

The 52-week range is $9.52 to $13.58 per share.

The 14-day relative strength index of 66 suggests the stock is neither overbought nor oversold.

Disclosure: I have no positions in any securities mentioned.

Read more here: 

First-Half 2019 Leaders and Laggards Among Gold Stocks 

These 2 Falling Knives Will Outperform 

2 Long-Term, High-Yield Payers Announce Dividends 

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About the author:

Alberto Abaterusso
If somebody asks what being a value investor means, Alberto Abaterusso would answer, “The value investor is not just the possessor of the security that represents the company, but he is the owner of that company. As an owner of the company the value investor is actively involved in the dynamics of that company and his first concern is how to have sales progressively growing. Also, the value investor is probably one of the most demanding persons in the world concerning sales.”

Abaterusso is a freelance writer based in The Netherlands. He primarily writes about gold, silver and precious metals mining stocks. His articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. Alberto holds an MBA from Università degli Studi di Bari (Italy), Aldo Moro.

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