Four large-caps dividend payers declared quarterly distributions on July 9.
These stocks outperform the S&P 500 Index in terms of dividend yield as of Tuesday.
Shares of International Paper Co. (IP, Financial) were down 0.62% to $42.95 in after-hours trading on Tuesday after the company announced the Sept. 16 payment of a quarterly dividend of 50 cents per common share to shareholders of record as of Aug. 15. The ex-dividend date is scheduled for Aug. 14. The payment is in line with the previous distribution.
Based on the closing price on Tuesday, the payment generates a forward dividend yield of 4.62%, topping the industry median of 2.46% and the S&P 500 Index’s yield of 1.88% as of July 9.
International Paper has paid dividends since March 1986. The trailing 12-month dividend per share increased, on average, 0.9% every year over the last 60 months, according to the GuruFocus chart below.
The stock has climbed 7% year to date, underperforming the S&P 500 Index by nearly 12%. The closing price on Tuesday was 14.4% above the 52-week low of $37.55 and 28% below the 52-week high of $54.95.
The market capitalization is $17.7 billion, the price-earnings ratio is 10.36 compared to the industry median of 14.84, the price-book ratio is 2.34 versus the industry median of 1.11 and the price-sales ratio is 0.76 versus the industry median of 0.63.
The Peter Lynch chart suggests the stock is cheap.
Wall Street issued an overweight recommendation rating for shares of International Paper with an average target price of $51.73, reflecting 19.7% upside from Tuesday’s closing price. The overweight rating means analysts anticipate the stock will outperform either the industry or the overall market within 52 weeks.
Shares of Cummins Inc. (CMI, Financial) declined 1.05% to close at $167.29 on Tuesday after the company announced a 15% rise in the cash quarterly dividend to $1.311 per common share. The dividend will be paid on Sept. 3 to shareholders of record as of Aug. 21. The ex-dividend date is scheduled for Aug. 20.
The distribution produces a forward dividend yield of 2.7% versus the industry median of 2.17% and the S&P 500's yield of 1.88%.
Cummins has paid dividends since March 1986. The chart below shows the trailing 12-month dividend per share increased 1.3% on average every year over the past 60 months.
The stock has gained 25.4% year to date, outperforming the S&P 500 Index by 6.5%. The closing price on Tuesday was 34.5% off the 52-week low of $124.40 and 3.9% below the 52-week high of $173.77.
The stock has a market capitalization of $26.35 billion, a price-earnings ratio of 10.85 versus the industry median of 16.94, a price-book ratio of 3.37 compared to the industry median of 1.51 and a price-sales ratio of 1.11 compared to the industry median of 1.04.
According to the Peter Lynch chart, the stock is trading cheaply.
Wall Street issued a hold recommendation rating for shares of Cummins with an average target price of $169.05, mirroring 1.3% upside from the closing price on Tuesday.
Shares of Enterprise Products Partners LP (EPD, Financial) were up 0.85% to $29.62 on Tuesday following the announcement of the quarterly dividend of 44 cents per share. The dividend will be paid on Aug. 13 to shareholders of record as of July 31. The ex-dividend date is scheduled for July 30. The payment represents a 0.6% increase from the previous distribution.
Based on the closing price on Tuesday, the payment generates a forward dividend yield of 5.96%, which is still below the industry median of 7.22% but above the S&P 500 Index’s yield of 1.88%.
Enterprise Products Partners has paid dividends since November 1998. On average, the trailing 12-month dividend per share increased 0.7% every year over the last five years.
The stock has gained 14.4% year to date, topping the S&P 500 Index by nearly 2%. The closing price on Tuesday was 27% above the 52-week low of $23.33 and just 1.5% below the 52-week high of $30.05.
The market capitalization is $64.83 billion, the price-earnings ratio is 14.29 compared to the industry median of 13.95, the price-book ratio is 2.71 versus the industry median of 1.64 and the price-sales ratio is 1.82 versus the industry median of 1.81. The enterprise value-Ebitda ratio is 12.09 compared to the industry median of 11.97.
The Peter Lynch chart suggests the stock is not expensive.
Wall Street issued a buy recommendation rating for shares of Enterprise Products Partners with an average target price of $34.08, reflecting nearly 14.5% upside from the closing price on Tuesday.
Shares of PNC Financial Services Group Inc. (PNC, Financial) closed almost flat at $140.76 on Tuesday after the company announced a 21.1% hike in the cash quarterly dividend to $1.15 per common share. The dividend will be paid on Aug. 5 to shareholders of record as of July 19. The ex-dividend date is scheduled for July 18.
Based on the closing price on Tuesday, the quarterly dividend generates a forward dividend yield of 3.27% versus the industry median of 3.14% and the S&P 500's yield of 1.88%.
PNC Financial has paid dividends since January 1986. The chart below shows the trailing 12-month dividend per share increased 6.7% on average every year over the past five years.
The stock has climbed 20.6% year to date, outperforming the S&P 500 Index by 1.2%. The closing price on Tuesday was 29.8% off the 52-week low of $108.45 and 4.6% below the 52-week high of $147.23.
The stock has a market capitalization of $63.56 billion, a price-earnings ratio of 12.92 versus the industry median of 11.82, a price-book ratio of 1.32 versus the industry median of 1.06 and a price-sales ratio of 3.78 compared to the industry median of 2.9.
According to the Peter Lynch chart, the stock is trading cheaply.
Wall Street issued an overweight recommendation rating for shares of PNC Financial with an average target price of $143.78, representing 1.4% upside from the closing price on Tuesday.
Disclosure: I have no positions in any securities mentioned.
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