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Alberto Abaterusso
Alberto Abaterusso
Articles (1701) 

3 Stocks With High Forward Dividend Yields

HSBC Holdings tops the list

July 15, 2019 | About:

As of Friday, the following three securities were offering a forward dividend yield that more than doubled the S&P 500 index's yield of 1.86%. Thus, dividend investors may want to consider them.

The first company is HSBC Holdings PLC (NYSE:HSBC), whose shares closed at $41.63 for a market capitalization of $168.47 billion on Friday. The stock has a forward dividend yield of 4.8% versus an industry median of 3.14%.

Although the London-based international bank has not been regular in the payment of quarterly dividends, its record is long.

On July 5, HSBC Holdings paid a 50-cent cash quarterly dividend per common share.

The share price decreased 12% over the past year through July 12. It is trading approximately in line with the 200-, 100- and 50-day simple moving average lines. The 52-week range is $38.23 to $48.87.

The 14-day relative strength index of 50 suggests the stock is neither oversold nor overbought.

The stock has a price-book ratio of 0.94 versus the industry median of 1.06 and a price-sales ratio of 11.86 compared to the industry median of 2.9.

GuruFocus assigned a rating of 4 out of 10 for the financial strength and of 2 out of 10 for the profitability and growth of the company.

Wall Street recommends to hold shares of HSBC Holdings PLC and has established an average price target of $42.81 per share, reflecting a 2.8% increase from the share price at close Friday.

The second company is Royal Bank of Canada (NYSE:RY), whose shares closed at $80.04 on Friday for a market capitalization of approximately $114.55 billion. The forward dividend yield is 3.8% versus an industry median of 3.14%.

The Toronto-based global bank has paid uninterrupted cash quarterly dividends since October 1995.

On Aug. 23, Royal Bank of Canada will pay to its common shareholders of record on July 25 a cash quarterly dividend of 1.02 Canadian dollars per share or approximately 78 Canadian cents per share based on Friday’s exchange rate.

The share price increased 3% over the past 52 weeks to trade at close Friday above the 200, 100 and 50-day simple moving average lines. The 52-week range is $65.76 to $81.56.

The 14-day relative strength index of 59 suggests the stock is neither oversold nor overbought.

The stock has a price-book ratio of 1.98 versus the industry median of 1.06 and a price-sales ratio of 3.38 versus the industry median of 2.9.

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

Wall Street issued an overweight recommendation rating for shares of Royal Bank of Canada.

The third company is the giant Italian global producer of oil and gas Eni SpA (NYSE:E), with a share price of $33.4 and a market capitalization of $60.62 billion at market close on Friday.

The stock has a forward dividend yield of 5.66% versus an industry median of 4.35%.

Eni has paid dividends for 24 years. The operator has distributed annual dividends from July 1996 to July 2004 and semi-annual dividends from June 2005 to June 2019.

Currently, the company pays a cash semi-annual dividend of approximately 91.7 cents per common share.

The share price has fallen 11% for the 52 weeks through July 12 to below the 200- and 100-day simple moving average lines. The 52-week range is $29.75 to $39.16 per share.

The stock has a price-book ratio of 1.02, which is in line with the average peer; a price-sales ratio of 0.69 compared to the industry median of 0.7; and an enterprise value-Ebitda ratio of 2.79 versus an industry median of 5.47.

GuruFocus assigned a rating of 5.8 out of 10 for the financial strength and a rating of 6 out of 10 for profitability and growth.

Wall Street recommends an overweight rating for shares of Eni SpA and forecasts an average price target of $40.25 per share, representing 20.5% upside from the share price at close Friday.

The 14-day relative strength index of 61 suggests the stock is neither oversold nor overbought.

Disclosure: I have no positions in any securities mentioned.

Read more here: 

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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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