In terms of a higher dividend yield, the following stocks are thrashing the S&P 500 index, which returned 1.91% at market close on Aug. 2.
Sell-side analysts also assigned an overweight recommendation rating on these three large caps stocks, suggesting they may outperform either their industries or the entire market within 52 weeks.
The first company is Deutsche Telekom AG (DTEGY, Financial), whose shares closed at $16.44 on Friday with a market capitalization of $78.21 billion. The forward dividend yield of the stock is 4.77% or 286 basis points higher than the S&P 500 index’s yield. The industry has a median of 3.65%. Yields are as of Friday.
The German integrated telecommunication services provider worldwide has paid dividends from July 2, 1997, to June 5, 2002, and from May 3, 2005, to April 9, 2019. Currently, the company pays 78.4 cents cash annual dividend per common share.
The stock also has a price-book ratio of 2.47 versus the industry median of 1.99 and a price-sales ratio of 0.93 compared to the industry median of 1.36.
The stock was flat over the 12 months through Aug. 2. Shares are trading below the 200-, 100- and 50-day simple moving average lines. The 52-week range is $15.51 to $17.95.
GuruFocus assigned the company a financial strength rating of 4 out of 10, and a profitability and growth rating of 7 out of 10.
Wall Street issued an average target price of $18.32 per share of Deutsche Telekom AG, reflecting 11.4% growth from Friday’s closing price.
The 14-day relative strength index of 41 suggests the stock is neither oversold nor overbought.
The second company is National Grid PLC (NGG, Financial), whose share price closed at $51.9 on Friday with a market capitalization of $35.46 billion.
The London-based transmitter and distributor of electricity and natural gas has a forward dividend yield of 5.95%, which is 404 basis points higher than the S&P 500 index’s dividend yield. The industry median is 3.37%. Yields are as of Friday.
National Grid PLC has continuously paid dividends from January 25, 2006, to January 9, 2019.
On Aug. 14, the company will pay $2.026 cash semi-annual dividend per common share to shareholders of record May 31, 2019. The ex-dividend date is scheduled for May 30.
The stock also has a price-book ratio of 1.50 versus the industry median of 1.49 and an enterprise value-Ebitda ratio of 12.89 versus the industry median of 9.96.
For the past 52-weeks through Aug. 2 the share price decreased 2% to below the 200-, 100- and 50-day simple moving average lines. The 52-week range is $46.36 to $59.01 per share.
GuruFocus assigned a rating of 4 out of 10 for the company's financial strength and a 7 out of 10 rating for its profitability and growth.
Wall Street issued an average target price of $57.89 per share of National Grid PLC, implying 11.5% growth to hit within 52 weeks.
The 14-day relative strength index of 45 suggests the stock is neither oversold nor overbought.
The third company is AGNC Investment Corp (AGNC, Financial), whose shares closed at $17.19 per share on Friday with a market capitalization of approximately $9.42 billion.
The forward dividend yield was 11.17% versus the industry median of 5.27% at close on Aug. 2. Further, AGNC Investment Corp’s forward dividend yield was 926 basis points higher than the S&P 500 index’s yield.
The Bethesda, Maryland-based real estate investment trust company has paid cash quarterly dividends from July 29, 2008, to Oct. 27, 2014, and cash monthly dividends from Nov. 7, 2014, to July 10, 2019.
On Aug. 9, AGNC Investment Corp. will pay 16 cents in cash monthly dividend per common share to shareholders of record July 31.
The stock also has a price-book ratio of 0.96 versus the industry median of 1.13 and a price-sales ratio of 55.99 versus the industry median of 7.45.
The stock has fallen 10% over the past year through Aug. 2. The chart below shows the share price is below the 200- and 100-day simple moving average lines and slightly above the 50-day simple moving average line. The 52-week range is $16.19 to $19.40.
GuruFocus assigned a rating of 6 out of 10 for the company's financial strength and a rating of 3 out of 10 for its profitability and growth.
Wall Street issued an average target price of $17.61 per share of AGNC Investment Corp, reflecting 2.4% increase from Friday’s closing price.
The 14-day relative strength index of 49 suggests the stock is neither overbought nor oversold.
Disclosure: I have no positions in any securities mentioned.
