In terms of dividend yield, the following securities are outperforming the S&P 500 Index, which rewarded its shareholders with a 1.87% yield at market close on Sept. 13.
Analysts on Wall Street also assigned positive recommendation ratings ranging between overweight and buy, reinforcing the idea these three large-cap stocks represent profitable businesses. Overweight means the stock is expected to outperform either the industry or the entire market.
The first company is Westpac Banking Corp. WBK, whose shares closed at $20.46 on Friday with a market capitalization of $39.02 billion. The forward dividend yield of 6.43% is 330 basis points higher than the industry median of 3.13% and 456 basis points higher than the S&P 500’s yield as of Friday.
The Australian global bank has paid dividends since July 28, 1989. The company distributed a quarterly dividend of 65.8 cents per common share to its shareholders on July 5.
The stock also has a price-book ratio of 1.6 versus the industry median of 1.03 and a price-sales ratio of 4.88 compared to the industry median of 2.9.
The stock gained 3% over the past 12 months through Sept. 13. Shares are trading above the 200-, 100- and 50-day simple moving average lines. The 52-week range is $16.41 to $20.86.
GuruFocus assigned a low rating of 2.8 out of 10 for the company's financial strength and a 3 out of 10 rating for its profitability and growth.
The 14-day relative strength index of 72 suggests the stock is not far from overbought levels.
Sell-side analysts on Wall Street issued an overweight recommendation rating and an average target price of $19.62.
The second company is Dominion Energy Inc. D, whose shares closed at $78.52 on Friday with a market capitalization of $63.08 billion.
The Richmond, Virginia-based energy production and transportation company has a forward dividend yield of 4.67%, which is 137 basis points higher than the industry median of 3.3% and 280 basis points higher than the S&P 500’s dividend yield.
Dominion Energy has paid quarterly dividends for 33 years. On Sept. 20, the company will pay 91.8 cents per common share to its shareholders.
The company also has a price-book ratio of 2.05 versus the industry median of 1.43 and a price-sales ratio of 3.89 versus the industry median of 1.36. The enterprise value-Ebitda ratio is 18.36 compared to the industry median of 10.14.
For the past 12 months through Sept. 13, the share price increased 9% to above the 200-, 100- and 50-day simple moving average lines. The 52-week range is $67.41 to $79.47 per share.
GuruFocus assigned a rating of 3.2 out of 10 for the company's financial strength and a 6 out of 10 rating for its profitability and growth.
Wall Street issued an overweight recommendation rating for shares of Dominion Energy with an average target price of $81.19.
The 14-day relative strength index of 58 suggests the stock is neither oversold nor overbought.
The third company is Takeda Pharmaceutical Co. Ltd. TKPHF, whose shares closed at $35.2 on Friday with a market capitalization of approximately $55.15 billion.
The stock has a forward dividend yield of 4.68%, which is 318 basis points higher than the industry median of 1.5% and 218 basis points higher than the S&P 500's yield.
The Japanese drug manufacturer has paid semi-annual dividends since June 27, 2013. The company paid 90 Japanese yen (83 cents) per common share on Sept. 13.
The stock also has a price-book ratio of 0.57 versus the industry median of 2.22 and a price-sales ratio of 1.71 versus the industry median of 2.67.
The stock has declined 18% over the past 12 months through Sept. 13. The share price is below the 200-day simple moving average line, but above the 100 and 50-day lines. The 52-week range is $31.22 to $43.51.
GuruFocus assigned a 3.8 out of 10 rating for the company's financial strength and a rating of 5 out of 10 for its profitability.
Wall Street issued a buy recommendation rating for shares of Takeda Pharmaceutical with an average target price of 5,200 yen.
The 14-day relative strength index of 59 suggests the stock is neither overbought nor oversold.
Disclosure: I have no positions in any securities mentioned.
Read more here:
- These 3 Large Caps Offer High Earnings Returns
- Analysts Recommend Holding These 2 Falling Knives
- These 3 Stocks Are Strong Performers”‹
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