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Alberto Abaterusso
Alberto Abaterusso
Articles (1994) 

3 Long-Term Dividend Payers Grant a High Forward Yield

AT&T Inc. tops the list

October 07, 2019 | About:

As of Friday, the forward dividend yield of the following companies thrashes the S&P 500 Index's yield of 1.94%. Thus, dividend investors may want to consider these stocks.

The first company is AT&T Inc. (NYSE:T). The shares closed at $37.51 on Friday for a market capitalization of $274.09 billion. The stock has a forward dividend yield of 5.44% versus the industry median of 3.62%.

The GuruFocus chart illustrates that AT&T Inc. 's current trailing annual dividend yield is moderately high compared to its historical value, suggesting the stock is still profitable.

On Nov. 1, the Dallas-based telecommunication services company will pay a quarterly dividend of 51 cents per common share.

The stock has risen 31.43% so far this year to above the 100- and 50-day simple moving average lines.

The 52-week range is $26.8 to $38.75.

The 14-day relative strength index of 58 suggests the stock is neither overbought nor oversold.

The stock has a price-earnings ratio of 15.76 versus the industry median of 18.66 and a price-sales ratio of 1.49 compared to the industry median of 1.39.

GuruFocus assigned a rating of 3 out of 10 for the company's financial strength and a rating of 7 out of 10 for its profitability and growth.

Wall Street set an overweight recommendation rating for shares of AT&T Inc. and established an average price target of $36.09 per share.

The second company is AbbVie Inc. (NYSE:ABBV). The shares closed at $74.66 on Friday for a market capitalization of approximately $110.38 billion. The forward dividend yield is 5.73% versus an industry median of 1.58%.

The GuruFocus chart shows AbbVie's current trailing annual dividend yield is high compared to its historical value. GuruFocus suggests to buy stocks at higher yield compared to their historical values to have more chances of unearthing profitable investments.

On Nov. 15, the North Chicago-based drug major will pay a quarterly dividend of $1.07 per ordinary share.

The stock has fallen 19% so far this year, underperforming the S&P 500 index by 36.8%. However, its share price still trades above the 100- and 50-day simple moving average lines.

The 52-week range is $62.66 to $95.81.

The 14-day relative strength index of 63 suggests the stock is neither oversold nor overbought.

The stock has a price-earnings ratio of 27.46 versus the industry median of 19.35 and a price-sales ratio of 3.43 versus the industry median of 2.54.

GuruFocus assigned a financial strength rating of 5 out of 10 and a profitability and growth rating of 9 out of 10.

Wall Street issued an overweight recommendation rating for shares of AbbVie Inc. and set an average target price of $88.67.

The third company is Engie SA (ENGQF). The stock closed at $16.39 per share on Friday with a market capitalization of $39.11 billion.

The stock has a forward dividend yield of 5.17% versus the industry median of 3.23%.

The chart illustrates the current trailing annual dividend yield of Engie SA is near its 5 years low. However, it is ranked medium according to GuruFocus' chart suggesting the stock is still profitable.

On May 23, the French electric and gas utility company paid a dividend of 0.75 Euros per common share. The distribution was up 114.3% from the previous one due to the inclusion of a special dividend. The company is paying dividends every six months.

The share price has increased 16% so far this year to above the 100- and 50-day simple moving average lines. The stock underperformed the S&P 500 index by about 1.6% over the same period.

The 52-week range is $12.8 to $16.39 per share.

The 14-day relative strength index of 65 suggests the stock is neither overbought nor oversold.

The stock has a price-earnings ratio of 18.44 versus the industry median of 16.3 and a price-sales ratio of 0.62 versus the industry median of 1.36.

GuruFocus assigned a rating of 4 out of 10 for the company's financial strength and of 5 out of 10 for its profitability and growth.

Wall Street issued an overweight recommendation rating for shares of Engie SA and has established an average target price of $15.99.

Disclosure: I have no positions in any securities mentioned.

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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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