As of Friday, the following long-term dividend payers offer a forward dividend yield that is much higher than the S&P 500 Index's yield of 1.89%. Thus, dividend investors may want to consider increasing holdings in these companies.
Sell-side analysts have also issued positive recommendation ratings ranging between overweight and buy for all three of them, increasing the likelihood of a successful investment. Overweight means that the stock is projected to outperform either the industry or the entire market.
The first company is Mining and Metallurgical Company NORILSK NICKEL PJ (NILSY, Financial). The shares closed at $27.09 on Friday for a market capitalization of $42.87 billion.
The stock has a forward dividend yield of 9.68% versus the industry median of 2.45%.
The GuruFocus chart shows that the stock’s current trailing annual dividend yield is close to its two-year high, indicating the stock is profitable.
Currently, the Russian metals and mining company is paying dividends every six months. The last payment was made on July 18. With the exception of 2009 and 2010, the company has paid dividends every year for 17 years.
The stock has increased 44% so far this year. It is trading above the 120-, 70- and 30-day simple moving average lines.
The 52-week range is $15.95 to $27.09.
The 14-day relative strength index of 77 suggests the stock is overbought.
The stock has a price-book ratio of 9.7 versus the industry median of 1.42 and an enterprise value-Ebitda ratio of 7.9 versus the industry median of 8.77.
GuruFocus assigned a moderate rating of 5 out of 10 for the company's financial strength and a very high rating of 9 out of 10 for its profitability.
Wall Street set an overweight recommendation rating for shares of Mining and Metallurgical Company and established an average price target of $27.43 per share.
The second company is Nintendo Co. Ltd. (NTDOY, Financial). The shares closed at $42.29 on Friday for a market capitalization of approximately $40.30 billion.
The forward dividend yield is 3.51% versus the industry median of 1.67%.
The GuruFocus chart illustrates that Nintendo 's current trailing annual dividend yield is moderately high compared to its historical value, suggesting that buying shares of the company is still convenient based on Friday’s closing price.
On July 15, the Japanese electronic gaming and multimedia company paid a quarterly dividend of 74.2 cents per common share. Except for 2013, Nintendo has distributed dividends every year for three decades.
The stock has increased 28% so far this year, but it is still trading below the 120-, 70- and 30-day simple moving average lines.
The 52-week range is $31.38 to $49.90.
The 14-day relative strength index of 23 indicates the stock is oversold.
The stock has a price-sales ratio of 3.66 versus the industry median of 2.31.
GuruFocus assigned the highest rating of 10 out of 10 for the financial strength of the company and a very high rating of 8 out of 10 for its profitability.
Wall Street issued a buy recommendation rating for shares of Nintendo and set an average target price of $55.38.
The third company is Exelon Corp. (EXC, Financial). The stock closed at $45.89 per share on Friday with a market capitalization of $44.59 billion.
The stock has a forward dividend yield of 3.16%, which is just a little below the industry median of 3.26%.
The chart shows that Exelon’s current trailing annual dividend yield is moderate compared to its historical value, indicating the stock is still profitable.
Currently, the Chicago-based diversified utility company pays a quarterly dividend of 36.3 cents per common share. The last dividend was distributed to its shareholders on Sept. 10. Exelon has paid dividends for 33 years.
The share price has climbed 2% so far this year. Nevertheless, it is still below the 120-, 70- and 30-day simple moving average lines.
The 52-week range is $43.02 to $51.18 per share.
The 14-day relative strength index of 44 suggests the stock is neither overbought nor oversold.
The stock has a price-sales ratio of 1.26 versus the industry median of 1.39.
GuruFocus assigned a low rating of 3 out of 10 for the company's financial strength, but a high rating of 7 out of 10 for its profitability.
Wall Street recommends an overweight rating and set an average price target of $52.85 per share.
Disclosure: I have no positions in any securities mentioned.
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