In terms of a higher dividend yield, the following stocks are topping the S&P 500 Index, which is the benchmark for U.S.-listed stocks, significantly. The S&P 500 yields 1.84% as of Monday.
Thus, investors may want to consider the following companies.
ABB
The first company under consideration is ABB Ltd. (ABB, Financial), a Swiss manufacturer of electrification products and industrial solutions to utilities, industrial, transportation companies and other clients operating in the infrastructure industry.
Shares of ABB closed at $21.79 on Monday for a market capitalization of $50.61 billion.
Based on the annual dividend of 78.6 cents that ABB paid on June 13, the stock offers a 3.61% yield for both the forward dividend and the trailing 12-month dividend as of Monday.
Moreover, the company’s current trailing annual dividend yield indicates the stock is still profitable as it is quite high compared to its historical value.
The share price has increased 15% so far this year to trade above the 120-, 70- and 30-day simple moving average lines.
The 52-week range is $17.71 to $22.21.
The 14-day relative strength index of 60 suggests the stock is neither overbought nor oversold.
The stock has a price-earnings ratio of 32.34 versus the industry median of 17.55 and a price-sales ratio of 1.65 versus the industry median of 1.04.
GuruFocus assigned a moderate rating of 5 out of 10 for the company's financial strength and a very positive rating of 7 out of 10 for its profitability.
Wall Street issued a hold recommendation rating for shares of ABB and established an average price target of $21.66 per share.
Chunghwa Telecom
The second company is Chunghwa Telecom Co. Ltd. (CHT, Financial). Shares of the provider of telecommunication services in Taiwan closed at $37.13 on Monday for a market capitalization of $28.8 billion.
Based on the annual dividend of $1.44 per share that Chunghwa Telecom paid to its shareholders on Sept. 5, both the forward dividend and trailing 12-month dividend yield were 3.88% as of Monday.
The GuruFocus chart below illustrates that the current trailing annual dividend yield of Chunghwa Telecom is moderately high compared to its historical value, suggesting that acquiring shares of this stock is still a profitable investment.
The stock has gained 4% so far this year to above the 120-, 70- and 30-day simple moving average lines.
The 52-week range is $33.61 to $37.57.
The 14-day relative strength index of 52 suggests the stock is neither oversold nor overbought.
The stock has a price-earnings ratio of 24.78 versus the industry median of 18.83 and a price-sales ratio of 4.22 compared to the industry median of 1.41.
GuruFocus assigned a very high financial strength rating of 9 out of 10 and a very positive profitability rating of 7 out of 10.
ORIX
Shares of ORIX Corp. (IX, Financial), the Japanese provider of varied financial services to a broad range of clients in Japan and internationally, closed at $81.7 per share on Monday with a market capitalization of $20.94 billion.
Based on a semiannual dividend of $2.12 per common share that ORIX paid to its shareholders on June 10, the stock yields 2.6% in terms of trailing 12-month dividend and 5.16% in terms of forward dividend as of Monday.
According to the chart below on the dividend yield history of ORIX, the purchase of this stock’s shares still seems to be a profitable investment as the current dividend yield is quite high compared to its historical value.
The share price of ORIX has increased 14% so far this year to substantially above the 120-, 70- and 30-day simple moving average lines.
The 52-week range is $67 to $83.69 per share.
The 14-day relative strength index of 57 suggests the stock is neither overbought nor oversold
The stock has a price-earnings ratio of 7.02 versus the industry median of 11.59 and a price-sales ratio of 1.79 versus the industry median of 2.25.
GuruFocus assigned a low rating of 2 out of 10 for the company's financial strength, but a moderate rating of 4 out of 10 for its profitability.
Wall Street issued an overweight recommendation rating for shares of ORIX and has established an average target price of $103.07.
Disclosure: I have no positions in any securities mentioned.
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