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2 Large-Cap Stocks Announce Dividends

The following large-cap/loyal payers announced dividends on Monday. They are also doing better than most of their peers and the S&P 500 index in terms of a higher forward dividend yield.

The Southern Company

Shares of The Southern Company (NYSE:SO) were flat at $61.59 in after-hours trading on Monday despite the announcement of a quarterly dividend of 62 cents per common share, which is in line with the previous payment.

Eli Lilly and Company will pay the quarterly dividend to its shareholders on Dec. 10. In order to benefit, investors must be on the company's record not later than Nov. 15. The ex-dividend date is scheduled for Nov. 14.

Based on Monday's closing prices, the payment produces a forward dividend yield of 2.37% compared to the industry median of 1.54% and the S&P 500's yield of 1.90%.

The Indianapolis, Indiana-based global drug major has paid quarterly dividends since March 8, 1986.

The trailing 12-month dividend per share increased 2.6% on average every year over the last 5 years through Dec. 28, 2018.

The US international drug manufacturer is financially sustaining the payment of the quarterly dividends thanks to $2.4 billion cash available on hand as of June 30 and $4.93 billion in cash flows which were generated from the last 12 months through second quarter operations.

The stock price has fallen 6.73% year to date. The 52-week range is $104.17 to $132.13.

The stock has a market capitalization of $104.18 billion, a price-earnings ratio of 13.61, a price-book ratio of 41.05 and a price-sales ratio of 4.6.

Based on the Peter Lynch chart, the stock appears to be trading above its fair value.

Consensus amid Wall Street sell-side analysts is for an outperforming share price within 52 weeks as the stock has got an overweight recommendation rating. The average target price is $127.73.

Disclosure: I have no positions in any securities mentioned.

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This article first appeared on GuruFocus.