3 Companies With High Forward Dividend Yields
In terms of dividend yield, the following stocks are outperforming the S&P 500 Index, which rewarded its shareholders with a 1.92% yield at market close on Aug. 30.
Sell-side analysts also assigned an overweight recommendation rating to these three large-cap stocks, suggesting they may outperform either their industries or the overall market within 12 months.
The first company is Sands China Ltd. (SCHYY), whose shares closed at $45.36 on Friday with a market capitalization of $36.69 billion. The forward dividend yield is 5.64%, 372 basis points higher than the S&P 500's yield. The industry has a median of 2.46%. Yields are as of Friday.
The Chinese operator of integrated resorts and casinos in Macao has paid semiannual dividends since March 14, 2012. Currently, the company pays approximately $1.28 per common share.
The stock also has a price-book ratio of 10.71 versus the industry median of 1.44 and a price-sales ratio of 4.30 compared to the industry median of 1.56.
The stock declined 5% over the past 12 months through Aug. 30. Shares are trading below the 200-, 100- and 50-day simple moving average lines. The 52-week range is $37.63 to $56.1.
GuruFocus assigned the company a rating of 5.7 out of 10 for financial strength and a 6 out of 10 for its profitability and growth.
The 14-day relative strength index of 46 suggests the stock is neither oversold nor overbought.
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The second company is Welltower Inc. (NYSE:WELL), whose shares closed at $89.56 on Friday with a market capitalization of $36.29 billion.
The Toledo, Ohio-based real estate investment trust has a forward dividend yield of 3.89%, which is 197 basis points higher than the S&P 500's dividend yield. The industry median is 5.21%.
Welltower has continuously paid quarterly dividends since Jan. 25, 1985. Currently, the company pays 87 cents per common share.
The stock also has a price-book ratio of 2.29 versus the industry median of 1.15 and a price-sales ratio of 6.98 versus the industry median of 7.69.
For the past 52 weeks through Aug. 30, the share price gained 35% to above the 200-, 100- and 50-day simple moving average lines. The 52-week range is $60.93 to $90.25 per share.
GuruFocus assigned a moderate rating of 4.1 out of 10 for the company's financial strength and a positive 7 out of 10 rating for its profitability and growth.
Wall Street issued an average target price of $86.38 for shares of Welltower.
The 14-day relative strength index of 64 suggests the stock is neither oversold nor overbought.
The third company is Telus Corp. (NYSE:TU), whose shares closed at $36.26 per share on Friday with a market capitalization of approximately $21.79 billion.
The stock has a forward dividend yield of 4.7%, 278 basis points higher than the S&P 500's yield and 102 basis points higher than the industry median of 3.68%.
The Canadian telecommunication company has paid quarterly dividends since April 1, 1999.
On Oct. 1, Telus will pay 56.3 cents per common share to shareholders of record as of Sept. 10. The ex-dividend date is scheduled for Sept. 9.
The stock also has a price-book ratio of 2.76 versus the industry median of 1.83 and a price-sales ratio of 2.01 versus the industry median of 1.35.
The stock is down 1% for the past year through Aug. 30. The chart below shows the share price is below the 100- and 50-day simple moving average lines and slightly above the 200-day line. The 52-week range is $32.46 to $38.32.
GuruFocus assigned a moderate rating of 4.1 out of 10 for the company's financial strength and a 7 out of 10 for its profitability and growth.
Wall Street issued an average target price of $52.41 per share of Telus.
The 14-day relative strength index of 54 suggests the stock is neither overbought nor oversold.
Disclosure: I have no positions in any securities mentioned.
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This article first appeared on GuruFocus.
