3 High Forward Dividend Stocks
- By Alberto Abaterusso
The following stocks are granting their shareholders a compelling forward dividend yield, one that is at least 50% higher than the dividend yield of 2.91% on the S&P 500 index as of Friday.
The forward dividend yields of the below-listed stocks are according to their share prices at close Friday. A forward dividend yield -- as defined above -- also reduces the risk of bumping into an overpriced stock. So, dividend investors may want to consider the following companies.
Advanced Emissions Solutions Inc. (ADES) closed at $10.05 per share on Friday. Following a 13% downtrend for the 52 weeks through Nov. 2, the forward dividend yield went up to 9.95%, outperforming the industry by 804 basis points. The stock has a market capitalization of approximately $202.13 million, a price-book ratio of 2.49 versus an industry median of 1.72 and a price-earnings ratio of 5.82 compared to an industry median of 20.83.
The share price is below the 200-, 100- and 50-day simple moving average lines. The 52-week range is $7 to $12.37.
Advanced Emissions Solutions is active in the pollution and treatment controls industry. The Highlands Ranch, Colorado-headquartered company is a provider of technologies for emission reduction and of associated specialty chemicals in the U.S. The company was founded in 1996.
GuruFocus assigned it a financial strength rating of 8 out of 10 and a profitability & growth rating of 5 out of 10.
The stock has a mean recommendation rating of 2 out of 5 and an average target price of $18 per share.
Compass Minerals International Inc. (CMP) closed at $52.40 per share on Friday. For the 52 weeks through Nov. 2, the share price decreased 21%, and the forward dividend yield rose to 5.5%. The industry has a median forward dividend yield of 3.36%. The stock has a market capitalization of about $1.77 billion, a price-book ratio of 3.34 versus an industry median of 1.74 and an EV-to-Ebitda ratio of 11.12 compared to an industry median of 9.3.
The share price is below the 200-, 100- and 50-day simple moving average lines. The 52-week range is $45.25 to $76.65.
Compass Minerals International operates in the industrial metals and minerals industry.
The company is a producer and seller of salt, specialty plant nutrition and chemical products in the Americas.
GuruFocus assigned a financial strength rating of 4 out of 10 and a profitability & growth rating of 7 out of 10.
During the second quarter of 2018, Hotchkis & Wiley increased its holding by 46.92% to 39,338 shares. Joel Greenblatt (Trades, Portfolio) has initiated a position purchasing 7,995 shares.
Wallace Weitz (Trades, Portfolio) from Weitz Investment Management Inc. holds 143,000 shares of Compass Minerals International as of June 30.
The recommendation rating is 2.4 out of 5, and the average target price is $62.75 per share.
International Paper Company (IP) closed at $45.50 per share on Friday. The forward dividend yield is 4.39% versus an industry median of 2.08%. For the 52 weeks through Nov. 2, the stock has fallen 18% to a market capitalization of approximately $18.62 billion. The price-book ratio is 2.64 versus an industry median of 1.41, the price-sales ratio is 0.86 and on par with the industry median, and the price-earnings ratio is 6.37 versus an industry median of 18.27.
The share price is below the 200-, 100- and 50-day simple moving average lines. The 52-week range is $39.6 to $66.94 per share.
International Paper Company is active in the packaging and containers industry. The company operates through the industrial packaging, global cellulose fibers and printing papers segments in the Americas, Europe, North Africa, Russia and India.
GuruFocus assigned a financial strength rating of 4 out of 10 and a profitability & growth rating of 6 out of 10.
During the third quarter of 2018, T Rowe Price Equity Income Fund (Trades, Portfolio) has added to its position 3.87 million shares while Mario Gabelli (Trades, Portfolio) has reduced his holding by 20.78% to 22,880 shares.
The recommendation rating is 2.3 out of 5, and the average target price is $56.75 per share.
Disclosure: I have no positions in any securities mentioned in this article.
This article first appeared on GuruFocus.
