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3 Stocks Beating the S&P 500's Dividend Yield

- By Alberto Abaterusso

The following stocks were beating the S&P 500 index in terms of a higher dividend yield at close on Monday. The benchmark index stood at 1.97%.

AvalonBay Communities Inc. (AVB) is granting a forward dividend yield of 3.05% based on Monday's closing share price of $192.34 and a quarterly dividend of $1.52 per ordinary share.

The Arlington, Virginia-based real estate company will pay the dividend, which represents a 3.4% increase from the previous one, on April 15 to shareholders of record as of March 29. The ex-dividend date is scheduled for March 28.


After the closing bell on Monday, the company released results for the final quarter of 2018. AvalonBay met consensus estimates with non-GAAP earnings of $2.31 per share on $578.5 million in revenue.

The company also recorded a 2.7% year-over-year growth in funds from operations to $2.31 per share. For 2019, AvalonBay has guided funds from operations of $9.05 to $9.55.

For the 52 weeks through Feb. 4, the share price jumped 20%. The stock has a market capitalization of about $26.6 billion, a price-book ratio of 2.56 versus an industry median of 1.1, a price-earnings ratio of 32.16 versus an industry median of 15.5 and a price-sales ratio of 11.76 compared to an industry median of 7.55.

The stock has a recommendation rating of 2.3 out of 5 and an average target price of $195.71 per share.

GuruFocus rated the company's financial strength 5 out of 10 and its profitability and growth 8 out of 10.

During the third quarter, Chris Davis increased his holding by 22.78% to 154,102 shares and Ron Baron increased his position by 12.39% to 490 shares. Joel Greenblatt reduced his holding by 21.46% to 2,848 shares.

Banco Santander Chile (BSAC) is offering a forward dividend yield of 4.56% based on the closing share price of $32.57 on Monday and an annual dividend of $1.49 per share.

The Santiago, Chile-based commercial bank released earnings for the fourth quarter of 2018 before the opening bell on Monday. The company missed consensus by 4 cents with earnings of 48 cents per share, which reflects a 16% increase on a year-over-year basis. The results were driven by strong growth in the loan portfolio and client revenues. A general improvement in the quality of the bank's assets as well as in operating efficiency also underpinned income generation.

The share price has been flat for the past year through Monday for a market capitalization of $15.3 billion. The stock is above the 200, 100 and 50-day simple moving average lines. The stock has a price-book ratio of 3.28 versus an industry median of 1.24, a price-sales ratio of 5.53 versus an industry median of 3.41 and a price-earnings ratio of 17.76 compared to an industry median of 14.76.

The stock has a recommendation rating of 3.1 out of 5 and an average target price of $33.09 per share.

GuruFocus assigned a financial strength rating of 4 out of 10 and a profitability and growth rating of 4 out of 10.

During the third quarter of 2018, John Rogers boosted his holding by 3.96% to 897,525 shares.

Seagate Technology PLC (STX) is rewarding shareholders with a forward dividend yield of 5.53%. The return is based on Monday's closing price of $45.56 and a quarterly dividend of 63 cents per share. The next payment will occur on April 3. In order to benefit, shareholders must be on the company's record no later than March 20. The ex-dividend date is scheduled for March 19.

The Irish data storage company beat consensus estimates for second-quarter 2019 earnings after the closing bell on Monday. Seagate Technology posted non-GAAP earnings of $1.41 per diluted share versus consensus of $1.28.

Revenue came in at $2.7 billion, which was in line with analysts' expectations.

Due to a more challenging demand environment, non-GAAP earnings dropped 4.7% and total revenues declined 6.6% year over year.

For the 52 weeks through Feb. 4, the share price fell 6%. The stock has a market capitalization of roughly $13.06 billion, a price-book ratio of 7.07 versus an industry median of 1.67, a price-sales ratio of 1.16 compared to an industry median of 1.11 and a price-earnings ratio of 9.18 versus an industry median of 19.39.

GuruFocus assigned a financial strength rating of 5 out of 10 and a profitability and growth rating of 6 out of 10.

The recommendation rating is 2.9 out of 5 and the average target price is $46 per share.

During the third quarter of 2018, Joel Greenblatt (Trades, Portfolio) increased his position by 2% to 743,632 shares.

Disclosure: I have no positions in any securities mentioned in this article.

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This article first appeared on GuruFocus.