These High Forward Dividend Yield Companies Will Outperform
As of Friday, the following companies offer a forward dividend yield that more than doubles the S&P 500 Index's yield of 1.88%. Thus, dividend investors may want to consider buying shares of these stocks.
The first company is BP PLC (NYSE:BP). The shares closed at $37.45 on Friday for a market capitalization of $125.74 billion. The stock has a forward dividend yield of 6.57% versus the industry median of 4.52%.
The GuruFocus chart shows BP's current trailing annual dividend yield is high compared to its historical value, indicating it is profitable.
On Sept. 20, the London-based oil and gas company will pay a quarterly dividend of 61.5 cents per common share.
The stock has declined 1.22% so far this year. It is trading below the 100- and 50-day simple moving average lines.
The 52-week range is $35.73 to $47.16.
The 14-day relative strength index of 50 suggests the stock is neither overbought nor oversold.
The stock has a price-book ratio of 1.31 versus the industry median of 0.97 and an enterprise value-Ebitda ratio of 4.14 compared to the industry median of 5.77.
GuruFocus assigned a rating of 5.1 out of 10 for the company's financial strength and a rating of 5 out of 10 for its profitability and growth.
Wall Street set an overweight recommendation rating for shares of BP and established an average price target of $47.40 per share.
The second company is Weyerhaeuser Co. (NYSE:WY). The shares closed at $26.71 on Friday for a market capitalization of approximately $19.90 billion. The forward dividend yield is 5.09% versus an industry median of 5.21%.
The GuruFocus chart illustrates that Weyerhaeuser's current trailing annual dividend yield is high compared to its historical value, suggesting profitability.
On Sept. 20, the Seattle-based real estate investment trust will pay a quarterly dividend of 34 cents per share.
The stock has gained 22% so far this year to close above the 100- and 50-day simple moving average lines on Friday.
The 52-week range is $20.52 to $34.72.
The 14-day relative strength index of 64 suggests the stock is neither oversold nor overbought.
The stock has a price-book ratio of 2.29 versus the industry median of 1.15 and a price-sales ratio of 2.91 versus the industry median of 7.64.
GuruFocus assigned a financial strength rating of 4.6 out of 10 and a profitability and growth rating of 6 out of 10.
Wall Street issued an overweight recommendation rating for shares of Weyerhaeuser and set an average target price of $30.59.
The third company is Inter Pipeline Ltd. (IPPLF). The stock closed at $19.11 per share on Friday with a market capitalization of $7.9 billion.
The stock has a forward dividend yield of 6.73% versus the industry median of 6.93%.
The chart shows the current trailing annual dividend yield of Inter Pipeline is high versus its historical value, indicating profitability.
Currently, the Canadian midstream oil and gas company pays a quarterly dividend of 14.3 cents per common share. The next dividend will be distributed on Sept. 16.
The share price has increased 35% so far this year to close on Friday above the 100- and 50-day simple moving average lines.
The 52-week range is $13.66 to $19.11 per share.
The 14-day relative strength index of 67 suggests the stock is neither overbought nor oversold.
The stock has a price-book ratio of 2.53 versus the industry median of 1.58 and an enterprise value-Ebitda ratio of 14.19 versus the industry median of 11.54.
GuruFocus assigned a low rating of 3.8 out of 10 for the company's financial strength, but a very high rating of 8 out of 10 for its profitability and growth.
Wall Street gave the stock an overweight recommendation rating and set an average price target of $25.47 per share.
Disclosure: I have no positions in any securities mentioned.
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This article first appeared on GuruFocus.
