Top Dividend Paying Stocks
Dividend-paying companies such as Macy’s and Western Union can diversify your portfolio cash flow by paying constant and large dividends. These stocks are a safe bet to increase your portfolio value as they provide both steady income and cushion against market risks. Dividends play a key role in compounding returns over time and can form a large part of our portfolio return. Below are more huge dividend-paying stocks that continues to add value to my portfolio holdings.
Macy’s, Inc. (NYSE:M)
Macy’s, Inc., an omni-channel retail organization, operates stores, Websites, and mobile applications. Established in 1830, and now run by Jeffrey Gennette, the company now has 130,000 employees and with the market cap of USD $8.65B, it falls under the mid-cap category.
M has a enticing dividend yield of 5.34% and distributes 29.81% of its earnings to shareholders as dividends , with the expected payout in three years hitting 48.44%. While the yield has dropped at times in the last 10 years, dividends per share during this time have increased overall from US$0.52 to US$1.51. Macy’s’s earnings per share growth of 151.12% outpaced the us multiline retail industry’s 21.61% average growth rate over the last year. More on Macy’s here.
The Western Union Company (NYSE:WU)
The Western Union Company provides money movement and payment services worldwide. Established in 2006, and now run by Hikmet Ersek, the company size now stands at 11,500 people and with the market cap of USD $8.70B, it falls under the mid-cap category.
WU has a great dividend yield of 4.03% and their payout ratio stands at -58.79% , with the expected payout in three years being 39.87%. WU’s dividends have increased in the last 10 years, with DPS increasing from US$0.04 to US$0.76. It should comfort existing and potential future shareholders to know that WU hasn’t missed a payment during this time. Analysts are expecting strong shareholder returns over the next three years, estimating WU’s ROE in three years to be 39.48%. More on Western Union here.
Pinnacle West Capital Corporation (NYSE:PNW)
Pinnacle West Capital Corporation, through its subsidiary, Arizona Public Service Company, provides retail and wholesale electric services primarily in the state of Arizona. Started in 1920, and currently headed by CEO Donald Brandt, the company now has 6,292 employees and with the company’s market capitalisation at USD $8.75B, we can put it in the mid-cap stocks category.
PNW has a decent dividend yield of 3.56% and is paying out 60.90% of profits as dividends , with the expected payout in three years being 63.76%. In the last 10 years, shareholders would have been happy to see the company increase its dividend from US$2.10 to US$2.78. The company has been a reliable payer too, not missing a payment during this time. Interested in Pinnacle West Capital? Find out more here.
For more solid dividend paying companies to add to your portfolio, explore this interactive list of top dividend payers.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
