A Trio of High Yield Stocks for the Dividend Investor
Dividend investors may want to have a look at the following securities, as they strongly outperform the S&P 500 Index's 1.79% higher dividend yield as of the writing of this article on Dec. 19, 2019.
Fortum Oyj
The first company investors may want to consider is Fortum Oyj (FOJCF).
Shares of the Finnish generator and distributor of electricity and heat in Northeastern Europe, the Baltic regio and India closed at $24.5 per share on Thursday for a market capitalization of approximately $21.99 billion.
Based on the annual cash dividend of 1.10 Euros ($1.23) that the company currently pays per common share, the stock grants a 5.05% yield for both the forward dividend and the trailing 12-month dividend yield as of Thursday. The last annual dividend was paid on April 4, 2019.
The industry has a median of 3.56% for the trailing 12-month dividend yield and of 3.74% for the forward dividend yield.
The below chart from GuruFocus indicates that the current dividend yield of Fortum Oyj is moderately high compared to its past performances,suggesting that the stock is still a profitable investment.
The share price has increased 6% so far this year to above the 120-, 70- and 30-day simple moving average lines.
The 52-week range is $20.40 to $24.58.
The stock has a price-earnings ratio of 14.82 versus the industry median of 14.19 and a price-sales ratio of 3.58 versus the industry median of 1.77.
GuruFocus assigned a moderate financial strength rating of 5 out of 10 and a profitability rating of 7 out of 10.
Henderson Land
The second company under consideration is Henderson Land Development Company Limited (HLDVF).
Shares of the Hong Kong-based investment holding company with real estate properties development activities and investments in Hong Kong and China closed at $4.86 per share on Thursday for a market capitalization of $21.39 billion.
Based on a semi-annual dividend of 0.5 Hong Kong dollars ($0.06 USD) per common share that Henderson Land paid to its shareholders on Sept. 16, the stock grants a 4.42% yield for both the forward dividend and the trailing 12-month dividend as of Thursday.
The real estate industry has a median of 3.15% for the trailing 12-month dividend yield and of 3.27% for the forward dividend yield.
The stock's current dividend yield is the highest when compared to its historical values back 10 years, suggesting that this security is a profitable investment.
Despite a 9% rise in the share price so far this year the stock still seems affordable as it trades below the 120-, 70- and 30-day simple moving average lines.
The 52-week range is $4.65 to $6.22 per share.
The stock has a price-earnings ratio of 7.91 versus the industry median of 10.87 and a price-sales ratio of 8.52 compared to the industry median of 2.56.
GuruFocus assigned a rating of 5 out of 10 for the company's financial strength and a rating of 7 out of 10 for its profitability.
Wall Street issued an overweight recommendation rating for shares of Henderson Land Development Company Limited. This recommendation rating means that analysts foresee that this stock will outperform either its industry or the entire market within 12 months.
Iron Mountain
The third stock that draws the interest of dividend investors is Iron Mountain Incorporated (NYSE:IRM).
Shares of the Boston-based global leader in the information management services industry closed at $31.91 on Thursday for a market capitalization of $9.16 billion.
Based on the quarterly cash dividend of 61.9 cents that Iron Mountain will pay per common share on Jan. 2, 2020, the stock offers a forward dividend yield of 7.78% and a trailing 12-month dividend yield of 7.69% as of Thursday.
The industry has a median of 5.2% for both the trailing 12-month dividend yield and for the forward dividend yield.
The current dividend yield of Iron Mountain is near the top when compared to its historical values over the past decade, indicating that the stock is a profitable investment.
Year to date the share price decreased 2% to trade below the 30-, 70- and 120-day simple moving average lines.
The 52-week range is $29.28 to $37.32.
The stock has a price-earnings ratio of 23.28 versus the industry median of 17.83 and a price-sales ratio of 2.14 compared to the industry median of 7.89.
GuruFocus assigned a low rating of 3 out of 10 for the company's financial strength but a positive rating of 7 out of 10 for its profitability.
Wall Street issued an overweight recommendation rating for shares of Iron Mountain Incorporated with an average target price of $34, reflecting a 6.5% upside from Thursday's closing share price.
Disclosure: I have no positions in any securities mentioned.
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This article first appeared on GuruFocus.
