As I ponder my coming week's purchase, I am having difficulties in finding 3%+ yielding stocks. Many DGI stocks that I would love to purchase at fair value are approaching values that I consider too expensive. Below is a table I tabulated showing which stocks have yields above 3% that I am considering.
Note: Please double check the values' correctness if you are going to use the data. They were fetched off Finviz's website using a script I wrote.
Staples |
Forward PE |
PE |
Yield |
PEG |
Beta |
Debt/Eq |
Payout |
PM |
17.12 |
16.61 |
4.84% |
2.85 |
0.91 |
No Data |
61.90% |
RAI |
18.15 |
22.91 |
3.97% |
2.71 |
0.50 |
1.10 |
86.40% |
MO |
18.99 |
24.33 |
3.92% |
3.15 |
0.50 |
3.26 |
89.90% |
DEO |
17.92 |
20.48 |
3.75% |
3.10 |
0.86 |
1.35 |
27.60% |
UL |
19.47 |
20.18 |
3.42% |
4.92 |
0.79 |
0.97 |
30.40% |
KRFT |
19.54 |
16.65 |
3.35% |
2.57 |
No Data |
1.79 |
66.60% |
GIS |
17.63 |
22.35 |
3.07% |
3.63 |
0.16 |
1.86 |
65.70% |
SYY |
19.64 |
25.65 |
3.00% |
3.64 |
0.75 |
0.57 |
73.20% |
Of the stocks above, I consider PM, MO, KRFT, GIS, and SYY as solid dividend stocks (MO+PM+KRFT used to be one company before the spinoffs). I have been slowly adding to PM in the last couple weeks. The position is getting rather large and I am a bit concerned with their debt load and the foreign exchange rates. My position in GIS is too large as well. I may add to KRFT even with its recent price rise. It offers a high yield with a moderate PE, and I consider KRFT to be core so I am willing to buy at fair value. SYY's dividend growth is too low for me (less than 12% chowder ratio).
Discretionary |
Forward PE |
PE |
Yield |
PEG |
Beta |
Debt/Eq |
Payout |
MCD |
16.83 |
17.97 |
3.72% |
3.47 |
0.35 |
1.11 |
63.30% |
Most discretionary stocks have low yields except McDonalds. I do not plan to add to MCD because I believe they are in a transitional period where future growth will remain stagnant.
Energy |
Forward PE |
PE |
Yield |
PEG |
Beta |
Debt/Eq |
Payout |
CVX |
18.11 |
9.68 |
4.07% |
1.74 |
1.14 |
0.16 |
37.80% |
KMI |
|
|
4.24% |
3.85 |
0.67 |
3.02 |
139.20% |
XOM |
18.67 |
11.46 |
3.03% |
11.76 |
0.88 |
0.12 |
33.20% |
With the fall in crude oil, I believe these are the safest bets in the energy sector. However, I want to wait a bit longer since I feel that the turnaround isn't happening as of yet.
MLPs |
Forward PE |
PE |
Yield |
PEG |
Beta |
Debt/Eq |
Payout |
EPD |
|
|
4.30% |
3.35 |
0.70 |
1.25 |
180.60% |
MMP |
|
|
3.40% |
1.46 |
0.52 |
1.65 |
70.00% |
These MLPs' prices have been volatile lately due to the fall in the price of a barrel. I am highly considering EPD if it falls below $31. MMP is a bit expensive still for me. I am not a fan of owning MLPs because of tax complications.
Industrials |
Forward PE |
PE |
Yield |
PEG |
Beta |
Debt/Eq |
Payout |
GE |
13.43 |
15.94 |
3.90% |
2.27 |
1.44 |
2.77 |
52.50% |
CAT |
12.28 |
13.57 |
3.34% |
1.22 |
1.67 |
2.09 |
39.70% |
EMR |
14.11 |
19.79 |
3.12% |
2.43 |
1.32 |
0.60 |
56.00% |
LMT |
16.92 |
19.69 |
3.08% |
2.03 |
0.63 |
1.35 |
52.80% |
I may consider adding to LMT. They are around fair value compared to their 15 year average PE. EMR may be another stock I will consider, as it has a high credit rating and solid dividend history. I do not like CAT due to its volatility or GE due to its past dividend record.
Telecom |
Forward PE |
PE |
Yield |
PEG |
Beta |
Debt/Eq |
Payout |
T |
13.17 |
10.37 |
5.56% |
2.25 |
0.36 |
0.82 |
56.00% |
VZ |
12.89 |
9.96 |
4.58% |
1.19 |
0.33 |
6.59 |
43.90% |
I will most likely add to my position in T. I prioritize T over VZ due to the credit rating, and my position in T is not nearly as high as I would like it. I want T to be a large core holding in my portfolio.
Healthcare |
Forward PE |
PE |
Yield |
PEG |
Beta |
Debt/Eq |
Payout |
ABBV |
14.97 |
27.94 |
3.04% |
2.05 |
No Data |
3.18 |
70.40% |
I have not done enough research on ABBV so far. The debt, PE, and payout ratio are making me uninterested.
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