Five High Dividend Yield Stocks
Even in this low-rate environment, there are a good number of companies that provide high yield dividend compared to the treasury or other type of bonds. However, choosing the best among them becomes a tougher proposition for many. This article deals with stocks that could be considered for those seeking high yield dividend paying stocks.
Reynolds American, Inc. (NYSE:RAI)
The consumer company’s dividend provided a yield of 4.10% and the five-year average dividend yield is still healthier at 5.10%. The company has paid out an annual dividend of $2.68.
The higher yield is ably supported by consistent dividend increase in the last five years. That can be seen from the way Reynolds American, Inc. (NYSE:RAI) has maintained its dividend payout ratio of 89% in the same period. The dividend growth rate for the three-year, as well as, five-year period worked out to 7.62% and 9.28% respectively.
Lockheed Martin Corporation (NYSE:LMT)
The company’s latest dividend yield was 3.10% while its five-year average dividend yield was higher at 3.60%. The defense equipment maker has paid $1.50 as a quarterly dividend making it the total yearly dividend to $6.00.
On the growth rate in the last three and five year periods, Lockheed Martin Corporation (NYSE:LMT) recorded 19.24% and 18.73% uptick respectively. The company’s last dividend payout ratio of 56% was higher than the five-year average rate of 47%. The company also lifted its dividend for twelve straight years.
Pfizer Inc. (NYSE:PFE)
The company paid a dividend of 28 cents a share, which meant a yield of 3.4%. The five-year average yield also worked out the same. The annual dividend represents $1.12 a share. The company has been boosting its dividend in the last four straight years.
Pfizer Inc. (NYSE:PFE) average dividend growth rate for the three year was a strong 9.14% while the average dividend growth pace for the five-year period was 5.71%. Its last dividend payout ratio was 63%, which was higher than the five-year average dividend payout ratio of 56%.
Darden Restaurants, Inc. (NYSE:DRI)
The last dividend paid by the company was 55 cents a share for a quarter, which works out to $2.20 a share on an annualized basis. As a result, the dividend provided a yield of 3.7%, and the five-year average dividend yield was also the same.
Average dividend growth rate of Darden Restaurants, Inc. (NYSE:DRI) for the three year, as well as, five year period represented 11.2% and 18.8% respectively. The current dividend payout ratio of 44% per quarter was lower than the five-year average payout ratio of 53%, suggesting an increase in payout is quite a possibility.
Consolidated Edison, Inc. (NYSE:ED)
The company has been increasing dividend for four decades. The last quarterly dividend was 63 cents a share, which worked out to $2.52 a share for a full year. The dividend offered yield of 3.8% while the average dividend yield for the five-year period was 4.3%.
Dividend payout ratio of Consolidated Edison, Inc. (NYSE:ED) represented 60%, whereas the average payout ratio for the five-year period represented 65%. Dividend growth rate for the three year and five year period worked out to 1.64% and 1.32% respectively.
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