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.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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