Wednesday, November 8, 2017

8 High-Yielding Mega-Cap Stocks

There is perceived safety in size. Giant corporations aren't randomly grown. Instead, they are carefully built through superior management and foresight. Often these are more mature companies that also offer stability and predictability, usually at the expense of dynamic growth. These are your mega-cap stocks.

There is no universal definition of mega-cap stocks. Many define mega-cap as companies with a market cap exceeding $100 billion. Needless to say, most mega-cap companies are headquartered in the U.S., Europe and Japan. The 2000's commodity boom resulted in many energy and resource companies achieving mega-cap status, while the financial crisis resulted in some of the financial institutions losing mega-cap status.

Mega-caps are generally viewed as a stable safe-haven for stock investors during times of uncertainty due to their size and industry dominance. The recent turmoil in Europe from debt concerns global left investors fleeing the euro into dollar-denominated assets like Treasuries and mega-cap stocks.

In a 2012 New York Time article, Wallace Weitz, president of the Weitz Funds, said, “I’ve been doing this for more than 40 years, yet it still surprises me that people look away from good companies because they ‘haven’t done anything’ for a long time.” That’s exactly where value-minded investors ought to be looking for attractively priced shares, he said.

This week, I screened my dividend growth stocks database for stocks with a market cap over $100 billion and with a dividend yield above 3.0%. The results are presented below:

The Procter & Gamble Company (PG) is a leading consumer products company that markets household and personal care products in more than 180 countries. The company has paid a cash dividend to shareholders every year since 1891 and has increased its dividend payments for 60 consecutive years.
Yield: 3.2% | Market Cap: $219.2B

The Coca-Cola Company (KO) is the world's largest soft drink company, and also has a sizable fruit juice business.The company has paid a cash dividend to shareholders every year since 1893 and has increased its dividend payments for 55 consecutive years.
Yield: 3.3% | Market Cap: $194.1B

Pfizer Inc. (PFE) ranks as one of the world's largest pharmaceutical companies, offering a wide range of drugs across a broad therapeutic spectrum. The company has paid a cash dividend to shareholders every year since 1901 and has increased its dividend payments for 11 consecutive years.
Yield: 3.6% | Market Cap: $210.5B

Exxon Mobil Corp. (XOM), formed through the merger of Exxon and Mobil in late 1999, is the world's largest publicly owned integrated oil company. The company has paid a cash dividend to shareholders every year since 1882 and has increased its dividend payments for 35 consecutive years.
Yield: 3.7% | Market Cap: $354.6B

Chevron Corporation (CVX) is a global integrated oil company (formerly ChevronTexaco) has interests in exploration, production, refining and marketing, and petrochemicals. The company has paid a cash dividend to shareholders every year since 1912 and has increased its dividend payments for 30 consecutive years.
Yield: 3.7% | Market Cap: $222.0B

IBM's (IBM) global offerings include information technology services, software, computer hardware equipment, fundamental research, and related financing. The company has paid a cash dividend to shareholders every year since 1916 and has increased its dividend payments for 22 consecutive years.
Yield: 4.0% | Market Cap: $139.78B

Verizon Communications Inc. (VZ) is the largest U.S. wireless carrier, Verizon also offers wireline and broadband services primarily in the northeastern U.S. The company has paid a cash dividend to shareholders every year since 1984 and has increased its dividend payments for 13 consecutive years.
Yield: 5.2% | Market Cap: $185.5B

AT&T Inc. (T) provides telephone and broadband service and holds full ownership of AT&T Mobility. The company has paid a cash dividend to shareholders every year since 1984 and has increased its dividend payments for 34 consecutive years.
Yield: 6.0% | Market Cap: $201.67B

As with past screens, the data presented above is in its raw form. Some of the companies would be disqualified for poor dividend fundamentals. However some of the others may be worth additional due diligence.

My database, D4L-Data, is an Open Office spreadsheet containing more than 20 columns of information on the 250+ companies that I track. The data is sortable and has built-in buttons and macros to make it easy to use. Companies included in the list are those that have had a history of dividend growth. The D4L-Data spreadsheet is a part of D4L-Premium Services and is updated each Saturday for subscribers.

Full Disclosure: Long PG, KO, XOM, CVX, IBM, VZ, T. See a list of all my Dividend Growth Portfolio holdings here.

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- 3 Higher-Quality, High-Yield Dividend Stocks
- 10 Stocks With Sustainable Dividend Growth
- 12 Dividend Growth Stocks With A Good Yield/Growth Mix


Tags: PG, KO, PFE, XOM, CVX, IBM, VZ, T,

1 comment:

  1. What are your thoughts on VZ right now? I was looking at them for my nov buy because of their deal with STRP but I went with GD instead.

    ReplyDelete

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