But, its five
years average dividend yield stands at 3,2, not so far from what it currently yields.
CMP trades at about 14x forward earnings and offers a dividend yield of 3.6 %, which is meaningfully higher than its five
year average dividend yield of 2.7 % and a great starting base for investors living off dividends in retirement.
NNN's stock trades at 19.4 times estimated 2016 FFO per share and has a dividend yield of 3.8 %, which is significantly lower than its five -
year average dividend yield of 4.9 %.
Eaton trades at a forward price - to - earnings multiple of 14.2 and has a dividend yield of 3.7 %, which is higher than its five -
year average dividend yield of 3.1 %.
The 5th line down presents the dividend yield, and in the far right column you can see TROW's 5 -
year average dividend yield is 2.0 %.
According to Morningstar, MAIN's 5 -
year average dividend yield is 6.8 %.
This compares to a five -
year average dividend yield of 1.6 %.
DUK's stock has a dividend yield of 4.1 %, which is somewhat below its five -
year average dividend yield of 4.3 %.
Not exact matches
The forward price / earnings ratio of the top 25 % of S&P 500 stocks by
dividend yield is 17, vs. a 36 -
year average of 12, according to Ned Davis Research.
Two -
year Treasury bond
yields rose above the
average S&P 500 stock
dividend in January for the first time since 2008.
Luciano Siracusano, chief investment strategist at ETF and index developer WisdomTree (wetf), says the 1,400
dividend - paying stocks in the company's WT Dividend index now have average yields of about 3 %, twice the yield of 10 - year Tre
dividend - paying stocks in the company's WT
Dividend index now have average yields of about 3 %, twice the yield of 10 - year Tre
Dividend index now have
average yields of about 3 %, twice the
yield of 10 -
year Treasuries.
The
average stock on the S&P 500 stock index has a
dividend yield of about 2 percent whereas the 10 -
year Treasury note
yields 1.7 percent.
I plan on talking about
dividend stocks, where they are at today and comparing them to 5
year dividend yield averages.
Of course, in recent
years, stock prices have grown much faster than earnings and
dividends, driving the P / E far above its historical
average and the
dividend yield (D / P) far below its historical
average.
Kick in the
average 2.8 %
dividend yield since 1982, and you arrive at the 33 -
year total return since 1982 of 12.3 % annually.
However, with both the 10 -
year Treasury
yield and the
average dividend yield for a company on the S&P 500 hovering around 2.35 %, that doesn't leave much in the way of real gains if inflation is running at 2 % per annum.
Currently, their
dividend yields 3.26 %, which is higher than their 5
year average.
I've also included a Google Docs list of all the companies in the list with their streak length, but the excel spreadsheets provided above have a lot more information like the
dividend yield,
average highest
yield for 3, 5 and 10
years, the past 10
years worth of
dividends, and lots of other stock information.
If you're an income investor, you're looking for stocks that have higher - than -
average dividends and
dividend yields, a steady track record of paying out
dividends, stable performance, solid reputations, and rising
dividends year over
year.
If the
dividend yield rises to the historical
average of 4 % even 30
years from now, investors will have earned a total return of just 5 % annually over that span.
If I assume a
dividend growth rate of 6 percent (about the long - run
average *), the current S&P 500
dividend yield of 2.1 percent (from multpl.com), a terminal S&P 500
dividend yield of 4 percent (Hussman says that the
dividend yield on stocks has historically
averaged about 4 percent), the expected nominal return over ten
years is 2.4 percent annually.
Let's assume you have a diversified portfolio
yielding 3,5 %, some good old blue chips grow their
dividend slowly, some newer companies keep raising their
dividend higher and higher like their life depends on it,
averaging dividend increases of let's say 7 % per
year.
If he insists on an
average dividend yield of 3 %, he would be collecting $ 94,672.08 in cash
dividends each
year.
Still, CAT is a
dividend machine that is currently
yielding a high 5.04 % and a current PE of 12.7 which is well below its five
year average.
Taking this key metric into account, I ran a screen for
dividend payers in the energy and materials sector, trading on a major U.S. exchange with
yields better than the 10 -
year Treasury and an even more sustainable payout ratio of less than 25 % — lower than the S&P 500
average.
This second trend borne from ultra-loose monetary policy has forced many investors to seek out higher -
yielding alternatives including
dividend stocks, which, on
average,
yield more than 10 -
year government bonds in most major developed markets, including Canada (see chart below).
The first screen looks for companies with above -
average dividend yields that have also maintained or increased their
dividends over the past five
years.
According to Brian, not only is the stock's forward P / E ratio of 15.0 much lower than its historical norm of 19.1, but its current
dividend yield of 2 % is nearly double the company's 22 -
year average yield of 1.2 %.
Based on the
average yield of its top holdings, minus manager fees and expenses, I believe that it will generate in excess of 5 % per
year in
dividends and perhaps more.
Even despite its 24 % share price collapse over the last
year, Nike's stock still trades at a forward P / E ratio of 21.3 and offers a small
dividend yield of 1.3 %, which is about in line with the stock's five -
year average yield.
Note on the «
Dividend Yield %» line that PG's current 3.0 % yield is the same as its 5 - year average yield shown in the last co
Yield %» line that PG's current 3.0 %
yield is the same as its 5 - year average yield shown in the last co
yield is the same as its 5 -
year average yield shown in the last co
yield shown in the last column.
As of this writing, Newell Rubbermaid has a market cap of 20 billion, a forward P / E ratio of 15 and a
dividend yield of 1.71 %, which is just below its five -
year average.
The higher -
yielding stocks paid an
average total
dividend over the 4 1/2 -
year period of $ 5.72, while the lower -
yielding stocks provided
average total
dividends of $ 3.43.
Historically, the S&P 500
average dividend yield has been higher, typically above 3 % for the 100
years prior to Black Monday in 1987:
A primary screen for high -
dividend -
yield stocks may include a criterion for companies whose
dividend yields are above that of the company's five -
year average high
yield.
If all you wanted was a 3.6 % per
year income stream, you could just buy a portfolio of stocks that had an
average dividend yield of 3.6 % per
year or more (such as those above).
For example, to generate $ 40,000 in
dividends every
year from a portfolio that
yields on
average 4 %, you would need a $ 1,000,000 portfolio.
For all the talk of
dividend investing in recent
years, it's easy to lose sight of the fact that the
average U.S. stock, as measured by the S&P 500, still
yields a paltry 1.9 %.
The remaining stocks are then assigned a rank based on their
yield (the higher the
yield the higher the rank), payout ratio (the lower the payout ratio the higher the rank), 3
year dividend growth rate, and 5/10 year Dividend Acceleration / Deceleration (5 - year average increase divided by 10 - year average in
dividend growth rate, and 5/10
year Dividend Acceleration / Deceleration (5 - year average increase divided by 10 - year average in
Dividend Acceleration / Deceleration (5 -
year average increase divided by 10 -
year average increase).
These have an
average dividend yield of 4 %, approximately three percentage points above the current
yield on 10 -
year TIPS, and over one percentage point ahead of the
yield on standard 10 -
year Treasury bonds.
These companies have increased their
dividend for at least 15
years and have a lower than
average price to earnings (PE) ratio, a higher operating margin, a low price to book, a reasonable
dividend yield and payout ratio.
A little over a
year ago, in June of 2015, I started a series of articles in which I highlight the stocks from the
Dividend Champions list that have the highest and the lowest Percent Above
Average Yield (PAAY) over the past
year and over the past five
years.
DIV STRK is consecutive
years of
dividend increases; DIV YLD is
yield using the most recently announced
dividend; 5 YR YLD is
average dividend yield over the past 5
years; REC DG is most recent
year - over-
year dividend growth; 5 YR DG is
average annual
dividend growth over the past 5
years; PRICE was at market close Friday, March 2; FAIR VAL is Morningstar's «Fair Value Estimate»; FWD P / E is price / earnings ratio based on projected 2018 earnings; 5 YR P / E is
average P / E ratio over the past 5
years; MOAT is Morningstar's rating of competitive economic advantage; SFT is Value Line's «Safety» score; CRD is Standard & Poor's credit rating; MKT CAP is market cap in billions of dollars.
One final thought: If you were to take a $ 100,000 portfolio that pays an
average yield of 12 % and reinvest all
dividends for the next 20
years, you would end up with almost $ 1 million (assuming the portfolio is in a tax - advantaged account), and that's assuming that all of the share prices stay exactly the same.
Even with the Kimberly - Clark's
dividend yield climbing to a 52 - week high of 3.4 % (and well above its 5 -
year average of 3.1 %), a million - dollar portfolio at that
yield would pay you just $ 34,000 a
year.
Its
dividend yield is above the peer
average over the past ten
years and increase from 2.8 % in 2012 to 3 % currently.
To Oct. 11, 2011, the
average year to date total return (capital gains plus
dividend yield) for these 34 issues was 10.66 %.
Today, the nation wide
average yield for a money market fund is about 0.1 %, so investors can expect to see a steady drop in
dividends over the last
year of the fund if interest rates stay where they are today.
Currently, their
dividend yields 3.26 %, which is higher than their 5
year average.
AGNC pays $ 2.75 annual
dividend yield: 11.80 % Its projected 10YOC is 11.80 %, payout ratio 129 % (note, this is a REIT, the ratio will be at or higher than 100 %) 5 yr
average growth: -6.88 % paid
dividend since: 2008 # of
years of consecutive
dividend increases: 0
years