Saturday, November 29, 2008

High Quality Dividend Stocks Near 52-Week Low

In an environment where the economy is going through a deleveraging process, investing in higher quality firms that rely on lower levels of debt can be beneficial from an operating perspective. Below is a small list of A+ rated companies with market caps greater than $5.0 billion and debt to cap less than 35%.



























































CompanySymbolS&P RankMarket CapDividend YieldDebt/Cap% Above 52-week Low
Sysco CorpSYYA+$13.4B3.94%31.9%13.1%
Johnson & JohnsonJNJA+$161.7B3.16%23.7%12.5%
PepsicoPEPA+$85.3B3.10%31.6%14.0%
General DynamicsGDA+$19.9B2.79%14.0%8.1%
Stryker Corp.SYKA+$15.6B.86%.4%10.0%
DanaherDHRA+$17.2B.22%21.0%13.8%


4 comments :

Shane said...

Are the dividend yields of the last two even worth going after?

I suppose it's better than nothing...but not by much.

David Templeton, CFA said...

Shane,

I simply listed the last two given their lower level of debt and the stock price in relation to the 52-week low. It should be noted that generally, the lower yielding stocks tend to be the faster growers. On the other hand, making investment decisions around the company's dividend practices can be more challenging since the dividend amount does not significantly impact cash flow.

Certainly, performing additional research on all the companies is warranted. Some firms my be trading near their lows for valid reasons.

ol said...

Hi David,

What kind of stock screener did you use for this list?

Olivier

ol said...

Hi David,

What kind of stock screener did you use for this list?

Olivier