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%.
| Company | Symbol | S&P Rank | Market Cap | Dividend Yield | Debt/Cap | % Above 52-week Low |
|---|---|---|---|---|---|---|
| Sysco Corp | SYY | A+ | $13.4B | 3.94% | 31.9% | 13.1% |
| Johnson & Johnson | JNJ | A+ | $161.7B | 3.16% | 23.7% | 12.5% |
| Pepsico | PEP | A+ | $85.3B | 3.10% | 31.6% | 14.0% |
| General Dynamics | GD | A+ | $19.9B | 2.79% | 14.0% | 8.1% |
| Stryker Corp. | SYK | A+ | $15.6B | .86% | .4% | 10.0% |
| Danaher | DHR | A+ | $17.2B | .22% | 21.0% | 13.8% |
4 comments :
Are the dividend yields of the last two even worth going after?
I suppose it's better than nothing...but not by much.
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.
Hi David,
What kind of stock screener did you use for this list?
Olivier
Hi David,
What kind of stock screener did you use for this list?
Olivier
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