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High Dividends In Consumer Non-Cyclicals
Investing in dividends is never a guaranteed money maker. High-yield stocks could give your portfolio a lift as long as they keep getting paid. Looking at the company's distribution as a percentage of earnings could give hints of whether the dividend will be cut. A strong cash flow trend is also a benefit if the company is planning on paying its investors. Here are five stocks with dividend yields over 4% with a solid company behind them.
TUTORIAL: Financial Ratios
Yields In Tobacco
British American Tobacco (ADR) currently pays a 6.3% yield in the trailing 12 months. With being involved in 180 markets around the world, British American Tobacco is definitely has a broad reach.
British American Tobacco currently has a trailing 12-month return on equity (ROE) of 36%. That is a good return on equity, but it isn't the highest on the list. That honor goes to Altria Group with a 84% ROE, while Reynolds America is sitting at a 20% ROE. Reynolds America and Altria Group are both major players in the tobacco industry yielding around 6% each. (Both ROE and ROA measure performance, but sometimes they tell a very different story. This is why they're best used together. Learn more in ROA And ROE Give Clear Picture Of Corporate Health.)
Food And Grocery
B&G Foods and Cal-Maine Foods are in the food industry, which weathers economic turmoil but doesn't always give the best gains in a bull market. B&G Foods manufactures and sells food products mainly focusing on long shelf life; for example, vinegar, spices, canned foods or pickles. On March 28, Cal-Maine Foods announced a dividend payment of $0.47 per share, payable May 12, 2011 to holders of record on April 27, 2011. At a share price hovering around $28, that's a 6.5% yield.
Bottom Line
Dividends are not guaranteed, but when the markets are popping and locking, a stream of cash is welcome to any investor. These consumer stocks and non-cyclicals will not escape drops but could be worth a deeper look.
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TUTORIAL: Financial Ratios
| Company | Yield | Market Cap |
| Altria Group (NYSE:MO) | 5.7% | 56.5B |
| B&G Foods (NYSE:BGS) | 4.6% | 898.6M |
| British American Tobacco (ADR) (NYSE:BTI) | 6.3% | 83.8B |
| Cal-Maine Foods (Nasdaq:CALM) | 6.5% | 682.7M |
| Reynolds American (NYSE:RAI) | 5.9% | 21.2B |
Yields In Tobacco
British American Tobacco (ADR) currently pays a 6.3% yield in the trailing 12 months. With being involved in 180 markets around the world, British American Tobacco is definitely has a broad reach.
Food And Grocery
B&G Foods and Cal-Maine Foods are in the food industry, which weathers economic turmoil but doesn't always give the best gains in a bull market. B&G Foods manufactures and sells food products mainly focusing on long shelf life; for example, vinegar, spices, canned foods or pickles. On March 28, Cal-Maine Foods announced a dividend payment of $0.47 per share, payable May 12, 2011 to holders of record on April 27, 2011. At a share price hovering around $28, that's a 6.5% yield.
Bottom Line
Dividends are not guaranteed, but when the markets are popping and locking, a stream of cash is welcome to any investor. These consumer stocks and non-cyclicals will not escape drops but could be worth a deeper look.
Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!
by
Investopedia Staff
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