4 Large Cap Stocks With Rapid Dividend Growth and Good Corporate Governance

|
 |  Includes: BK, CSX, JPM, WFC
by: Kapitall

One important consideration for stocks is the corporate governance policies of the company, such as its board composition and shareholder rights, which have important implications to the company’s performance.

RiskMetrics Group gives ratings for four areas of corporate governance, on risks related to: the board, the audit committee, the compensation committee, and shareholder rights.

We ran a screen on large-cap stocks seeing rapid dividend growth, comparing the current year dividend per share estimate to the trailing-twelve-month dividend per share. We screened these companies for those that received “low risk” ratings in all four corporate governance areas from RiskMetrics Group.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.


(Click to enlarge)

Do you think these companies are being run well? Use this list as a starting-off point for your own analysis.

List sorted by dividend yield.

1. JPMorgan Chase & Co. (NYSE:JPM): Money Center Banks Industry. Market cap of $144.64B. Dividend yield at 2.75%, payout ratio at 12.70%. Current year dividend per share estimate at $0.97 vs. TTM dividend per share at $0.60. According to RiskMetrics, the company has "low risk" in all four corporate governance categories. It's been a rough couple of days for the stock, losing 8.63% over the last week.

2. The Bank of New York Mellon Corporation (NYSE:BK): Asset Management Industry. Market cap of $26.21B. Dividend yield at 2.46%, payout ratio at 18.66%. Current year dividend per share estimate at $0.51 vs. TTM dividend per share at $0.40. According to RiskMetrics, the company has "low risk" in all four corporate governance categories. It's been a rough couple of days for the stock, losing 12.8% over the last week.

3. CSX Corp. (NYSE:CSX): Railroads Industry. Market cap of $24.18B. Dividend yield at 2.17%, payout ratio at 23.69%. Current year dividend per share estimate at $0.65 vs. TTM dividend per share at $0.37. According to RiskMetrics, the company has "low risk" in all four corporate governance categories. It's been a rough couple of days for the stock, losing 5.92% over the last week.

4. Wells Fargo & Company (NYSE:WFC): Money Center Banks Industry. Market cap of $131.06B. Dividend yield at 1.94%, payout ratio at 13.12%. Current year dividend per share estimate at $0.49 vs. TTM dividend per share at $0.34. According to RiskMetrics, the company has "low risk" in all four corporate governance categories. Might be undervalued at current levels, with a PEG ratio at 0.74, and P/FCF ratio at 4.7. It's been a rough couple of days for the stock, losing 8.43% over the last week.

*RiskMetrics ratings data sourced from Yahoo! Finance, dividend per share data sourced from Screener.co, all other data sourced from Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.