14 Large Caps With Rapid Dividend Growth And Strong Dividend Coverage

|
 |  Includes: BK, BP, CCL, CEO, CSX, DOW, GGB, IP, JPM, PH, PNC, SNP, USB, WFC
by: Kapitall

When evaluating dividend stocks, it is important to take into account cash coverage of dividend payments. If a company has plenty of operating cash flow to cover its dividend payments, it is more likely to continue paying its dividend yield.

We ran a screen on large-cap dividend stocks seeing rapid dividend growth year-over-year. We screened these stocks for those with at least three times the trailing-twelve-month operating cash flow per share compared to its TTM dividend per share.

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

Do you think these companies pay reliable dividends? Use this list as a starting-off point for your own analysis.

List sorted by dividend yield.

1. China Petroleum & Chemical Corp. (NYSE:SNP): Independent Oil & Gas Industry. Market cap of $73.29B. Dividend yield at 4.79%, payout ratio at 25.36%. Current year dividend per share estimate at $4.22 vs. TTM dividend per share at $3.28. TTM operating cash flow per share at $30.35. Might be undervalued at current levels, with a PEG ratio at 0.87, and P/FCF ratio at 11.65. The stock has performed poorly over the last month, losing 15%.

2. International Paper Co. (NYSE:IP): Paper & Paper Products Industry. Market cap of $10.22B. Dividend yield at 4.50%, payout ratio at 24.88%. Current year dividend per share estimate at $0.97 vs. TTM dividend per share at $0.70. TTM operating cash flow per share at $4.60. This is a risky stock that is significantly more volatile than the overall market (beta = 2.16). It's been a rough couple of days for the stock, losing 10.69% over the last week.

3. BP plc (NYSE:BP): Major Integrated Oil & Gas Industry. Market cap of $121.08B. Dividend yield at 4.39%, payout ratio at 13.17%. Current year dividend per share estimate at $1.71 vs. TTM dividend per share at $0.84. TTM operating cash flow per share at $2.97. It's been a rough couple of days for the stock, losing 7.92% over the last week.

4. The Dow Chemical Company (NYSE:DOW): Chemicals Diversified Industry. Market cap of $30.23B. Dividend yield at 3.92%, payout ratio at 31.29%. Current year dividend per share estimate at $0.86 vs. TTM dividend per share at $0.70. TTM operating cash flow per share at $2.98. This is a risky stock that is significantly more volatile than the overall market (beta = 2.24). It's been a rough couple of days for the stock, losing 14.93% over the last week.

5. Carnival Corporation (NYSE:CCL): General Entertainment Industry. Market cap of $23.62B. Dividend yield at 3.36%, payout ratio at 29.02%. Current year dividend per share estimate at $0.86 vs. TTM dividend per share at $0.70. TTM operating cash flow per share at $4.77. It's been a rough couple of days for the stock, losing 5.36% over the last week.

6. PNC Financial Services Group Inc. (NYSE:PNC): Money Center Banks Industry. Market cap of $22.62B. Dividend yield at 3.27%, payout ratio at 10.38%. Current year dividend per share estimate at $1.14 vs. TTM dividend per share at $0.65. TTM operating cash flow per share at $8.07. It's been a rough couple of days for the stock, losing 10.05% over the last week.

7. JPMorgan Chase & Co. (NYSE:JPM): Money Center Banks Industry. Market cap of $130.27B. Dividend yield at 3.0%, payout ratio at 13.26%. Current year dividend per share estimate at $0.97 vs. TTM dividend per share at $0.60. TTM operating cash flow per share at $2.33. The stock is currently stuck in a downtrend, trading 8.23% below its SMA20, 12.54% below its SMA50, and 18.64% below its SMA200. It's been a rough couple of days for the stock, losing 9.41% over the last week.

8. Gerdau S.A. (NYSE:GGB): Steel & Iron Industry. Market cap of $13.57B. Dividend yield at 2.85%, payout ratio at 28.64%. Current year dividend per share estimate at $0.26 vs. TTM dividend per share at $0.21. TTM operating cash flow per share at $1.00. It's been a rough couple of days for the stock, losing 7.18% over the last week.

9. The Bank of New York Mellon Corporation (NYSE:BK): Asset Management Industry. Market cap of $23.29B. Dividend yield at 2.76%, payout ratio at 18.68%. Current year dividend per share estimate at $0.51 vs. TTM dividend per share at $0.40. TTM operating cash flow per share at $4.22. Might be undervalued at current levels, with a PEG ratio at 0.71, and P/FCF ratio at 5.57. It's been a rough couple of days for the stock, losing 9.57% over the last week.

10. CNOOC Ltd. (NYSE:CEO): Independent Oil & Gas Industry. Market cap of $80.27B. Dividend yield at 2.60%, payout ratio at 32.20%. Current year dividend per share estimate at $7.30 vs. TTM dividend per share at $5.63. TTM operating cash flow per share at $29.14. The stock is currently stuck in a downtrend, trading 7.45% below its SMA20, 15.16% below its SMA50, and 18.99% below its SMA200. It's been a rough couple of days for the stock, losing 9.4% over the last week.

11. U.S. Bancorp (NYSE:USB): Regional Banks Industry. Market cap of $39.01B. Dividend yield at 2.47%, payout ratio at 16.75%. Current year dividend per share estimate at $0.48 vs. TTM dividend per share at $0.35. TTM operating cash flow per share at $5.24. The stock is currently stuck in a downtrend, trading 9.41% below its SMA20, 12.9% below its SMA50, and 16.76% below its SMA200. It's been a rough couple of days for the stock, losing 10.65% over the last week.

12. CSX Corp. (NASDAQ:CSX): Railroads Industry. Market cap of $22.11B. Dividend yield at 2.38%, payout ratio at 23.69%. Current year dividend per share estimate at $0.57 vs. TTM dividend per share at $0.37. TTM operating cash flow per share at $3.03. The stock is currently stuck in a downtrend, trading 11.12% below its SMA20, 17.34% below its SMA50, and 15.36% below its SMA200. It's been a rough couple of days for the stock, losing 12.14% over the last week.

13. Parker Hannifin Corporation (NYSE:PH): Industrial Equipment & Components Industry. Market cap of $10.31B. Dividend yield at 2.33%, payout ratio at 19.29%. Current year dividend per share estimate at $1.47 vs. TTM dividend per share at $1.25. TTM operating cash flow per share at $7.07. It's been a rough couple of days for the stock, losing 10.54% over the last week.

14. Wells Fargo & Company (NYSE:WFC): Money Center Banks Industry. Market cap of $120.86B. Dividend yield at 2.10%, payout ratio at 7.65%. Current year dividend per share estimate at $0.49 vs. TTM dividend per share at $0.34. TTM operating cash flow per share at $5.74. Might be undervalued at current levels, with a PEG ratio at 0.69, and P/FCF ratio at 4.33. It's been a rough couple of days for the stock, losing 8.51% over the last week.

*Dividend per share and operating cash flow 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.