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Profitability is a very important consideration when evaluating dividend stocks. Companies with weak profitability are less likely to be able to maintain their dividend yield. If you want to rely on a stock’s dividend, be sure to check its profitability first.

We ran a screen on large-cap companies paying dividend yields above 2%. We screened these for those that are highly profitable, beating their industry peers on gross, operating, and pretax margins.

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.

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.


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

List sorted by dividend yield.

1. Entergy Corporation (NYSE:ETR): Electric Utilities Industry. Market cap of $11.50B. Operates as an integrated energy company in the United States. Dividend yield at 5.14%, payout ratio at 46.76%. TTM gross margin at 31.07% vs. industry gross margin at 27.54%. TTM operating margin at 19.54% vs. industry operating margin at 19.03%. TTM pretax margin at 16.83% vs. industry pretax margin at 14.61%. The stock has lost 14.01% over the last year.

2. Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM): Semiconductor Industry. Market cap of $62.04B. Engages in the computer-aided designing, manufacturing, packaging, testing, and selling integrated circuits and other semiconductor devices; and manufacturing masks. Dividend yield at 4.33%, payout ratio at 48.60%. TTM gross margin at 70.95% vs. industry gross margin at 60.77%. TTM operating margin at 36.91% vs. industry operating margin at 26.71%. TTM pretax margin at 39.22% vs. industry pretax margin at 26.64%. The stock has gained 32.71% over the last year.

3. Intel Corporation (NASDAQ:INTC): Semiconductor Industry. Market cap of $106.28B. Engages in the design, manufacture, and sale of integrated circuits for computing and communications industries worldwide. Dividend yield at 4.15%, payout ratio at 29.97%. TTM gross margin at 74.42% vs. industry gross margin at 60.77%. TTM operating margin at 34.39% vs. industry operating margin at 26.71%. TTM pretax margin at 34.43% vs. industry pretax margin at 26.64%. The stock has gained 18.5% over the last year.

4. Public Service Enterprise Group Inc. (NYSE:PEG): Diversified Utilities Industry. Market cap of $17.05B. Operates in the energy industry primarily in the northeastern and mid Atlantic United States. Dividend yield at 4.07%, payout ratio at 42.80%. TTM gross margin at 34.34% vs. industry gross margin at 26.61%. TTM operating margin at 26.0% vs. industry operating margin at 17.88%. TTM pretax margin at 23.53% vs. industry pretax margin at 13.17%. The stock has gained 10.03% over the last year.

5. Enersis S.A. (NYSE:ENI): Foreign Utilities Industry. Market cap of $13.02B. Engages in the generation, transmission, and distribution of electricity in Chile, Argentina, Brazil, Colombia, and Peru. Dividend yield at 3.91%, payout ratio at 36.94%. TTM gross margin at 30.23% vs. industry gross margin at 27.44%. TTM operating margin at 23.85% vs. industry operating margin at 18.96%. TTM pretax margin at 20.46% vs. industry pretax margin at 14.55%. The stock has lost 5.9% over the last year.

6. Campbell Soup Co. (NYSE:CPB): Processed & Packaged Goods Industry. Market cap of $10.18B. Engages in the manufacture and marketing of branded convenience food products worldwide. Dividend yield at 3.66%, payout ratio at 47.09%. TTM gross margin at 43.74% vs. industry gross margin at 34.72%. TTM operating margin at 17.12% vs. industry operating margin at 12.72%. TTM pretax margin at 15.54% vs. industry pretax margin at 9.85%. The stock has lost 12.07% over the last year.

7. Procter & Gamble Co. (NYSE:PG): Personal Products Industry. Market cap of $174.48B. Provides consumer packaged goods in the United States and internationally. Dividend yield at 3.31%, payout ratio at 47.47%. TTM gross margin at 54.06% vs. industry gross margin at 52.78%. TTM operating margin at 19.16% vs. industry operating margin at 19.08%. TTM pretax margin at 18.56% vs. industry pretax margin at 18.0%. The stock has gained 9.82% over the last year.

8. General Mills, Inc. (NYSE:GIS): Processed & Packaged Goods Industry. Market cap of $24.35B. General Mills, Inc. manufactures and markets branded consumer foods worldwide. Dividend yield at 3.24%, payout ratio at 40.56%. TTM gross margin at 43.19% vs. industry gross margin at 34.32%. TTM operating margin at 18.56% vs. industry operating margin at 12.42%. TTM pretax margin at 16.97% vs. industry pretax margin at 9.74%. The stock has gained 7.45% over the last year.

9. Kellogg Company (NYSE:K): Processed & Packaged Goods Industry. Market cap of $19.49B. Kellogg Company and its subsidiaries manufacture and market ready-to-eat cereal and convenience food products primarily in North America, Europe, Latin America, and the Asia Pacific. Dividend yield at 3.19%, payout ratio at 48.06%. TTM gross margin at 45.34% vs. industry gross margin at 34.32%. TTM operating margin at 16.01% vs. industry operating margin at 12.42%. TTM pretax margin at 13.45% vs. industry pretax margin at 9.74%. The stock has gained 11.81% over the last year.

10. Time Warner Inc. (NYSE:TWX): Entertainment Industry. Market cap of $32.66B. Operates as a media and entertainment company in the United States and internationally. Dividend yield at 3.01%, payout ratio at 35.96%. TTM gross margin at 45.61% vs. industry gross margin at 43.05%. TTM operating margin at 19.41% vs. industry operating margin at 16.37%. TTM pretax margin at 13.83% vs. industry pretax margin at 12.81%. The stock has had a couple of great days, gaining 9.11% over the last week.

11. Emerson Electric Co. (NYSE:EMR): Industrial Equipment & Components Industry. Market cap of $34.60B. Operates as a diversified manufacturing and technology company. Dividend yield at 2.97%, payout ratio at 43.47%. TTM gross margin at 42.15% vs. industry gross margin at 35.90%. TTM operating margin at 15.95% vs. industry operating margin at 10.87%. TTM pretax margin at 14.35% vs. industry pretax margin at 7.87%. The stock has gained 2.18% over the last year.

12. PNC Financial Services Group Inc. (NYSE:PNC): Money Center Banks Industry. Market cap of $25.92B. Operates as a diversified financial services company. Dividend yield at 2.84%, payout ratio at 10.38%. TTM gross margin at 79.25% vs. industry gross margin at 70.89%. TTM operating margin at 40.02% vs. industry operating margin at 39.04%. TTM pretax margin at 26.70% vs. industry pretax margin at 22.33%. The stock has had a couple of great days, gaining 9.47% over the last week. The stock has performed poorly over the last month, losing 10.27%.

13. Honeywell International Inc. (NYSE:HON): Aerospace/Defense Products & Services Industry. Market cap of $37.0B. Operates as a diversified technology and manufacturing company worldwide. Dividend yield at 2.81%, payout ratio at 40.34%. TTM gross margin at 28.99% vs. industry gross margin at 26.06%. TTM operating margin at 12.34% vs. industry operating margin at 11.95%. TTM pretax margin at 10.06% vs. industry pretax margin at 7.21%. The stock has had a couple of great days, gaining 7.09% over the last week.

14. Wal-Mart Stores Inc. (NYSE:WMT): Discount, Variety Stores Industry. Market cap of $183.42B. Operates retail stores in various formats worldwide. Dividend yield at 2.76%, payout ratio at 29.87%. TTM gross margin at 27.04% vs. industry gross margin at 24.96%. TTM operating margin at 6.0% vs. industry operating margin at 5.50%. TTM pretax margin at 5.50% vs. industry pretax margin at 5.11%. The stock has gained 8.15% over the last year.

15. JPMorgan Chase & Co. (NYSE:JPM): Money Center Banks Industry. Market cap of $144.50B. Provides various financial services worldwide. Dividend yield at 2.70%, payout ratio at 13.26%. TTM gross margin at 79.98% vs. industry gross margin at 62.16%. TTM operating margin at 47.17% vs. industry operating margin at 38.60%. TTM pretax margin at 25.37% vs. industry pretax margin at 16.03%. The stock has had a couple of great days, gaining 6.56% over the last week.

16. McDonald's Corp. (NYSE:MCD): Restaurants Industry. Market cap of $93.66B. Operates as a foodservice retailer worldwide. Dividend yield at 2.69%, payout ratio at 47.51%. TTM gross margin at 44.97% vs. industry gross margin at 37.38%. TTM operating margin at 30.44% vs. industry operating margin at 19.28%. TTM pretax margin at 29.27% vs. industry pretax margin at 17.83%. The stock has gained 28.06% over the last year.

17. The Coca-Cola Company (NYSE:KO): Beverages Industry. Market cap of $160.41B. Distributes, and markets nonalcoholic beverages worldwide. Dividend yield at 2.69%, payout ratio at 33.38%. TTM gross margin at 66.67% vs. industry gross margin at 59.79%. TTM operating margin at 24.48% vs. industry operating margin at 23.36%. TTM pretax margin at 36.13% vs. industry pretax margin at 25.83%. The stock has gained 28.68% over the last year.

18. 3M Co. (NYSE:MMM): Conglomerates Industry. Market cap of $58.23B. Operates as a diversified technology company worldwide. Dividend yield at 2.68%, payout ratio at 35.88%. TTM gross margin at 51.60% vs. industry gross margin at 48.83%. TTM operating margin at 21.38% vs. industry operating margin at 16.36%. TTM pretax margin at 20.85% vs. industry pretax margin at 13.13%. The stock has gained 7.11% over the last year.

19. United Technologies Corp. (NYSE:UTX): Conglomerates Industry. Market cap of $67.03B. Provides technology products and services to the building systems and aerospace industries worldwide. Dividend yield at 2.60%, payout ratio at 34.14%. TTM gross margin at 30.46% vs. industry gross margin at 26.06%. TTM operating margin at 13.89% vs. industry operating margin at 11.95%. TTM pretax margin at 12.58% vs. industry pretax margin at 7.21%. The stock has had a couple of great days, gaining 5.48% over the last week.

20. Colgate-Palmolive Co. (NYSE:CL): Personal Products Industry. Market cap of $44.10B. Colgate-Palmolive Company, together with its subsidiaries, manufactures and markets consumer products worldwide. Dividend yield at 2.56%, payout ratio at 43.72%. TTM gross margin at 61.01% vs. industry gross margin at 52.79%. TTM operating margin at 23.83% vs. industry operating margin at 19.09%. TTM pretax margin at 22.92% vs. industry pretax margin at 18.0%. The stock has gained 26.15% over the last year.

*Profitability data sourced from Fidelity, all other data sourced from Finviz.

Source: 20 Large-Cap Dividend Stocks With Impressive Profitability