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Our long-term dividend study showed that the average return of high dividend yielding stocks was 13.04% between 1927 and 2009. During that period, dividend stocks outperformed the market by an average of 1.36% per year. In another article, we provided a list of S&P500 stocks with market cap over $60 billion, and showed that high dividend mega-cap S&P500 stocks have performed better than both low dividend S&P 500 stocks and the SPY.

Here's a list of 12 large-cap companies with high dividend yields and Low-Debt ratios. All stocks in our list have market capitalizations above $10 billion, Total Debt / Equity ratio of below 0.4, P/E ratio of below 20 and annualized dividend yields of at least 4%. Market data is obtained from Finviz.

Company

Ticker

Total Debt/Equity

Dividend Yield

YTD Return

Chunghwa Telecom

CHT

0.01

5.57%

42.36%

Vivo Participacoes

VIV

0.23

12.13%

32.71%

Bristol-Myers

BMY

0.34

4.45%

15.61%

Sanofi-Aventis

SNY

0.38

5.55%

4.95%

ConocoPhillips

COP

0.33

4.00%

-0.71%

Taiwan Semiconductor

TSM

0.07

4.38%

-2.15%

PetroChina Co. Ltd.

PTR

0.32

4.39%

-4.07%

Raytheon Co.

RTN

0.35

4.19%

-9.36%

Sun Life Financial Inc.

SLF

0.34

5.74%

-14.16%

YPF S.A.

YPF

0.39

8.14%

-20.51%

Thomson Reuters

TRI

0.38

4.23%

-21.25%

Banco Santander

STD

0.35

10.90%

-21.48%

Average

0.16%


These 12 stocks returned 0.16% on average so far this year, vs. -5.17% for SPY. Seven stocks, CHT, VIV, BMY, SNY, COP, TSM and PTR beat the market. Here are the top 10 strong dividend stocks with the highest YTD return.

Chunghwa Telecom Co. Ltd (NYSE:CHT): Chunghwa is a telecommunications service provider in Taiwan. CHT recently traded at $34.34 and has a 5.57% dividend yield. CHT gained 42.36% this year. The stock has a market cap of $32.98 billion, P/E ratio of 18.85 and Total Debt / Equity ratio of 0.01. Jim Simons holds more than $20 million in CHT (see billionaire Jim Simons’ top stock picks here).

Vivo Participacoes SA (NYSE:VIV): VIV provides fixed-line telecommunications services in the State of Sao Paulo. VIV recently traded at $29.53 and has a 12.13% dividend yield. VIV gained 32.71% this year. The stock has a market cap of $33.48 billion, P/E ratio of 10.12 and Total Debt / Equity ratio of 0.23.

Bristol-Myers Squibb (NYSE:BMY): Bristol-Myers Squibb is a global biopharmaceutical company. BMY recently traded at $29.87 and has a 4.45% dividend yield. BMY gained 15.61% this year. The stock has a market cap of $50.54 billion, P/E ratio of 15.43 and Total Debt / Equity ratio of 0.34. Both Samuel Isaly and Simons hold more than $100 million in BMY.

Sanofi Aventis (NYSE:SNY): Sanofi is also a global and diversified healthcare company. SNY recently traded at $33.53 and has a 5.55% dividend yield. SNY gained 4.95% this year. The stock has a market cap of $88.66 billion, P/E ratio of 14.74 and Total Debt / Equity ratio of 0.38. Ken Fisher holds the biggest position in SNY (check out Fisher’s top stock picks).

ConocoPhillips (NYSE:COP): ConocoPhillips is an integrated energy company operating worldwide. COP recently traded at $66.75 and has a 4.00% dividend yield. COP lost 0.71% during the year. The stock has a market cap of $90.58 billion, P/E ratio of 8.31 and Total Debt / Equity ratio of 0.33. During the second quarter, Buffett invested around $600 Million in COP and increased his holdings to $2.8 Billion at the end of June (check out Warren Buffett’s new transactions).

Taiwan Semiconductor Manufacturing (NYSE:TSM): Taiwan Semiconductor Manufacturing is principally engaged in the research, development, manufacture and distribution of integrated circuit related products. TSM recently traded at $12.18 and has a 4.38% dividend yield. TSM lost 2.15% during the year. The stock has a market cap of $61.26 billion, P/E ratio of 11.15 and Total Debt / Equity ratio of 0.07. Both Ken Fisher and Jim Simons hold over $70 Million in TSM.

PetroChina Co. Ltd (NYSE:PTR): PetroChina is an oil and gas producer and seller in the People’s Republic of China. PTR recently traded at $124.75 and has a 4.39% dividend yield. PTR lost 4.07% during the year. The stock has a market cap of $223.71 billion, P/E ratio of 10.16 and Total Debt / Equity ratio of 0.32. Jim Simons holds over $30 Million in PTR.

Raytheon Co. (NYSE:RTN): Raytheon Company is one of the leading defense contractors providing control and communication systems in the United States. RTN recently traded at $41.05 and has a 4.19% dividend yield. RTN lost 9.36% during the year. The stock has a market cap of $14.52 billion, P/E ratio of 7.66 and Total Debt / Equity ratio of 0.35. Alex Roepers' Atlantic Investment holds more than $100M of RTN. Ric Dillon, Steven Richman and Cliff Asness are also among RTN investors.

Sun Life Financial Inc (NYSE:SLF): Sun Life Financial is a financial services company providing various life and health insurance services. SLF recently traded at $26.04 and has a 5.74% dividend yield. SLF lost 14.16% during this year. The stock has a market cap of $14.78 billion, P/E ratio of 8.24 and Total Debt / Equity ratio of 0.34.

YPF SA (NYSE:YPF): YPF SA is an Argentinean integrated oil and gas company. YPF recently traded at $39.09 and has an 8.14% dividend yield. YPF lost 20.51% during this year. The stock has a market cap of $15.37 billion, P/E ratio of 10.7 and Total Debt / Equity ratio of 0.39. Eric Mindich holds more than $400 million in YPF.



Disclosure: I am long COP.

Source: 12 Strong Dividend Stocks With Low-Debt And Low P/E Ratios