15 High Dividend Yield S&P 500 Stocks With Strong Corporate Governance

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 |  Includes: CVX, DD, ETR, GE, GIS, INTC, ITW, JPM, PEP, PG, SRE, SWY, TWC, TWX, UPS
by: Kapitall

It’s important to remember that stocks represent ownership interests in companies run by real management teams. How well a company is run has big implications for its profitability and its ability to maintain its dividend yield.

One way to evaluate this is by looking at the corporate governance policies of the company, such as its board composition and shareholder rights.

Institutional Shareholder Services (ISS) 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 stocks from the S&P 500 paying dividend yields above 3% for those receiving “low concern” ratings in all four corporate governance categories rated by ISS.

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 companies are being run well? Use this list as a starting-off point for your own analysis.
List sorted by market cap.

1. Entergy Corporation (NYSE:ETR):
Operates as an integrated energy company in the United States. Market cap of $11.60B. Dividend yield at 5.09%, payout ratio at 46.76%. According to ISS, the company has "low concern" in all corporate governance categories. The stock has lost 11.2% over the last year.

2. General Electric Co. (NYSE:GE):
Operates as a technology, service, and finance company worldwide. Market cap of $163.03B. Dividend yield at 3.90%, payout ratio at 42.54%. According to ISS, the company has "low concern" in all corporate governance categories. Might be undervalued at current levels, with a PEG ratio at 0.87, and P/FCF ratio at 10.35. The stock has lost 3.69% over the last year.

3. Intel Corporation (NASDAQ:INTC):
Engages in the design, manufacture, and sale of integrated circuits for computing and communications industries worldwide. Market cap of $115.21B. Dividend yield at 3.83%, payout ratio at 29.97%. According to ISS, the company has "low concern" in all corporate governance categories. The stock has had a good month, gaining 13.21%.

4. Sempra Energy (NYSE:SRE): Engages in the development of energy infrastructure, operation of utilities, and provision of energy-related products and services worldwide. Market cap of $12.30B. Dividend yield at 3.74%, payout ratio at 35.42%. According to ISS, the company has "low concern" in all corporate governance categories. The stock has lost 1.02% over the last year.

5. EI DuPont de Nemours & Co. (NYSE:DD):
Chemicals - Major Diversified Industry. Market cap of $41.60B. Dividend yield at 3.68%, payout ratio at 44.94%. According to ISS, the company has "low concern" in all corporate governance categories. The stock has gained 3.31% over the last year.

6. Safeway Inc. (NYSE:SWY):
Operates as a food and drug retailer in North America. Market cap of $5.79B. Dividend yield at 3.50%, payout ratio at 36.38%. According to ISS, the company has "low concern" in all corporate governance categories. The stock is a short squeeze candidate, with a short float at 9.47% (equivalent to 5.24 days of average volume). It's been a rough couple of days for the stock, losing 7.23% over the last week.

7. Pepsico, Inc. (NYSE:PEP):
Engages in the manufacture, marketing, and sale of foods, snacks, and carbonated and non-carbonated beverages worldwide. Market cap of $96.21B. Dividend yield at 3.39%, payout ratio at 49.11%. According to ISS, the company has "low concern" in all corporate governance categories. The stock has lost 6% over the last year.

8. Procter & Gamble Co. (NYSE:PG): Provides consumer packaged goods in the United States and internationally. Market cap of $173.18B. Dividend yield at 3.33%, payout ratio at 47.47%. According to ISS, the company has "low concern" in all corporate governance categories. The stock has gained 5.24% over the last year.

9. Chevron Corp. (NYSE:CVX):
Engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. Market cap of $188.82B. Dividend yield at 3.31%, payout ratio at 25.66%. According to ISS, the company has "low concern" in all corporate governance categories. The stock has gained 22.78% over the last year.

10. Illinois Tool Works Inc. (NYSE:ITW):
Manufactures a range of industrial products and equipment worldwide. Market cap of $21.45B. Dividend yield at 3.30%, payout ratio at 35.49%. According to ISS, the company has "low concern" in all corporate governance categories. The stock has lost 3.71% over the last year.

11. JPMorgan Chase & Co. (NYSE:JPM):
Provides various financial services worldwide. Market cap of $118.30B. Dividend yield at 3.29%, payout ratio at 13.26%. According to ISS, the company has "low concern" in all corporate governance categories. It's been a rough couple of days for the stock, losing 7.5% over the last week.

12. United Parcel Service, Inc. (NYSE:UPS):
Provides transportation, logistics, and financial services in the United States and internationally. Market cap of $63.10B. Dividend yield at 3.23%, payout ratio at 49.51%. According to ISS, the company has "low concern" in all corporate governance categories. The stock has lost 1.92% over the last year.

13. General Mills, Inc. (NYSE:GIS):
Manufactures and markets branded consumer foods worldwide. Market cap of $24.86B. Dividend yield at 3.17%, payout ratio at 40.56%. According to ISS, the company has "low concern" in all corporate governance categories. The stock has gained 8.25% over the last year.

14. Time Warner Inc. (NYSE:TWX):
Operates as a media and entertainment company in the United States and internationally. Market cap of $31.33B. Dividend yield at 3.13%, payout ratio at 35.96%. According to ISS, the company has "low concern" in all corporate governance categories. The stock has lost 1.32% over the last year.

15. Time Warner Cable Inc. (NYSE:TWC):
Operates as a cable operator in the United States. Market cap of $20.76B. Dividend yield at 3.01%, payout ratio at 41.56%. According to ISS, the company has "low concern" in all corporate governance categories. The stock has gained 28.35% over the last year.

*ISS risk ratings sourced from Yahoo! Finance, 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.