Seeking Alpha
Profile| Send Message| ()  

Large cap dividend stocks offer investors a combination of liquidity and income. Each of the stocks on this list has a dividend yield that meets or exceeds 10-year treasury yields. Even better, each has a history of growing dividends and shareholder equity over the past 10 fiscal years. Most of them are well known, household names.

Chevron Corporation (CVX) recently traded at $100.53 per share. At this price level, the stock has a 3.2% dividend yield. For 10 out of the past 10 fiscal years, a share of CVX paid a total of $19.74 in dividends. Of these dividend payments, a total of $12.30 was paid in the last five years.

CVX shareholders have enjoyed a 13.6% change in share price over the past year. Shares of this large-cap stock trade at a price-to-book ratio of 1.7, a price-to-earnings multiple of 7.5, and a price-to-sales multiple of 0.8 (trailing twelve months). Over the past decade shareholders enjoyed a 20.2% average annual return on equity.

Kraft Foods Inc. (KFT) recently traded at $36.1599 per share. At this price level, the stock has a 3.2% dividend yield. For 10 out of the past 10 fiscal years, a share of KFT paid a total of $8.56 in dividends. Of these dividend payments, a total of $5.44 was paid in the last five years.

KFT shareholders have seen a 17.8% change in share price over the past year. Shares of this large-cap stock trade at a price-to-book ratio of 1.7, a price-to-earnings multiple of 19.8, and a price-to-sales multiple of 1.2 (trailing twelve months). Over the past decade shareholders enjoyed a 11.2% average annual return on equity.

Northrop Grumman Corporation (NOC) recently traded at $55.15 per share. At this price level, the stock has a 3.6% dividend yield. For 10 out of the past 10 fiscal years, a share of NOC paid a total of $12.04 in dividends.

NOC shareholders have sustained a -3.0% change in share price over the past year. Shares of this large-cap stock trade at a price-to-book ratio of 1.2, a price-to-earnings multiple of 9.0, and a price-to-sales multiple of 0.7 (trailing twelve months). Over the past decade shareholders enjoyed a 6.7% average annual return on equity.

Raytheon Co. (RTN) recently traded at $44.92 per share. At this price level, the stock has a 3.8% dividend yield. For 10 out of the past 10 fiscal years, a share of RTN paid a total of $9.92 in dividends. Of these dividend payments, a total of $5.84 was paid in the last five years.

RTN shareholders have seen a 0.5% change in share price over the past year. Shares of this large cap stock trade at a price-to-book ratio of 1.5, a price-to-earnings multiple of 8.9, and a price-to-sales multiple of 0.6 (trailing twelve months). Over the past decade shareholders enjoyed a 8.7% average annual return on equity.

Waste Management, Inc. (WM) recently traded at $31.62 per share. At this price level, the stock has a 4.3% dividend yield. For 10 out of the past 10 fiscal years, a share of WM paid a total of $6.92 in dividends. Of these dividend payments, a total of $5.34 was paid in the last five years.

WM shareholders have endured a -10.8% change in share price over the past year. Shares of this large-cap stock trade at a price-to-book ratio of 2.5, a price-to-earnings multiple of 15.4, and a price-to-sales multiple of 1.1 (trailing twelve months). Over the past decade shareholders enjoyed a 16.0% average annual return on equity.

All the companies on this list have demonstrated commitment to shareholder wealth (ROE) and shareholder income (dividend history) over the past decade. Moreover, using low price-to-earnings ratios as a guide, RTN, NOC, and CVX appear attractively priced and warrant additional research at current prices.


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

Disclaimer: This article was written to provide investor information and education, and should not be construed as a guarantee or investment advice. I have no idea what your individual risk, time-horizon, and tax circumstances are: please seek the personal advice of a financial planner. This article uses third-party data and may contain approximations and errors. Please check estimates and data for yourself before investing. I repeat: this research does NOT constitute a guarantee.

Source: 5 Solid Large-Cap Dividend Stocks