12 S&P 500 Dividend Stocks With High Cash Relative To Expenses

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 |  Includes: ADI, AMGN, BEN, CSCO, GLW, GS, KLAC, LLTC, LUK, MSFT, SCHW, XLNX
by: Kapitall

When comparing dividend stocks, one of the most important considerations is liquidity. If a company has few sources of liquidity, its dividend may get cut if the company experiences a dip in profitability. Highly liquid companies are thought to pay more reliable dividends.

We ran a screen on the S&P 500 for dividend stocks that have high cash relative to their operating expenses. We calculated the average quarterly operating expense over the last year and found companies with high cash relative to their expenses, with at least four quarters of expenses worth of cash.

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 point for your own analysis.

List sorted by market cap.

1. Microsoft Corporation (NASDAQ:MSFT): Develops, licenses, and supports a range of software products and services for various computing devices worldwide. Market cap of $218.97B. Dividend yield at 3.07%, payout ratio at 24.37%. Average quarterly operating expense over the last five quarters at $10,590.2M, vs. most recent cash and short term investments at $57,403M, implies a Cash / Avg. Operating Expense ratio at 5.42. The stock has lost 4.79% over the last year.

2. Cisco Systems, Inc. (NASDAQ:CSCO): Designs, manufactures, and sells Internet protocol (NYSE:IP)-based networking and other products related to the communications and information technology industry worldwide. Market cap of $98.97B. Dividend yield at 1.30%, payout ratio at 15.46%. Average quarterly operating expense over the last five quarters at $8,918M, vs. most recent cash and short term investments at $44,388M, implies a Cash / Avg. Operating Expense ratio at 4.98. The stock has lost 4.66% over the last year.

3. Amgen Inc. (NASDAQ:AMGN): Develops, manufactures, and markets human therapeutics based on advances in cellular and molecular biology for grievous illnesses primarily in the United States, Europe, and Canada. Market cap of $53.61B. Dividend yield at 2.35%, payout ratio at 6.53%. Average quarterly operating expense over the last five quarters at $2,713.8M, vs. most recent cash and short term investments at $17,676M, implies a Cash / Avg. Operating Expense ratio at 6.51. The stock has had a couple of great days, gaining 6.49% over the last week.

4. The Goldman Sachs Group, Inc. (NYSE:GS): Provides investment banking, securities, and investment management services to corporations, financial institutions, governments, and high-net-worth individuals worldwide. Market cap of $44.79B. Dividend yield at 1.54%, payout ratio at 20.80%. Average quarterly operating expense over the last five quarters at $7,731M, vs. most recent cash and short term investments at $44,200M, implies a Cash / Avg. Operating Expense ratio at 5.72. The stock has lost 45.29% over the last year.

5. Franklin Resources Inc. (NYSE:BEN): Provides its services to individuals, institutions, pension plans, trusts, and partnerships. Market cap of $20.71B. Dividend yield at 1.13%, payout ratio at 11.53%. Average quarterly operating expense over the last five quarters at $1,099.92M, vs. most recent cash and short term investments at $6,701.75M, implies a Cash / Avg. Operating Expense ratio at 6.09. The stock has lost 12% over the last year.

6. Corning Inc. (NYSE:GLW): Manufactures and processes specialty glass and ceramics products worldwide. Market cap of $19.77B. Dividend yield at 2.38%, payout ratio at 9.33%. Average quarterly operating expense over the last five quarters at $1,392.4M, vs. most recent cash and short term investments at $6,421M, implies a Cash / Avg. Operating Expense ratio at 4.61. The stock has performed poorly over the last month, losing 16.13%.

7. The Charles Schwab Corporation (NYSE:SCHW): Provides securities brokerage, banking, and related financial services to individuals and institutional clients. Market cap of $14.39B. Dividend yield at 2.12%, payout ratio at 35.49%. Average quarterly operating expense over the last five quarters at $840M, vs. most recent cash and short term investments at $6,376M, implies a Cash / Avg. Operating Expense ratio at 7.59. The stock has lost 32.07% over the last year.

8. Analog Devices Inc. (NASDAQ:ADI): Engages in the design, manufacture, and marketing of analog, mixed-signal, and digital signal processing integrated circuits used in industrial, communication, computer, and consumer applications. Market cap of $10.51B. Dividend yield at 2.83%, payout ratio at 32.66%. Average quarterly operating expense over the last five quarters at $481.11M, vs. most recent cash and short term investments at $3,592.46M, implies a Cash / Avg. Operating Expense ratio at 7.47. The stock has lost 4.57% over the last year.

9. Xilinx Inc. (NASDAQ:XLNX): Designs, develops, and markets programmable platforms in North America, the Asia Pacific, Europe, and Japan. Market cap of $8.39B. Dividend yield at 2.38%, payout ratio at 31.03%. Average quarterly operating expense over the last five quarters at $404.15M, vs. most recent cash and short term investments at $1,807.55M, implies a Cash / Avg. Operating Expense ratio at 4.47. The stock has gained 15.12% over the last year.

10. KLA-Tencor Corporation (NASDAQ:KLAC): Engages in the design, manufacture, and marketing of process control and yield management solutions for the semiconductor and related nanoelectronics industries. Market cap of $7.97B. Dividend yield at 2.93%, payout ratio at 22.12%. Average quarterly operating expense over the last five quarters at $511.41M, vs. most recent cash and short term investments at $2,100.15M, implies a Cash / Avg. Operating Expense ratio at 4.11. The stock has gained 24.09% over the last year.

11. Linear Technology Corp. (NASDAQ:LLTC): Designs, manufactures, and markets a line of linear integrated circuits. Market cap of $6.79B. Dividend yield at 3.22%, payout ratio at 39.08%. Average quarterly operating expense over the last five quarters at $178.64M, vs. most recent cash and short term investments at $967.67M, implies a Cash / Avg. Operating Expense ratio at 5.42. The stock has lost 12.1% over the last year.

12. Leucadia National Corp. (NYSE:LUK): Engages in manufacturing, telecommunications, land based contract oil and gas drilling, property management and services, gaming entertainment, real estate activities, medical product development, and winery operations in the United States. Market cap of $5.60B. Dividend yield at 1.09%, payout ratio at 3.86%. Average quarterly operating expense over the last five quarters at $237.32M, vs. most recent cash and short term investments at $1,117.24M, implies a Cash / Avg. Operating Expense ratio at 4.71. The stock has lost 21.46% over the last year.

*Accounting data sourced from Google 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.