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Services companies can be somewhat volatile – after all, when times get tough, people find more ways to do things on their own, like filing their own taxes, and they make do with what they have – but there are a few companies that stand out. These companies are not nearly as volatile as their contemporaries (betas under 1.5, consistent EPS growth) and they pay high dividends with a low payout ratio (under 30%), making them good additions to any portfolio.

Omnicom Group, Inc. (NYSE:OMC) is an advertising agency with a $12.15 billion market cap. It has a forward P/E of 12.07 and pays a 2.27% dividend yield on a 29.02% payout ratio. The company’s EPS is expected to grow 9.28% next year and 10.51% over the next five years. OMC has a beta of 1.21 and recently traded at $44.04 a share. Jean-Marie Eveillard’s First Eagle Investment Management had $270.64 million in OMC after uppings its stake in the company by +5% during the third quarter.

Staples, Inc. (NASDAQ:SPLS) is a specialty retail chain with a $10.15 billion market cap. It has a forward P/E of 9.74 and pays a 2.76% dividend yield on a 28.03% payout ratio. The company’s EPS is expected to grow 8.76% next year and 11.95% over the next five years. SPLS has a beta of 0.87 and recently traded at $14.51 a share. D.E. Shaw’s D E Shaw was a fan of SPLS during the third quarter. The fund increased its stake in the company by +114%, bringing its total position in the company to $29.63 million at the end of September.

Walgreen Co. (NYSE:WAG) is a drug store chain with a $28.90 billion market cap. It has a forward P/E of 10.85 and pays a 2.72% dividend yield on a 26.61% payout ratio. The company’s EPS is expected to grow 11.72% next year and 10.06% over the next five years. WAG has a beta of 0.97 and recently traded at $33.08 a share. D.E. Shaw’s D E Shaw was also a fan of WAG during the third quarter. The fund increased its stake in the company by +6336%, bringing its total position in the company to $66.68 million at the end of September.

Target Corp. (NYSE:TGT) is a discount department store chain with a $32.87 billion market cap. It has a forward P/E of 11.38 and pays a 2.45% dividend yield on a 25.21% payout ratio. The company’s EPS is expected to grow 0.70% next year and 12.40% over the next five years. TGT has a beta of 0.88 and recently traded at $48.95 a share. Jonathon Jacobson’s Highfields Capital Management had $291.79 million in TGT at the end of September after increasing its stake in the company by +98% during the third quarter.

CSX Corp. (NYSE:CSX) is a railroad company with a $23.82 billion market cap. It has a forward P/E of 11.82 and pays a 2.12% dividend yield on a 25.04% payout ratio. The company’s EPS is expected to grow 14.29% next year and 9.50% over the next five years. CSX has a beta of 1.28 and recently traded at $22.69 a share. Both Jeffrey Vinik’s Vinik Asset Management and Wayne Cooperman’s Cobalt Capital Management had significant positions in CSX at the end of the third quarter.

Kohl’s Corp. (NYSE:KSS) is a department store chain with a $11.79 billion market cap. It has a forward P/E of 9.05 and pays a 2.15% dividend yield on a 22.70% payout ratio. The company’s EPS is expected to grow 16.29% next year and 13.83% over the next five years. KSS has a beta of 0.85 and recently traded at $46.51 a share. Lee Ainslie’s Maverick Capital initiated a new position in KSS worth $79.45 million during the third quarter. Steve Cohen’s SAC Capital Advisors was also a fan of the company.

Viacom, Inc. (VIA.B) is a CATV systems company with a $26.20 billion market cap. It has a forward P/E of 9.36 and pays a 2.11% dividend yield on a 21.95% payout ratio. The company’s EPS is expected to grow 18.18% next year and 15.36% over the next five years. VIAB has a beta of 1.29 and recently traded at $47.45 a share. Eric Mindich’s Eton Park Capital had $800.46 million in VIAB after increasing its position in the company by +94% during the third quarter.

Source: 7 Large Cap Services Companies With High Yields And Low Payouts