7 Dividend-Yielding Stocks For The Next 5 Years

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 |  Includes: ACIIQ, CVC, LNCR, MXIM, NUE, WMB, WSO
by: Dividendinvestr

Just because a company pays dividends, it does not mean that stock is a good investment. In fact, companies often offer dividends in order to make up for low earnings expectations, slow growth or a risky patch. In other words, investors have to choose high-dividend yielding stocks carefully. One way to do this is to keep the focus on larger companies that have strong earnings growth estimates in addition to decent dividends. These companies will boost their dividends as their earnings grow at a high rate.

We developed a list of companies that fit our criteria. Specifically, the companies on this list have market caps over $2 billion, pay dividends over 3% and have EPS growth expectations of over 15% per annum on average for the next five years.

Watsco, Inc. (NYSE:WSO) is an electronics wholesale company with a $2.26 billion market cap. The company is currently priced at 21.73 times its forward earnings and offers a 3.62% dividend on a 87.50% payout ratio. WSO has EPS growth expectations of 17.68% per annum over the next five years. It recently traded at $68.46 a share.

Nucor Corp. (NYSE:NUE) is a steel and iron company with a $13.59 billion market cap. The company is currently priced at 13.93 times its forward earnings and offers a 3.40% dividend on a 73.60% payout ratio. NUE has EPS growth expectations of 24.93% per annum over the next five years. It recently traded at $42.90 a share.

Arch Coal, Inc. (ACI) is an industrial metals and minerals company with a $2.96 billion market cap. The company is currently priced at 5.84 times its forward earnings and offers a 3.14% dividend on a 60.80% payout ratio. ACI has EPS growth expectations of 32.96% per annum over the next five years. It recently traded at $14.01 a share.

Cablevision Systems Corp. (NYSE:CVC) is a CATV systems company with a $3.98 billion market cap. The company is currently priced at 11.04 times its forward earnings. Cablevision has a dividend yield of 4.21% and a 54.14% payout ratio. CVC has EPS growth expectations of 16.38% per annum over the next five years. It recently traded at $14.24 a share.

Maxim Integrated Products, Inc. (NASDAQ:MXIM) is a broad line semiconductor company with a $8.07 billion market cap. The company is currently priced at 15.73 times its forward earnings and offers a 3.18% dividend on a 49.63% payout ratio. MXIM has EPS growth expectations of 17.33% per annum over the next five years. It recently traded at $27.68 a share.

Lincare Holdings, Inc. (NASDAQ:LNCR) is a home healthcare company with a $2.28 billion market cap. The company is currently priced at 11.38 times its forward earnings and offers a 3.11% dividend on a 41.71% payout ratio. LNCR has EPS growth expectations of 15.67% per annum over the next five years. It recently traded at $25.71 a share.

Williams Companies, Inc. (NYSE:WMB) is an oil and gas pipelines company with a $16.94 billion market cap. The company is currently priced at 18.66 times its forward earnings and offers a 3.48% dividend on a 37.77% payout ratio. WMB has EPS growth expectations of 19.50% per annum over the next five years. It recently traded at $28.74 a share.

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