We like companies that have little or no debt because these companies tend to have long-term competitive advantage. The lower the company's debt ratio, the more flexibility the company has during the poor economic conditions.
Below we compiled a list of six dividend stocks that have dividend yields higher than 4%, P/E ratios of lower than 20, beta ratios of lower than 0.7 and total debt/equity ratios of lower than 0.8. We have obtained market data from Finviz and MSN Money.
Stock | Market Cap | Sector | Dividend Yield | P/E | Beta | Total Debt/Equity |
ALLETE (ALE) | 1.5 | Utilities | 4.6% | 17.8 | 0.66 | 0.8 |
Bristol-Myers Squibb (BMY) | 56.1 | Healthcare | 4.1% | 14.9 | 0.46 | 0.3 |
Eli Lilly (LLY) | 48.3 | Healthcare | 4.7% | 10.8 | 0.68 | 0.4 |
TC Pipelines (TCP) | 2.2 | Basic Materials | 7.5% | 14.3 | 0.45 | 0.5 |
Reynolds American (RAI) | 23.3 | Consumer Goods | 5.8% | 17.9 | 0.57 | 0.6 |
Spectra Energy Partners (SEP) | 3.1 | Basic Materials | 6.0% | 19.5 | 0.19 | 0.4 |
ALLETE is an electric power generation company operating in the United States. ALE recently traded at $39.92 and has a 4.6% dividend yield. ALE gained 4.4% during the past 12 months. The stock has a market cap of $1.5 billion, P/E ratio of 17.8 and Total Debt/Equity ratio of 0.78. ALE also had an EPS growth rate of -0.9% during the last five years.
Bristol-Myers Squibb is a biopharmaceutical company operating worldwide. BMY recently traded at $32.93 and has a 4.1% dividend yield. BMY gained 20.5% during the past 12 months. The stock has a market cap of $56.1 billion, P/E ratio of 14.9 and Total Debt/Equity ratio of 0.33. BMY also had an EPS growth rate of 28.4% during the last five years.
Eli Lilly provides pharmaceutical products worldwide. Eli Lilly recently reported some news with a strong Q1 with EPS of $0.92 versus consensus estimates of $0.78. LLY recently traded at $41.17 and has a 4.7% dividend yield. LLY gained 13.8% during the past 12 months. The stock has a market cap of $48.3 billion, P/E ratio of 10.8 and Total Debt/Equity ratio of 0.36. LLY also had an EPS growth rate of 9.8% during the last five years.
TC PipeLines transports natural gas in the United States and Canada. TCP recently traded at $40.89 and has a 7.5% dividend yield. TCP lost 7.6% during the past 12 months. The stock has a market cap of $2.2 billion, P/E ratio of 14.3 and Total Debt/Equity ratio of 0.53. TCP also had an EPS growth rate of 4.8% during the last five years.
Reynolds American manufactures and sells cigarette and other tobacco products in the United States. RAI recently traded at $40.27 and has a 5.8% dividend yield. RAI gained 14.6% during the past 12 months. The stock has a market cap of $23.3 billion, P/E ratio of 17.9 and Total Debt/Equity ratio of 0.61. RAI also had an EPS growth rate of 4.6% during the last five years.
Spectra Energy Partners provides transportation of natural gas in the United States. SEP recently traded at $31.56 and has a 6% dividend yield. SEP lost 1.1% during the past 12 months. The stock has a market cap of $3.1 billion, P/E ratio of 19.5 and Total Debt/Equity ratio of 0.42. SEP also had an EPS growth rate of 1.3% during the last five years.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
