6 High-Dividend, Low-Debt Stocks For Conservative Investors

|
Includes: ALE, BMY, LLY, RAI, SEP, TCP
by: Dividendinvestr

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
(Billion $)

Sector

Dividend Yield

P/E

Beta

Total Debt/Equity

ALLETE (NYSE:ALE)

1.5

Utilities

4.6%

17.8

0.66

0.8

Bristol-Myers Squibb (NYSE:BMY)

56.1

Healthcare

4.1%

14.9

0.46

0.3

Eli Lilly (NYSE:LLY)

48.3

Healthcare

4.7%

10.8

0.68

0.4

TC Pipelines (NYSE:TCP)

2.2

Basic Materials

7.5%

14.3

0.45

0.5

Reynolds American (NYSE:RAI)

23.3

Consumer Goods

5.8%

17.9

0.57

0.6

Spectra Energy Partners (NYSE:SEP)

3.1

Basic Materials

6.0%

19.5

0.19

0.4

Click to enlarge

Click to enlarge

Click to enlarge

Click to enlarge

Click to enlarge

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.

Click to enlarge

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.

Click to enlarge

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.

Click to enlarge

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.

Click to enlarge

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.

Click to enlarge

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.

Click to enlarge

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