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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 (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.

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