Basic material dividend stocks with low betas and large market capitalization originally published at "long-term-investments.blogspot.com". When I buy stocks I ever take a look at the risk fundamentals of a company. Beside the market capitalization, the beta ratio is a meaningful ratio. The ratio shows investors how volatile a stock is compared to the overall market. A beta value of 1.2 means: The stock has a 20 percent higher volatility than the market. I use this tool to identify the underlying risks of a business model. For sure, it's not perfect but a good first step to evaluate the risk situation.
Today I like to run my screen for the safest basic material stocks. These are my criteria:
- Market Capitalization over USD 10 billion
- Beta ratio below 1
Linked are the 20 best yielding stocks. 14 of them have a current buy or better recommendation and five are high-yields. Oil and gas companies are dominating the results.
Here is the full table with some fundamentals:
Take a closer look at the full list. The average P/E ratio amounts to 21.38 and forward P/E ratio is 15.96. The dividend yield has a value of 3.92 percent. Price to book ratio is 3.22 and price to sales ratio 2.27. The operating margin amounts to 16.97 percent and the beta ratio is 0.66. Stocks from the list have an average debt to equity ratio of 1.35.
Related stock ticker symbols:
ETP, EC, KMP, TOT, OKS, NEM, EPD, ETE, PAA, SE, MMP, ABX, SQM, CVX, ENB, XOM, SNP, PX, SYT, GG