5 Dividend Stocks For The Next Decade Paying Over 3.5%

|
Includes: CTL, T, UL, VOD, WM
by: Bear Fight

As market prognosticators point to a “lost decade” for the U.S. economy, investors have already experienced their own lost decade in U.S. equities. While the 2000s ended with the tech wreck and an overbought stock market, the last 10 years of no price appreciation has helped valuation. Earnings and dividends of large-capitalization companies have grown over last decade creating opportunity for value investors. With the 10-year U.S. treasury below 2.0%, equity market investors can find yields in high-quality large-capitalization companies at relatively modest valuations.

(Click chart to expand)

When seeking out long-term dividend stock holdings I look for equities with strong and durable business models and strong margins at decent valuations. Strong EBITDA margins point to the value proposition of the company. Companies with EBITDA in the single digits point to low value add business models. Below is a list of five high-quality equities that investors should contemplate for their portfolios for the next decade.

Unilever PLC (NYSE:UL) – consumer products

Dividend Yield: 3.6%

EBITDA Margins: 15%

Price to Earnings: 16.9x

Market Capitalization: $61.2 billion

Waste Management, Inc. (NYSE:WM) – waste management services

Dividend Yield: 4.4%

EBITDA Margins: 25%

Price to Earnings: 15.9x

Market Capitalization: $15.1 billion

Vodafone Group Plc (NASDAQ:VOD) – wireless

Dividend Yield: 5.0%

EBITDA Margins: 31%

Price to Earnings: 13.1x

Market Capitalization: $90.0 billion

AT&T Inc. (NYSE:T) – telecom

Dividend Yield: 5.9%

EBITDA Margins: 31%

Price to Earnings: 15.2x

Market Capitalization: $178.8 billion

CenturyLink, Inc. (NYSE:CTL) – telecom

Dividend Yield: 7.9%

EBITDA Margins: 44%

Price to Earnings: 24.5x

Market Capitalization: $22.6 billion

Disclosure: I am long UL, WM, T.