Best Dividend Paying Stocks From The S&P 500 Index Researched By "long-term-investments.blogspot.com". The Standard & Poor's 500 Index is of huge importance for investors and the capital market. The index is one of the most used instruments for the asset allocation and reflects the mood at the market. The index has over USD 5.58 trillion benchmarked, with index assets comprising approximately USD 1.31 trillion of this total. The index includes 500 leading companies in leading industries of the U.S. economy, capturing 75 percent coverage of U.S. equities.
The index also captures the best dividend paying companies in the world. From 500 stocks, 401 pay great dividends and 132 yielding over three percent. I made a small screen of the best dividend paying stocks within the index. I selected stocks with a yield over two percent, an earnings per share growth for the next five years of more than ten percent yearly and an operating margin above 15 percent. In order to get companies with low debt and high potential for growth or dividend hikes, the debt to equity ratio should be under 0.5. Seventeen companies fulfilled my criteria of which thirteen have a buy or better rating.
Here is the full table with some fundamentals:
Take a closer look at the full table. The average price to earnings ratio (P/E ratio) amounts to 19.83 and forward P/E ratio is 12.89. The dividend yield has a value of 2.86 percent. Price to book ratio is 2.90 and price to sales ratio 3.12. The operating margin amounts to 28.47 percent and the beta ratio is 1.15. The average stock has a debt to equity ratio of 0.24.
Related stock ticker symbols:
PBCT, PAYX, INTC, CME, ADI, AFL, NEM, ESV, XLNX, ITW, MMM, OXY, TIE, NDAQ, TROW, TIF, COH