High Yields from the S&P 500 and the best buy ratings originally published at "long-term-investments.blogspot.com". It's good to have stocks with dividends. Dividends give you a passive income and improve your quality of life. Some of you don't have enough money to live off dividends and they try to close the gap by choosing only High-Yields.
The higher the yield of a stock, the less capital you need for an acceptable return. But High-Yields often have the problem that they are not sustainable, especially when the market capitalization is low and the debt high.
We've seen this problem with Pitney Bowes, a very popular Dividend Aristocrat who yielded for months over 10 percent until they decided to reduce the dividend by a half. For sure, they still pay a good dividend but your passive income is now significant lower.
Today I like to show you the highest yielding stocks from the S&P 500 with the best buy ratings. Only 13 companies survived the strong market gain since the beginning of the year. Last year, the number of High Yields within the popular index was over 20!
Below the top results are many telecom service companies as well as electric utilities. Five of the results have a current buy or better rating.
Here is the full table with some fundamentals:
Take a closer look at the full list. The average P/E ratio amounts to 19.50 and forward P/E ratio is 13.43. The dividend yield has a value of 7.20 percent. Price to book ratio is 2.18 and price to sales ratio 1.41. The operating margin amounts to 18.73 percent and the beta ratio is 0.85. Stocks from the list have an average debt to equity ratio of 2.0.
Related stock ticker symbols:
GT, WIN, FTR, CTL, FE, GRMN, POM, RAI, PBI, TE, PPL, LO, T