You should look into large-cap high dividend stocks if you are looking to make more from your investments. These stocks have high dividend yields and relatively low P/E. Their dividend yields are generally around 3.4% or higher. Below are seven stocks that have a low P/E and high dividend yields.
Microsoft
Microsoft is a stock that offers large-cap growth and high dividends. Microsoft has a long history of increasing dividends. Over the last five years, its earnings per share have grown an average of 24% per annum. It also has a low payout percentage, which is a good thing for dividend stocks. In addition, it's expected to increase its dividend by 10% a year over the next five years.
Microsoft pays dividends each three months and four per year. Although the date of the dividend payment varies from month-to-month, it is usually within the third week. This date is important for prospective investors, as they have to complete their investment BEFORE the ex-dividend date.
Johnson & Johnson
Johnson & Johnson, a large cap stock that pays a high dividend, is a good choice. Johnson & Johnson has a high dividend yield, at 2.4%, which is above the S&P 500 average. It also has a solid business model and a strong brand name. It has been a leader for years in health care. The company's shares are also highly appreciated each year. Consider another investment option if your goal is to find a fast-growing stock.
Johnson & Johnson continues to bring new products to market and is now a leader across a variety of health care areas. The company's current market cap is $435billion and it generates $98billion in annual revenues. This makes it a huge-cap stock, with a market value exceeding $200 billion. It just reported its second quarter financial results and exceeded analysts' expectations. Its revenue increased 3% year-over-year to $24 billion and its adjusted EPS jumped from $2.59 to $2.68, which is a record high.
Lowe's
Lowe's stock may be a great choice for long-term income investors who are looking for a strong stock and a history of solid dividends. The company is known for its dividend growth, low payout ratio and healthy earnings growth. Lowe's increased its payout 60 times in a row. The company can fund its dividend growth using low levels of debt. It can also execute share buybacks and invest in future earnings growth.
Lowe's also offers the Stock Advantage Direct Stock Purchase Program. This program allows investors to purchase Lowe’s common stocks and allows existing investors to increase their holdings. Participants can also opt to automatically reinvest their dividends.
Target
Target is a great dividend stock for investors looking to invest in large-cap retail stocks. While the company is still undervalued in today's market, its growth prospects are very promising. The dividend has been increasing for 50 years. This trend is expected to continue in the future. Its profits have also grown significantly.
The company's strategy is clear: It sells high quality merchandise at discounted prices through digital channels. Target Management believes that Target stores have the potential to be competitive and make it a profitable omnichannel retailer chain. Target has made investments in supply chain logistics to improve efficiency and renovated its stores.
FAQ
What is security?
Security is an asset that generates income. Most common security type is shares in companies.
A company may issue different types of securities such as bonds, preferred stocks, and common stocks.
The earnings per shares (EPS) or dividends paid by a company affect the value of a stock.
When you buy a share, you own part of the business and have a claim on future profits. If the company pays you a dividend, it will pay you money.
You can always sell your shares.
Why is it important to have marketable securities?
An investment company's main goal is to generate income through investments. It does this through investing its assets in various financial instruments such bonds, stocks, and other securities. These securities offer investors attractive characteristics. They are considered safe because they are backed 100% by the issuer's faith and credit, they pay dividends or interest, offer growth potential, or they have tax advantages.
It is important to know whether a security is "marketable". This refers to the ease with which the security is traded on the stock market. You cannot buy and sell securities that aren't marketable freely. Instead, you must have them purchased through a broker who charges a commission.
Marketable securities include government and corporate bonds, preferred stocks, common stocks, convertible debentures, unit trusts, real estate investment trusts, money market funds, and exchange-traded funds.
These securities are preferred by investment companies as they offer higher returns than more risky securities such as equities (shares).
What's the difference among marketable and unmarketable securities, exactly?
Non-marketable securities are less liquid, have lower trading volumes and incur higher transaction costs. Marketable securities are traded on exchanges, and have higher liquidity and trading volumes. These securities offer better price discovery as they can be traded at all times. This rule is not perfect. There are however many exceptions. For example, some mutual funds are only open to institutional investors and therefore do not trade on public markets.
Non-marketable securities tend to be riskier than marketable ones. They usually have lower yields and require larger initial capital deposits. Marketable securities tend to be safer and easier than non-marketable securities.
For example, a bond issued in large numbers is more likely to be repaid than a bond issued in small quantities. The reason for this is that the former might have a strong balance, while those issued by smaller businesses may not.
Because they are able to earn greater portfolio returns, investment firms prefer to hold marketable security.
What is the main difference between the stock exchange and the securities marketplace?
The securities market refers to the entire set of companies listed on an exchange for trading shares. This includes stocks, bonds, options, futures contracts, and other financial instruments. There are two types of stock markets: primary and secondary. Large exchanges like the NYSE (New York Stock Exchange), or NASDAQ (National Association of Securities Dealers Automated Quotations), are primary stock markets. Secondary stock markets are smaller exchanges where investors trade privately. These include OTC Bulletin Board Over-the-Counter and Pink Sheets as well as the Nasdaq smallCap Market.
Stock markets are important because it allows people to buy and sell shares in businesses. It is the share price that determines their value. When a company goes public, it issues new shares to the general public. Dividends are received by investors who purchase newly issued shares. Dividends are payments made by a corporation to shareholders.
In addition to providing a place for buyers and sellers, stock markets also serve as a tool for corporate governance. Boards of directors are elected by shareholders to oversee management. Boards ensure that managers use ethical business practices. In the event that a board fails to carry out this function, government may intervene and replace the board.
How are share prices established?
The share price is set by investors who are looking for a return on investment. They want to make a profit from the company. They purchase shares at a specific price. If the share price increases, the investor makes more money. If the share value falls, the investor loses his money.
The main aim of an investor is to make as much money as possible. This is why they invest into companies. They are able to make lots of cash.
What is a mutual fund?
Mutual funds are pools or money that is invested in securities. They offer diversification by allowing all types and investments to be included in the pool. This helps reduce risk.
Professional managers oversee the investment decisions of mutual funds. Some funds offer investors the ability to manage their own portfolios.
Mutual funds are often preferred over individual stocks as they are easier to comprehend and less risky.
Statistics
- Individuals with very limited financial experience are either terrified by horror stories of average investors losing 50% of their portfolio value or are beguiled by "hot tips" that bear the promise of huge rewards but seldom pay off. (investopedia.com)
- Ratchet down that 10% if you don't yet have a healthy emergency fund and 10% to 15% of your income funneled into a retirement savings account. (nerdwallet.com)
- Our focus on Main Street investors reflects the fact that American households own $38 trillion worth of equities, more than 59 percent of the U.S. equity market either directly or indirectly through mutual funds, retirement accounts, and other investments. (sec.gov)
- "If all of your money's in one stock, you could potentially lose 50% of it overnight," Moore says. (nerdwallet.com)
External Links
How To
What are the best ways to invest in bonds?
You will need to purchase a bond investment fund. They pay you back at regular intervals, despite the low interest rates. These interest rates are low, but you can make money with them over time.
There are many ways you can invest in bonds.
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Directly buying individual bonds
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Buy shares from a bond-fund fund
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Investing with a broker or bank
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Investing through financial institutions
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Investing with a pension plan
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Invest directly with a stockbroker
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Investing via a mutual fund
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Investing through a unit trust.
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Investing via a life policy
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Investing via a private equity fund
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Investing with an index-linked mutual fund
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Investing via a hedge fund