{"id":1552,"date":"2023-02-13T14:00:51","date_gmt":"2023-02-13T14:00:51","guid":{"rendered":"https:\/\/tradersontrend.com\/?p=1552"},"modified":"2023-02-13T14:00:51","modified_gmt":"2023-02-13T14:00:51","slug":"dividend-yields-higher-than-sp-500-average-check-these-stocks-out","status":"publish","type":"post","link":"https:\/\/tradersontrend.com\/h\/2023\/02\/13\/dividend-yields-higher-than-sp-500-average-check-these-stocks-out\/","title":{"rendered":"Dividend Yields: Outperforming S&#038;P 500 With These Stocks"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"1552\" class=\"elementor elementor-1552\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-177a9366 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"177a9366\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-52b8c502\" data-id=\"52b8c502\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-ebe24 elementor-widget elementor-widget-text-editor\" data-id=\"ebe24\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.21.0 - 26-05-2024 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p>And whenever a stock falls massively, it can be given some second looks, especially if the underlying company&#8217;s present dividend yields are solid and sustainable.<\/p><p>Consider what recently occurred with VF Corp. (<a href=\"https:\/\/www.google.com\/finance\/quote\/VFC:NYSE\">VFC<\/a>).<\/p><p>VFC is a clothing and footwear corporation best known for its brands Vans, The North Face, Timberland, and Supreme. <br \/><br \/>It is also a member of the <a href=\"https:\/\/www.investopedia.com\/terms\/s\/sp-dividend-aristocrats.asp\">S&amp;P 500 Dividend Aristocrats<\/a>, which is an index of S&amp;P 500 businesses that have increased their dividends for at least 25 years. <br \/><br \/>This group is usually regarded as the group of the greatest dividend stocks on Wall Street.<br \/><br \/><strong><span style=\"font-size: 24.5px; font-family: inherit;\">But is it Sustainable<br \/><br \/><\/span><\/strong><span style=\"font-family: inherit;\">For the past 50 years, VF Corp. has increased its dividend every year but that streak, as well as the company&#8217;s participation in the Dividend Aristocrats, is now in jeopardy. <br \/><br \/>VFC lowered its quarterly dividend by 41% to 30 cents per share, down from 51 cents.<\/span><\/p><p>Prior to the decrease, VFC stock had one of the highest dividend yields in the S&amp;P 500, at 7.1%. <br \/><br \/>The dividend yield on VFC stock is projected to be 4.2% at the current quarterly rate of 30 cents per share.<\/p><p>By today&#8217;s market standards, VFC&#8217;s dividend yield of 4.2% remains exceptionally appealing. <br \/><br \/>However, the previous yield was so great that it was clearly unsustainable. <br \/><br \/>After all, VFC&#8217;s dividend yield surpassed 7% in the first place because the company lost more than half its value in the previous year.<\/p><p>So, yes, equities with the greatest dividend yields can occasionally be fool&#8217;s gold. <br \/><br \/>With that caution out of the way, we&#8217;re delighted to announce that the stocks in the S&amp;P 500 with the highest dividend yields look promising in terms of distributions.<\/p><p>From oil and gas businesses flush with cash as a result of high oil prices to a tobacco company and a telecommunications giant, the following stocks have the highest dividend yields in the S&amp;P 500 &#8211; and appear to have the resources to maintain them.<br \/><br \/><strong><span style=\"font-size: 24.5px; font-family: inherit;\">Verizon Communications, Inc.<br \/><br \/><\/span><\/strong><span style=\"font-family: inherit;\">Verizon Communications (<\/span><a style=\"font-family: inherit;\" href=\"https:\/\/www.google.com\/finance\/quote\/VZ:NYSE\">VZ<\/a><span style=\"font-family: inherit;\">) is well-known for paying out consistent and large dividends. <br \/><br \/>As the sole telco in the Dow Jones Industrial Average, attracts a lot of attention from institutional investors searching for equity income.<\/span><\/p><p>True, VZ has one of the highest dividend yields in the benchmark index, owing in part to a 24% drop in the last 52 weeks. <br \/><br \/>However, at 6.4%, VZ&#8217;s dividend yield is not out of step with previous levels. <br \/><br \/>The three-year average dividend yield on the stock is about 5%.<\/p><p>Long-term investors looking for the greatest dividend growth stocks will appreciate the fact that this telco is also a consistent dividend grower. <br \/><br \/>VZ has increased its payment every year for the past 18 years. And the dividend hikes should continue.<\/p><p>What evidence do we have? Verizon paid out $10.8 billion in dividends during the fiscal year that ended December 31, 2022, while still generating $6.2 billion in free cash flow (the cash remaining after expenses, capital expenditures, and financial commitments are met).<\/p><p>However, wall Street is divided on VZ stock&#8217;s chances of outperforming the market over the next 12 to 18 months. <br \/><br \/>According to S&amp;P Global Market Intelligence, the consensus advice among analysts is to hold.<br \/><br \/><strong><span style=\"font-size: 24.5px; font-family: inherit;\">The Altria Group<br \/><br \/><\/span><\/strong><span style=\"font-family: inherit;\">The tobacco industry in the United States is not experiencing considerable expansion. <br \/><br \/>As a result, Altria Group (<\/span><a style=\"font-family: inherit;\" href=\"https:\/\/www.google.com\/finance\/quote\/MO:NYSE\">MO<\/a><span style=\"font-family: inherit;\">), whose brands include Marlboro cigarettes and Copenhagen dipping tobacco, must satisfy shareholders with significant and consistent dividends.<\/span><\/p><p>When it comes to Altria&#8217;s standing as a defensive stock, dividends are only part of the tale. <br \/><br \/>When circumstances are rough, sales of its addictive items tend to hold up well. <br \/><br \/>MO stock also trades with substantially lower volatility than the larger market.<\/p><p>MO is a wonderful location to hide in a terrible market because of these features, as well as a dividend yield of more than 8% and 13 consecutive years of dividend increases.<\/p><p>Indeed, MO&#8217;s total return (price appreciation + dividends) over the last 52 weeks is 0%. <br \/><br \/>True, investors did not profit, but they also did not lose money. <br \/><br \/>In comparison, the S&amp;P 500 returned -5.6% over the same time period.<\/p><p>Analysts do not expect Altria to continue outperforming the market in the next 12 to 18 months. Their unanimous consensus is to hold.<br \/><br \/><strong><span style=\"font-size: 24.5px; font-family: inherit;\">Devon Power<br \/><br \/><\/span><\/strong><span style=\"font-family: inherit;\">Devon Energy (<\/span><a style=\"font-family: inherit;\" href=\"https:\/\/www.google.com\/finance\/quote\/DVN:NYSE\">DVN<\/a><span style=\"font-family: inherit;\">) is the first of three independent oil and gas businesses to make the list of S&amp;P 500 stocks with the highest dividend yields.<\/span><\/p><p>Because of persistently high global oil prices, the energy sector in general is awash with free cash flow. <br \/><br \/>As a result, it has lavished that cash on shareholders via dividends and share buybacks.<\/p><p>Devon earned $1.3 billion in free cash flow for the fiscal year that ended Sept. 30 while paying out $404 million in dividends.<\/p><p>Remember that the energy industry is punishingly cyclical. <br \/><br \/>The current bull market in energy stocks will not last forever. <br \/><br \/>The dividend yield for DVN has averaged 2.8% over the last five years. <br \/><br \/>Regression to the mean is a real phenomenon.<\/p><p>For the time being, Wall Street seems optimistic about DVN&#8217;s prospects. <br \/><br \/>The stock is up almost a fifth over the last year, compared to the S&amp;P 500&#8217;s loss of more than 8%, and analysts expect more market-beating performance in the future.<\/p><p>With a consensus recommendation of Buy and an average target price of $75.44, DVN stock has an expected upside of nearly 24% over the next year. <br \/><br \/>When the dividend yield is included in, the anticipated total return is roughly 33%.<br \/><br \/><strong><span style=\"font-size: 24.5px; font-family: inherit;\">Coterra Power<br \/><br \/><\/span><\/strong><span style=\"font-family: inherit;\">Coterra Energy (<\/span><a style=\"font-family: inherit;\" href=\"https:\/\/www.google.com\/finance\/quote\/CTRA:NYSE\">CTRA<\/a><span style=\"font-family: inherit;\">) shares have outperformed the wider market by about 20 percentage points over the last 52 weeks, but the Street expects shares will only match the broader market&#8217;s performance over the next year.<\/span><\/p><p>Five analysts covering the independent oil and gas company tracked by S&amp;P Global Market Intelligence grade it as a Strong Buy, three as a Buy, 18 as a Hold, and two as a Strong Sell. <br \/><br \/>This results in a consensus recommendation of Hold.<\/p><p>However, the average price target on the Street paints a very different narrative. <br \/><br \/>Analysts see a 25% gain in the next 12 months for CTRA at $30.48. When the dividend yield is included in, the anticipated total return exceeds 35%.<\/p><p>And CTRA appears to have the financial flow to continue paying dividends. <br \/><br \/>Over the fiscal year ending September 30, the company generated $3.1 billion in free cash flow. This was after distributing $2.1 billion in dividends.<br \/><br \/><strong><span style=\"font-size: 24.5px; font-family: inherit;\">Pioneer Natural Resources<br \/><br \/><\/span><\/strong><span style=\"font-family: inherit;\">No stock in the S&amp;P 500 has a higher yield than Pioneer Natural Resources (<\/span><a style=\"font-family: inherit;\" href=\"https:\/\/www.google.com\/finance\/quote\/PXD:NYSE\">PXD<\/a><span style=\"font-family: inherit;\">).<\/span><\/p><p>Shares have been nearly steady in price over the last 52 weeks, but Wall Street believes they will outperform in 2023. <br \/><br \/>S&amp;P Global Market Intelligence tracks 34 analysts covering PXD, and nine recommend it as a Strong Buy, eight as a Buy, 12 as a Hold, three as a Sell, and two as a Strong Sell. <br \/><br \/>That amounts to a consensus recommendation of Buy, albeit with mixed feelings.<\/p><p>Regardless, analysts&#8217; average target price of $272.43 implies a 22% price increase for PXD over the next 12 months.<\/p><p>As previously said, the oil and gas industry is cyclical. PXD&#8217;s dividend yields 6.2% on average over the last five years. That is fairly high, but significantly lower than current levels.<\/p><p>Shareholders can thank the company&#8217;s cash infusions. <br \/><br \/>For the fiscal year ending September 30, PXD earned $3.6 billion in free cash flow and this was after the corporation paid out $4.7 billion in dividends to stockholders.<\/p><p><em>For More Stocks And Investment Related News, Click\u00a0<a href=\"https:\/\/tradersontrend.com\/\" target=\"_blank\" rel=\"noopener\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/tradersontrend.com\/&amp;source=gmail&amp;ust=1676376606017000&amp;usg=AOvVaw2gHqDqk3HpgxmqlOMgfFWB\">Here<\/a>.<\/em><\/p><p>\u00a0<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>And whenever a stock falls massively, it can be given some second looks, especially if the underlying company&#8217;s present dividend yields are solid and sustainable. Consider what recently occurred with VF Corp. (VFC). VFC is a clothing and footwear corporation best known for its brands Vans, The North Face, Timberland, and Supreme. It is also&#8230;<\/p>\n","protected":false},"author":1,"featured_media":1553,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[165,191,201,407,477,573,632,641],"class_list":["post-1552","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-newsletter","tag-ctra","tag-dividend-yields","tag-dvn","tag-mo","tag-pxd","tag-stocks-and-investment","tag-vfc","tag-vz"],"_links":{"self":[{"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/posts\/1552","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/comments?post=1552"}],"version-history":[{"count":0,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/posts\/1552\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/media\/1553"}],"wp:attachment":[{"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/media?parent=1552"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/categories?post=1552"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tradersontrend.com\/h\/wp-json\/wp\/v2\/tags?post=1552"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}