- Target Corp. has been paying a dividend since its IPO in 1967. It has been paying a dividend of US$3.6 annually with a yield of 1.17%.
- AbbVie Inc.’s dividend yield is 4.51%, and its annualized dividend pay-out is US$5.20.
- Caterpillar Inc.’s dividend yield is 1.87%, and its annualized dividend pay-out is US$4.44.
Dividend stocks are companies that see stable growth. Typically, such stocks are bought for a steady income and long-term growth.
However, before considering such companies, it is essential to consider their dividend yield, payment continuity, earnings per share, and company financials. EPS shows the company’s financial health, which in turn linked to dividend payments received by its shareholders. Hence, a clear picture of the company’s financial health is important before investing.
We explore here 10 dividend-paying stocks in the market:
Merck & Company, Inc. (NYSE: MRK)
It is a US$ 193 billion global health care company. It makes prescription drugs and therapies.
Its annualized dividend is US$2.6, and the dividend yield is 3.41%.
MRK’s earnings per common share was US$2.78 in FY 2020 and US$3.81 in FY2019.
Its share price has grown around 7% and 40% in the last one year and five years, respectively. It closed at US$76.27 on June 11, 2021.
Walmart Inc. (NYSE: WMT)
It is one of the largest retailers in America and has around 11,400 stores at the end of FY 2021.
Its market capitalization is US$394.4 billion. Walmart has been paying a dividend of US$2.20 at an annualized rate, and the dividend yield is 1.56%.
The company’s diluted net income per common shares attributable to Walmart (EPS) is US$4.75 in FY2021 compared to US$5.19 and US$2.26 in FY 2020 and FY 2019, respectively.
Its share price has grown around 19% in the last one year from US$118.08 to US$140.75 at the market close on June 11, 2021.
Target Corporation (NYSE: TGT)
It is another retailer in the US that is engaged in providing various general use products, ranging from food and beverages, apparels, home furnishing, beauty products, among many others. After exiting from the Canadian market in 2015, almost all its income comes from the US market. Its market cap is around US$115.03 billion.
The company has been a paying dividend since its initial public offer in 1967. It has been paying dividend at an annualized US$3.6. The dividend yield is 1.17%.
For the fiscal year ended January 30, 2021, its adjusted diluted earnings per share from continuing operations was US$9.42 in 2020 compared to US$6.39 in 2019.
Target share price has grown nearly 97% in the last one year. It closed at US$232.94 on June 11, 2021.
AbbVie Inc. (NYSE: ABBV)
It is a global research-based pharmaceuticals company engaged in developing, manufacturing, and selling pharmaceutical products. Its focus is on immunology and oncology drugs.
Its market capitalization is US$202.4 billion.
The dividend yield is 4.51%, and its annualized dividend pay-out is US$5.20.
The company’s diluted earnings per share attributable to AbbVie Inc. for the FY ended December 31, 2020, was US$ 2.72 compared to US$5.28 and US$3.66 in FY 2019 & FY 2018, respectively.
The stock grew 24% in the last one year. ABBV share closed at US$115.42 on June 11.
Expeditors International of Washington, Inc. (NASDAQ-GS: EXPD)
It is a major logistics provider. The company’s services focus on international freight forwarding by employing IT systems and contracts with airlines and steamships.
The company has been existing since 1979 and has a market capitalization of US$ 21 billion.
EXPD has a dividend yield of 0.92% and its annualized dividend pay-out is US$ 1.16.
For FY ended December 31, 2020, its diluted earnings attributable to shareholders was US$4.07. It was US$3.39 and US$3.48 for 2019 and 2018, respectively.
Its share price has increased roughly 69% in one year to close at US$125.66 on June 11.
West Pharmaceutical Services, Inc. (NYSE: WST)
It is a healthcare company that manufactures drugs and healthcare products. Its market cap is around US$23.32 billion.
WST has paid a US$0.68 annual dividend, and its dividend yield is 0.2%. The company’s fiscal year ended December 31, 2020, adjusted amounts (non-U.S. GAAP) diluted EPS was US$4.76 compared to US$3.24 in 2019. Its share price rose by 65% in the last one year. It closed at US$345.33 on June 11, 2021.
Caterpillar, Inc. (NYSE: CAT)
It is engaged in manufacturing heavy construction and mining equipment, diesel and natural gas engine, turbines, and diesel-electric locomotives.
This large-cap company has a market capitalization of US$120.25 billion.
Caterpillar dividend yield is 1.87%, and its annualized dividend pay-out is US$4.44.
At the end of FY 2020 in December, its profit per share of common stock, assuming full dilution, was US$5.46 compared to US$10.74 and US$10.26 in 2019 & 2018, respectively.
This capital-goods company share has made a growth of nearly 79% in the last one year to close on June 11, 2021, at US$220.7.
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Sysco Corporation (NYSE: SYY)
It is the largest foodservice provider in the US. It operates mainly in US, Canada, the UK, and France. Sysco distributes both food and non-food products.
Its market capitalization is US$40.35 billion.
The dividend yield is 2.25%, and annualized dividend payment is US$ 1.88.
Diluted EPS adjusted for certain items (non-GAAP) was US$2.01 in FY 2020 ended June 27, 2020, compared to US$3.55 in FY 2019.
For the quarter ended March 27, 2021, diluted EPS adjusted for certain Items (Non-GAAP) for a 39-week period was reported US$0.73 compared to US$2.29 for the same period in 2020.
The share price grew 45.5% in one year. It closed at US$79.87 on June 11, 2021.
Eaton Corporation, Plc (NYSE: ETN)
It is in operation for over 100 years, and it works in various segments, including electrical products, system and services, hydraulics, vehicle, eMobility and aerospace.
ETN’s market capitalization is US$58 billion. The company has been paying dividend constantly, and the yield is 2.07%, and its annualized dividend pay-out is US$3.04.
Net income per share diluted, attributable to ordinary shareholders for December quarter 2020, was US$ 1.18 as compared to US$ 1.09 in 2019.
For the quarter ended March 31, 2021, it was US$1.14 compared to US$1.07 in the corresponding period of 2020. The cash dividend declared in the March quarter was US$0.76.
In the last one year, the share price has increased 69% to close at US$146.63 on June 11, 2021.
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Air Products and Chemicals, Inc. (NYSE: APD)
It is a leading industrial gas supplier company. Founded in 1940, this company supplies liquified natural gas process technology and equipment too.
Its market capitalization is US$66 billion.
Its dividend yield is 2%, and it has been paying an annualized dividend of US$6.0.
Adjusted diluted EPS from continuing operations was US$8.38 in the fiscal year ended September 2020, compared to US$8.21 for FY 2019. Diluted EPS attributable to Air Products for the quarter ended March 31, 2021, was reported at US$2.13.
The stock grew nearly 27% in the last one year. It closed at US$300.45 on June 11, 2021.