I n the aftermath of “World Black Monday,” how are the best-quality dividend payers on the S&P 500 doing?
Not terribly bad, actually.
IBD wanted to see how many names within the 500 components of the key stock benchmark are flat or up for the year in price, produce a dividend yield of 1% or more, and showed profit growth in the latest quarter.
A total of 66 companies make the list.
What if you whittled the list down to those with a yield of 2.20% (matching the 500’s yield) or greater? And you also required a minimum 10% EPS increase in the latest quarter and positive growth expected for the current fiscal year? The list shrinks to 14.
Here’s a quick look at those elite large caps with exceptional earnings stability. On a scale of zero (most stable) to 99 (most volatile), they must score 25 or less.
GameStop ( GME ), the video game chain, shows a 3.3% annualized yield. The Grapevine, Texas, firm raised its payout twice since March 2014. The stock is trading just 7% off its 52-week high and up 30% year-to-date.
Valero Energy ( VLO ) is 19% off its 52-week peak, but still up 16% since Jan. 1. Full-year profit is seen up 25% to $8.27 a share. The yield is 2.7%. The three-year EPS Stability Factor is decent at 17.
Altria Group ( MO ) (5-year EPS Stability Factor 1, 4.3% yield),Eli Lilly (LLY) (5-year 9, 2.5%),Darden Restaurants (DRI) (3-year EPS Stability of 24, 3.3% yield),Equinix (EQIX) (3-year 25, 2.6%),Avery Dennison (AVY) (5-year 4, 2.6%),Essex Property Trust (ESS) (no EPS factor available, 2.7%),Carnival (CCL) (3-year 15, 2.6%),General Mills (GIS) (5-year 2, 3.2%),Public Storage (PSA) (no factor, 3.4%) andAvalonBay Communities (AVB) (no factor, 3.0%) also make the grade. AvalonBay is down less than 1% for the year.