3 Top Dividend Stocks With Yields Over 4%
Finding a quality company with a dividend yielding over 4% is easier said than done. The average dividend yield in the S&P 500 is 2.2%. But high-yielders are out there and Royal Dutch Shell (NYSE: RDS-A) (NYSE: RDS-B), Verizon Communications (NYSE: VZ), and Dow Inc. (NYSE: DOW) are three that are worth a look. Each yields over 4%, dominates its respective industry, and has a P/E ratio under 16, offering a balance of income and value.
Shell is the top integrated oil and gas company for generating cash flow and returning earnings to shareholders. Its success comes from investing in major projects across its upstream, integrated gas, and downstream sectors to achieve the advantage of scale, all while paying a dividend that yields 6.5%.
Although these major projects are capital-intensive and take several years to become profitable, Shell's industry-leading $22.64 billion in levered free cash flow proves that this strategy works. Levered free cash flow is the amount of money that is left over after a company pays its operating expenses and debt payments, and it can be used to pay a dividend, buy back stock, or invest in the business.
Source Fool.com
