7 Large-Cap and High Dividend Yield Companies Going Ex-Dividend Next Week

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High Dividend Yield

In the aftermath of the third consecutive interest rate cut by the Fed on October 30, 2019, some investors might consider shifting a portion of their portfolio towards more stable-performing equities, such as large-cap companies that offer high dividend yield income payouts.

For investors that wish to make this portfolio reallocation, the list below offers seven companies with large market capitalizations ($14.6 billion to $230 billion), high dividend yields and rising dividend payouts for several years. Additionally, all these companies are going ex-dividend next week.

These equities might grow at lower rate in high bull markets. Alternatively, these equities are also more likely to get through troubled markets without high volatility and might even deliver decent returns from a combination of capital gains and income distributions. The seven equities on the list below could deliver risk reduction for investors looking to protect a portion of their portfolio from any potential near-term volatility.

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The equity analysis process can be made very complex to increase the likelihood of selecting the best stock picks for a particular investment strategy. Many service providers and financial advisory sites offer a selection of tools, such as the Dividend Screener tool available at DividendInvestor.com. However, the selection of the seven equities on the list below involved just three criteria. The equity’s ex-dividend dates had to fall between October 6 and October 13, 2019, the company’s market capitalization had to exceed 10 billion and the dividend yield had to be above 3%. Sorted by dividend yield in ascending order, below are the five companies going ex-dividend next week you should consider.

 

7 Large-Cap and High Dividend Yield Companies Going Ex-Dividend Next Week: #7

American Electric Power Company, Inc. (NYSE:AEP)

Ex-Dividend Date: November 7, 2019

Dividend Yield: 3.01%

The upcoming $0.70 quarterly dividend marks a 4.5% boost above the most recent payout of $0.67. This new quarterly payout corresponds to a $2.80 annualized amount and currently yields 3.01%. Because the share price growth outperformed the pace of dividend hikes, the current yield is 10% below the company’s own 3.33% five-year yield average. However, while trailing its own five-year average, the current yield outperformed the 2.84% average yield of the overall Utilities sector by more than 5%.

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Since skipping a dividend hike in 2009, the American Electric Power Company enhanced its annual dividend 71%, or at an average rate of 5.5% per year. The rising dividend payouts and company’s capital gains delivered a combined total return of more than 31% over the trailing 12-month period. Over the past three years, total returns were more than 60% and total returns exceeded 82% over the last five years.

 

7 Large-Cap and High Dividend Yield Companies Going Ex-Dividend Next Week: #6

SunTrust Banks, Inc. (NYSE:STI)

Ex-Dividend Date: November 7, 2019

Dividend Yield: 3.20%

The SunTrust Bank boosted its quarterly payout amount 12% from $0.50 last year to the current $0.56 payout amount. This new quarterly amount corresponds to a $2.24 annualized distribution and a 3.20% forward dividend yield, which is one third higher than the bank’s own 2.43% average yield over the past five years.

Since nearly eliminating its quarterly dividend distributions in the aftermath of the 2008 financial crisis, the SunTrust Bank enhanced its annual dividend payout amount 56-fold for a 56.4% average annual growth rate. Even disregarding the tripling of the dividend payout in the first year of the current streak, the annual payout still advanced at an average annual rate of 44% over the last eight years.

 

7 Large-Cap and High Dividend Yield Companies Going Ex-Dividend Next Week: #5

Consolidated Edison, Inc. (NYSE:ED)

Ex-Dividend Date: November 12, 2019

Dividend Yield: 3.23%

Consolidated Edison’s (ConEd) current quarterly dividend amount of $0.74 is 3.5% higher than the $0.715 dividend payout one year earlier. The current quarterly payout amount corresponds to a $2.96 annualized distribution and a 3.23% forward dividend yield. ConEd’s current streak of annual dividend hikes extends more than four decades. Just over the past two decades, the company has enhanced its annual dividend payout more than 550%, which corresponds to an average dividend growth rate of nearly 9% per year.

Asset appreciation and dividend income over the trailing one-year period combined for a 23.4% total return on shareholders’ investment. Three-year total returns exceeded 36% and total returns over the past five years were more than 66%.

 

7 Large-Cap and High Dividend Yield Companies Going Ex-Dividend Next Week: #4

Pfizer, Inc. (NYSE:PFE)

Ex-Dividend Date: November 7, 2019

Dividend Yield: 3.74%

Pfizer’s $0.36 current quarterly dividend is nearly 6% higher than the company’s $0.34 dividend amount from the same period last year. The new quarterly distribution is equivalent to a $1.44 annualized payout and a 3.74% forward dividend yield, which is 9% above the Pfizer’s own 3.43% five-year yield average.

In addition to outperforming its own five-year average, Pfizer’s current yield is also six-fold higher than the 0.52% simple average yield of the entire Health Care sector, as well as double the 1.85% average yield of its peers in the Major Drug Manufacturers industry segment. Over the past nine years of consecutive annual dividend hikes, Pfizer doubled its annual dividend amount, which corresponds to an 8% average annual growth rate.

 

7 Large-Cap and High Dividend Yield Companies Going Ex-Dividend Next Week: #3

Wells Fargo & Company (NYSE:WFC)

Ex-Dividend Date: November 7, 2019

Dividend Yield: 3.91%

After two hikes in the past 12 months, Wells Fargo’s current quarterly dividend payout amount of $0.51 is 18.6% higher than the $0.43 distribution from the same period last year. This new quarterly dividend is equivalent to a $2.04 annualized distribution and yields 3.91%, which is 31.6% higher than Wells Fargo’s own 2.97% five-year yield average.

After cutting its quarterly dividend payout from $0.34 to $0.05 in 2008, WFC paid the same flat quarterly amount for the subsequent eight periods. However, since resuming dividend hiked in the second quarter 2011, the company enhanced its annual dividend more than 10-fold. This advancement corresponds to an average annual growth rate of 29.4%.

 

7 Large-Cap and High Dividend Yield Companies Going Ex-Dividend Next Week: #2

International Business Machines Corporation (NYSE:IBM)

Ex-Dividend Date: November 7, 2019

Dividend Yield: 4.79%

The International Business Machines Corporation has not missed a quarterly payout since introducing dividend distributions in 1916. Additionally, IBM has enhanced its annual dividend payout over the past 23 consecutive years. During that period, the company advanced its annual distribution more than 26-fold. This advancement pace corresponds to an average annual growth rate of 15.5% per year.

IBMs most current dividend hike boosted the quarterly payout 3.2% from $1.57 in the previous quarter to the current $1.62 distribution. The current annualized payout of $6.48 corresponds to a 4.79% forward yield, which is 31% above IBM’s own five-year yield average of 3.64%. After a decline of nearly 40% from early 2017 to the end of 2018, the share price gained nearly 20% and combined with the rising dividend distributions for a total return of more than 24% over the trailing 12 months.

 

7 Large-Cap and High Dividend Yield Companies Going Ex-Dividend Next Week: #1

Magellan Midstream Partners LP (NYSE:MMP)

Ex-Dividend Date: November 6, 2019

Dividend Yield: 6.40%

Headquartered in Tulsa, Oklahoma, and founded in 2000, Magellan Midstream Partners, L.P. engages in the transportation, storage and distribution of refined petroleum products and crude oil in the United States. The company has increased its annual dividend payout amount in 71 out of 75 quarters since introducing dividends in May 2001. Since initiating dividend payments, MMP enhanced its quarterly payout amount nearly 14-fold, which is equivalent to an average quarterly growth rate of 3.7%, or 13.2% per year.

In the aftermath of the 2008 crisis, MMP paid a flat dividend amount for five consecutive quarters before resuming hikes in May 2010. For the upcoming pay date, the company has boosted it quarterly payout 0.7% to $1.02. Since resuming dividend hikes in 2010, the company managed to maintain a 2.8% quarterly growth rate average. Combined benefit of the rising dividend income and a modest share price growth delivered a 12% total return over the past 12 months.

 

 


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Ned-Piplovic

 

Ned Piplovic is the assistant editor of website content at Eagle Financial Publications. He graduated from Columbia University with a Bachelor’s degree in Economics and Philosophy. Prior to joining Eagle, Ned spent 15 years in corporate operations and financial management. Ned writes for www.DividendInvestor.com and www.StockInvestor.com.


 

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