Best Five Dividend Yield Paying Blue Chip Stocks – T, VZ, INTC, MRK, DD
The dividend yield is the sum of a corporation’s yearly dividends a share, divided by the present price per share. By investing in corporations with stable and high dividend yields, investors can secure a relatively stable cash flow.
On the other hand, dividend yields can be high when a firm is facing financial trouble and the corporation may lower the dividend in the near future.
Dividend yield lifts as the price per share declines and dividend yield falls as the share price moves up. IN this article we will discuss top five dividend yield paying blue chip stocks. Blue chip stocks are the components of Dow Jones Industrial Average, a key U.S. index.
AT&T Inc (NYSE:T) is the best dividend yield paying stock among Dow Jones industrial average index with dividend yield ratio of 5.25%. Major U.S. Telecom Company has the market capitalization of 194.65 billion while 5.68 billion shares were outstanding. Beta factor, which is used to measure riskiness of the security, was recorded as 0.56 while its price to earnings ratio was 44.46. AT&T offered net profit margin of 3.68% while its gross profit margin was 51.70%.
Verizon Communications Inc (NYSE:VZ) has the market capitalization of 123.57 billion. The company offered yearly dividend yield of 4.76%, which is second best in this index. Verizon has 2.85 billion shares outstanding while its 55% stock was held by institutional investors. The price to earnings ratio was booked as 40.37 while price to book ratio was recorded as 3.28. The corporation made $3.08 billion in earnings during previous 12 months on $114.24 billion of sales.
Intel Corporation (NASDAQ:INTC) has the market capitalization of 109.47 billion while its EPS was booked as 2.29. The world’s biggest chip maker has 4.98 billion shares outstanding while institutions investors own only 63% shares. Dividend yield per annum was 4.09% while P/S ratio was 2.04. The company has operating profit margin of 29.63% while net profit margin was 22.13%. In the liquidity analysis, current ratio was 1.93 while quick ratio was 1.48.
Merck & Co., Inc (NYSE:MRK) was also among high dividend yield paying blue chip stocks and offered 3.98% dividend yield per annum. The New Jersey based company has the market capitalization of 131.42 billion while 3.04 billion shares were outstanding. The company offered net profit margin of 14.41% while its gross profit margin was 76.27%. ROE was booked as 12.21% while ROA was 6.48. Shares of the company were moving ahead of 20 days simple moving average with +1.91%.
E I Du Pont De Nemours And Co (NYSE:DD) gets the fifth rank in blue chip stocks by offering 3.73% dividend yield. The company has the market capitalization of 43.03 billion. ROA ratio of the company was 5.79% while its ROI ratio was 7.89%. In the liquidity analysis, the current ratio was 1.58 while quick ratio was 1.10. Beta factor, which is used to measure risk associated with the security, was 1.46.
Disclosure: Opinions expressed in this article are those of the authors alone who have no stake in any stocks mentioned, and did not plan to acquire any stake within the next 72 hours.