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It’s that time of the month again. Things are always slower in the summer in terms of news, dividend increases, etc. There are still some great opportunities out there and I’m always on the lookout for ways to improve my Ultimate Sustainable Dividend portfolio. Why? Because it’s a key part of increasing my monthly passive income (see last update here). There is no “perfect” stock of course. The market is fairly efficient so it’s all about finding high quality stocks that are a good match for my portfolio and provide a good potential/downside risk ratio. Obviously, yield is just one criteria but it’s an important one and for that reason, looking at the top large cap stocks in terms of dividend payout is a great way for me to get started.
A Rare Event At The Top Of these Rankings
You might remember that in the past few months, we’ve often had Winstream Holdings (WIN) at the very top in terms of yield. It has retained that position but the yield decreased a bit after WIN shot up following very solid earnings. Take a look at this chart:
Here is the list!
| Ticker | Name | Price | Dividend Yield | Payout Ratio | Ex-Dvd Date |
|---|---|---|---|---|---|
| WIN | Windstream Holdings Inc | 11.46 | 8.73 | 250.77 | 9/26/2014 |
| DO | Diamond Offshore Drilling Inc | 46.79 | 7.47 | 88.69 | 8/4/2014 |
| RIG | Transocean Ltd | 40.34 | 7.44 | 63.79 | 8/20/2014 |
| FTR | Frontier Communications Corp | 6.55 | 6.11 | 362.42 | 9/10/2014 |
| ESV | Ensco PLC | 50.65 | 5.92 | 36.9 | 9/11/2014 |
| CTL | CenturyLink Inc | 39.24 | 5.5 | N/A | 9/4/2014 |
| HCP | HCP Inc | 41.53 | 5.25 | 106.92 | 8/7/2014 |
| T | AT&T Inc | 35.59 | 5.17 | 53.13 | 10/8/2014 |
| TE | TECO Energy Inc | 17.46 | 5.04 | 96.66 | 8/12/2014 |
| HCN | Health Care REIT Inc | 63.63 | 5 | 3110.77 | 8/7/2014 |
| SO | Southern Co/The | 43.29 | 4.85 | 107.36 | 11/6/2014 |
| RAI | Reynolds American Inc | 55.85 | 4.8 | 79.1 | 9/8/2014 |
| KMI | Kinder Morgan Inc/DE | 35.98 | 4.78 | 138.48 | 10/31/2014 |
| NE | Noble Corp plc | 31.37 | 4.78 | 25.2 | 8/8/2014 |
| MO | Altria Group Inc | 40.6 | 4.73 | 81.43 | 9/15/2014 |
| DRI | Darden Restaurants Inc | 46.75 | 4.71 | 157.37 | 10/10/2014 |
| FE | FirstEnergy Corp | 31.21 | 4.61 | 245.23 | 8/5/2014 |
| PM | Philip Morris International Inc | 82.01 | 4.58 | 68.07 | 9/23/2014 |
| VTR | Ventas Inc | 63.5 | 4.57 | 164.06 | 9/11/2014 |
| ETR | Entergy Corp | 72.83 | 4.56 | 83.11 | 8/12/2014 |
| PBCT | People's United Financial Inc | 14.52 | 4.55 | 87.67 | 10/29/2014 |
| PPL | PPL Corp | 32.99 | 4.52 | 79.79 | 9/9/2014 |
| ED | Consolidated Edison Inc | 56.09 | 4.49 | 67.89 | 8/11/2014 |
| DUK | Duke Energy Corp | 72.13 | 4.41 | 82.38 | 8/13/2014 |
| MAT | Mattel Inc | 35.425 | 4.29 | 55.2 | 8/25/2014 |
| PCL | Plum Creek Timber Co Inc | 41.37 | 4.25 | 135.51 | 8/13/2014 |
| PNW | Pinnacle West Capital Corp | 53.49 | 4.24 | 60.31 | 10/30/2014 |
| PEG | Public Service Enterprise Group Inc | 35.17 | 4.21 | 58.57 | 9/3/2014 |
| VZ | Verizon Communications Inc | 50.42 | 4.2 | 51.73 | 10/8/2014 |
| AEE | Ameren Corp | 38.45 | 4.16 | 75.81 | 9/8/2014 |
| TEG | Integrys Energy Group Inc | 65.56 | 4.15 | 61.88 | 8/27/2014 |
| SPLS | Staples Inc | 11.59 | 4.14 | 44.26 | 9/24/2014 |
| SCG | SCANA Corp | 50.88 | 4.13 | 60.3 | 9/8/2014 |
| PCG | PG&E Corp | 44.67 | 4.08 | 100.61 | 10/3/2014 |
| LO | Lorillard Inc | 60.48 | 4.07 | 69.92 | 8/27/2014 |
| KIM | Kimco Realty Corp | 22.38 | 4.02 | 174.48 | 12/29/2014 |
| POM | Pepco Holdings Inc | 26.85 | 4.02 | 245.45 | 9/8/2014 |
| EXC | Exelon Corp | 31.08 | 3.99 | 73.55 | 8/13/2014 |
| WMB | Williams Cos Inc/The | 56.63 | 3.95 | 222.62 | 9/10/2014 |
| KRFT | Kraft Foods Group Inc | 53.585 | 3.92 | 45.05 | 9/26/2014 |
| COH | Coach Inc | 34.56 | 3.91 | 33.73 | 9/10/2014 |
| CNP | CenterPoint Energy Inc | 24.32 | 3.91 | 114.15 | 8/13/2014 |
| XEL | Xcel Energy Inc | 30.8 | 3.9 | 58.43 | 9/23/2014 |
| AEP | American Electric Power Co Inc | 51.99 | 3.85 | 64.12 | 8/6/2014 |
| CINF | Cincinnati Financial Corp | 46.02 | 3.82 | 52.22 | 9/15/2014 |
| MAC | Macerich Co/The | 65.01 | 3.82 | 252.35 | 8/18/2014 |
| GAS | AGL Resources Inc | 51.64 | 3.8 | 70.93 | 8/13/2014 |
| DTE | DTE Energy Co | 73.82 | 3.74 | 68.53 | 9/11/2014 |
| CMS | CMS Energy Corp | 28.93 | 3.73 | 59.69 | 11/5/2014 |
| PAYX | Paychex Inc | 41.01 | 3.71 | 81.37 | 10/31/2014 |
| HST | Host Hotels & Resorts Inc | 21.74 | 3.68 | 169.52 | 9/26/2014 |
| LEG | Leggett & Platt Inc | 32.8 | 3.66 | 87.71 | 9/12/2014 |
| PFE | Pfizer Inc | 28.7 | 3.62 | 57.68 | 11/5/2014 |
| NU | Northeast Utilities | 43.9 | 3.58 | 59.45 | 9/11/2014 |
| WEC | Wisconsin Energy Corp | 43.58 | 3.58 | 56.96 | 8/12/2014 |
| OKE | ONEOK Inc | 64.43 | 3.57 | 117.5 | 11/5/2014 |
| D | Dominion Resources Inc/VA | 67.64 | 3.55 | 72.88 | 8/27/2014 |
| GM | General Motors Co | 33.82 | 3.55 | 0 | 9/12/2014 |
| COP | ConocoPhillips | 82.5 | 3.54 | 41.66 | 10/16/2014 |
| GE | General Electric Co | 25.15 | 3.5 | 53.11 | 9/18/2014 |
| NAVI | Navient Corp | 17.2 | 3.49 | N/A | 9/3/2014 |
| TGT | Target Corp | 59.59 | 3.49 | 53.32 | 8/18/2014 |
| GRMN | Garmin Ltd | 55.04 | 3.49 | 57.44 | 9/11/2014 |
| CA | CA Inc | 28.88 | 3.46 | 50.39 | 8/19/2014 |
| HAS | Hasbro Inc | 49.96 | 3.44 | 72.88 | 1/30/2015 |
| MCD | McDonald's Corp | 94.56 | 3.43 | 55.76 | 8/28/2014 |
| CLX | Clorox Co/The | 86.87 | 3.41 | 60.06 | 10/20/2014 |
| FCX | Freeport-McMoRan Inc | 37.22 | 3.36 | 84.82 | 10/16/2014 |
| WM | Waste Management Inc | 44.89 | 3.34 | 696.94 | 9/5/2014 |
| PG | Procter & Gamble Co/The | 77.32 | 3.33 | 58.82 | 10/15/2014 |
| CAG | ConAgra Foods Inc | 30.13 | 3.32 | 140.9 | 10/29/2014 |
| CVX | Chevron Corp | 129.24 | 3.31 | 34.89 | 8/15/2014 |
| K | Kellogg Co | 59.83 | 3.28 | 36.16 | 8/28/2014 |
| GIS | General Mills Inc | 50.15 | 3.27 | 53.41 | 10/10/2014 |
| SE | Spectra Energy Corp | 40.92 | 3.27 | 80.56 | 8/8/2014 |
| PSA | Public Storage | 171.61 | 3.26 | 105.02 | 9/11/2014 |
| SYY | Sysco Corp | 35.69 | 3.25 | 65.99 | 10/8/2014 |
| PLD | Prologis Inc | 40.81 | 3.23 | 288.82 | 9/11/2014 |
| KMB | Kimberly-Clark Corp | 103.87 | 3.23 | 58.08 | 9/3/2014 |
| IRM | Iron Mountain Inc | 33.51 | 3.22 | 213.91 | 9/24/2014 |
| ABBV | AbbVie Inc | 52.34 | 3.21 | 76.99 | 10/15/2014 |
| LLY | Eli Lilly & Co | 61.06 | 3.21 | 44.89 | 8/13/2014 |
| LMT | Lockheed Martin Corp | 166.97 | 3.19 | 52 | 8/28/2014 |
| MCHP | Microchip Technology Inc | 45.02 | 3.16 | 71.14 | 8/19/2014 |
| GME | GameStop Corp | 41.97 | 3.15 | 37.21 | 8/28/2014 |
| AVB | AvalonBay Communities Inc | 148.08 | 3.13 | 932.94 | 9/30/2014 |
| CVC | Cablevision Systems Corp | 19.22 | 3.12 | 122.86 | 8/13/2014 |
| KO | Coca-Cola Co/The | 39.29 | 3.11 | 57.85 | 9/11/2014 |
| MRK | Merck & Co Inc | 56.74 | 3.1 | 116.53 | 9/11/2014 |
| EQR | Equity Residential | 64.65 | 3.09 | N/A | 9/18/2014 |
| SPG | Simon Property Group Inc | 168.19 | 3.09 | 111.96 | 8/13/2014 |
| NEE | NextEra Energy Inc | 93.89 | 3.09 | 65.11 | 8/27/2014 |
| AIV | Apartment Investment & Management Co | 34.18 | 3.04 | 31414.27 | 8/13/2014 |
| CSCO | Cisco Systems Inc | 25.23 | 3.01 | 33.16 | 9/30/2014 |
| CPB | Campbell Soup Co | 41.59 | 3 | 52.87 | 10/9/2014 |
| ADI | Analog Devices Inc | 49.63 | 2.98 | 60.32 | 8/27/2014 |
| AVY | Avery Dennison Corp | 47.21 | 2.97 | 45.85 | 8/29/2014 |
| PEP | PepsiCo Inc | 88.1 | 2.97 | 51.2 | 9/3/2014 |
| NUE | Nucor Corp | 50.22 | 2.95 | 96.74 | 9/30/2014 |
| IP | International Paper Co | 47.5 | 2.95 | 41.05 | 8/13/2014 |
It’s Not All About Yield
Of course, as I always mention, dividend yield is one criteria but there’s a lot more involved here and finding a stock with strong overall fundamentals is key. I generally try to get stocks that respect the 7-7-7 rule. That is 7% of 5 year growth in dividends, earnings and sales. If I remove those with a payout ratio over 80%, I get very few results:
| Ticker | Name |
|---|---|
| ESV | Ensco PLC |
| INTC | Intel Corp |
| NE | Noble Corp plc |
| CVX | Chevron Corp |
| LO | Lorillard Inc |
| COH | Coach Inc |
| SPG | Simon Property Group Inc |
I will be writing more about these names soon in our free mailing list, join now if you have not done so yet:
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