- Advertisement -
Bonds have become more attractive as Treasury yields approach their highest levels in a decade, but some of the highest-dividing stocks also provide competitive payouts to investors. Bond yields rose as investors became more concerned about hot inflation readings and the Federal Reserve’s rate hike plan. Yields rise as prices fall. Benchmark 10-year Treasuries topped 4% last week before falling below that threshold on Monday morning. As rates rise, there are fewer stocks these days that can compete with bonds on returns. CNBC used FactSet data to find the top 1,500 S&P-listed stocks with returns above 4% — better than 10-year Treasuries. Equity returns also proved safe, with dividend coverage ratios in excess of 2 and a total debt-to-equity ratio of less than 150%. These stocks have also outperformed the stock markets over the past 12 months with returns above -6.54%. Take a look at some of the stocks that could compete with bond yields and what analysts expect from them going forward. Egg manufacturer and distributor Cal-Maine Foods has the highest dividend yield of 9.5% on the list. Shares are up about 4% in 2023. Warren Buffett’s food and drink group Kraft Heinz is another name on the list. Kraft Heinz offers investors a dividend yield of 4.1% and the company’s debt-to-equity ratio is 42.7%. The company’s fourth-quarter earnings and sales beat Wall Street’s expectations, but offered a more restrained earnings outlook for 2023 due to pressure from higher costs. However, analysts are mixed on the stock, with 13 of 22 analysts covering the stock giving it a Hold rating, according to FactSet. Several energy companies also made the elite dividend list, such as CONSOL Energy, Coterra Energy, Kinder Morgan and Devon Energy. CONSOL Energy has a dividend yield above 7%. The company’s shares are up 67% in the last 12 months. Several financial groups were also represented, including Huntington Bancshares, Corporate Office Properties Trust and Provident Financial Services.
Credit: www.cnbc.com /
- Advertisement -