Three Dow-Jones shares convince with attractive dividend yields. These titles could be worthwhile for investors.
• Verizon with a high return and strong cash generation
• Chevron has increased dividends for decades
• Merck scores with a strong pipeline
Understand dividends
Dividends are regular payments by companies to their shareholders. They are usually released quarterly. The dividend yield results from the ratio of the annual distribution to the current share price. If the dividend increases with the same price, the dividend yield increases. If the course falls, the return also increases, even if the amount paid remains the same. High returns can therefore be an indication of financial strength – but also to problems that have led to price losses.
The three dividend-strongest Dow shares
Therefore, the question arises whether it makes sense to rely on the most dividend stocks. This depends on some fundamental considerations. While it is often warned to buy shares with particularly high dividend yields, the assessment of the US Leindex Dow Jones is a bit more positive, reports The Motley Fool. Because in Dow Jones, which only includes 30 companies, the risk of problematic dividend payers is less than in broader indices.
These are the freesters
The leaders regarding the dividend yield are included in the Dow Jones Verizon Communications, Chevron and Merck.
According to The Motley Fool, the current dividend yield from Verizon Communications is currently 6.3 percent. Despite high debts, the telecommunications group is strongly positioned, generate a lot of free cash flow, which can be used to reply, dividend payments and investments in fiber optic and 5G networks. The assessment is currently attractive.
Meanwhile, Chevron offers a dividend yield of 4.61 percent. The company has been increasing its dividend for 38 years and is therefore considered a well -suited long -term source of income for investors who want to rely on the energy sector. The level of evaluation is currently a little above the five -year average.
The pharmaceutical company Merck has a dividend yield of 3.87 percent. The company benefits from a wide product portfolio, including important medication and vaccines. There are worries about leaking patents, but Merck has many new products in his pipeline and pursue strategies to extend patent protection. The company is attractively overvalued with a KGV below its five -year average.
Editor finance.net
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