Dividend Investing – 57 Quality, High Dividend Yield Investment Ideas by Tim du Toit, Quant Investing
High dividend yield companies in a low interest rate world
With interest rates around the world still at record low levels I thought you would value a few high quality investment ideas of companies with an attractive dividend yield (dividend investing).
Quality dividend investing
As you know not all high dividend yield companies make good investments because you also have to make sure the company can continue paying the high dividend in future and that is what this list does for you.
It gives you a list quality companies that have an attractive dividend yield.
How the dividend investing list was selected
Before I get to the list, first some information on how the list was selected.
This is what the screen looks like:
First, to make sure the only quality companies are included; I selected Market Leading companies (large healthy companies) from around the world.
Market Leading companies are non-utility companies with larger than average; market value, number of shares outstanding, free cash flow and sales above 1.5 times the average of all the companies in the screener.
You can read more about Market Leading companies here: Large companies on steroids – Market Leaders
Secondly I selected companies with a healthy dividend coverage ratio of more than 2.5.
This means their profit per share is 2.5 times higher than the dividend per share that they pay out. (Dividend Coverage Ratio = Earnings per share / Dividend per share)
Finally I then sorted this list by dividend yield (Dividend Yield = the trailing 12 month (TTM) dividend / Last closing share price)
No extremely high dividend yields
You will see the dividends are not very high; this is a good thingy because research studies have shown that companies with a very high dividend yield (yields you can hardly believe) do not make good investments.
Find dividend investing companies like this yourself
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Dividend investing screen
This is what the screen looked like:
Source: Quant Investing screener
The first 15 companies
Here is a list of the first 15 large, quality high dividend yield companies the screen came up with:
Source: Quant Investing screener
The next 15 dividend investing companies
Here is the list with the next 15 high dividend yield companies:
Source: Quant Investing screener
Improved quality high dividend companies – Piotroski F-Score added
To improve the quality of the companies in the screen even further I added the Piotroski F-Score to the screen.
Can the Piotroski F-Score help you?
You can read more about how useful the Piotroski F-Score is here:
This academic can help you make better investment decisions – Piotroski F-Score
Can the Piotroski F-Score also improve your investment strategy?
Find dividend investing companies like this yourself
To find more companies like these (incl. 82 other ratios and indicators) for your portfolio click here: I am interested sign me up
This is what was included in the screen:
- Market leading companies
- Dividend coverage ratio of more than 2.5
- Piotroski F-Score higher than 6 (9 = Best and 0 = worse)
- Sorted this list by dividend yield
The 15 highest dividend yield companies
Here are the highest dividend yield companies that met all the screening criteria:
Source: Quant Investing screener
The next 15 highest dividend yield companies:
Source: Quant Investing screener
Please always do your fact checking
As with all screens this is just a list of companies. Please do your own research and fact checking to make sure the company is correctly included in the list.
Your dividend investing analyst
Tim du Toit
PS To find more companies like these (incl. 82 other ratios and indicators) for your portfolio click here: I am interested sign me up
