5 Large-Cap Stocks With Attractive Payout Ratios In The Consumer Goods Sector – (KFT, GIS, MO, PG, KO)

  on Aug 27,2012 Posted in Dividend Ideas ,International
 
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Currently, the average dividend paying stock on the Standard & Poor’s 500 Index yields around 2%. In the Asian market, the average dividend is near 3%. The past average payout ratio, the amount left over from net income after paying a dividend, for a component of the S&P 500 has been about 50%.

The payout ratio reflects a great deal regarding the management effectiveness of dividend paying stocks. According to investment manager Jesper Medigan, a company that pays a dividend payout ratio of around 40% indicates that management respects the rights of minority shareholders.

Dividend paying stocks are highly eye-catching when interest rates are low. The Wall Street Journal says that market participants have gotten the lion’s share of their income from dividend yields, not dividend growth or capital gains.

Kraft Foods Inc (NASDAQ:KFT) annual dividend yield stands at 2.77% and maintains a dividend payout ratio of 57.21%. The stock has a dividend of $1.16 annually. KFT shares traded in the range of $31.88 – $41.90 in the last 52 weeks. KFT, together with its subsidiaries, manufactures and markets packaged food products worldwide.

General Mills, Inc (NYSE:GIS) manufactures and markets branded consumer foods worldwide. The company also supplies branded and unbranded food products to the foodservice and commercial baking industries. General Mills, Inc pays a dividend of $1.32 annually. The company has an annual dividend yield of 3.38% and has a dividend payout ratio at 51.05%. Shares of GIS have been floating in the range of $35.84 – $41.06 in the last 52 weeks.

Altria Group, Inc (NYSE:MO) has an annual dividend of $1.64 while keeping its dividend yield at 4.81%. The company maintains a dividend payout ratio of 75.82%. Shares of MO have been trading in the range of $25.27 – $36.29 in the last 52 weeks. MO, through its subsidiaries, engages in the manufacture and sale of cigarettes, smokeless products, and wine in the United States and internationally.

The Procter & Gamble Company (NYSE:PG) together with its subsidiaries, engages in the manufacture and sale of a range of branded consumer packaged goods. The Procter & Gamble Company pays a dividend of $2.25 annually. The stock has an annual dividend yield of 3.35% and maintains a dividend payout ratio of 66.02%. Shares of PG have been floating in the range of $59.07 – $67.95 in the last 52 weeks.

The Coca-Cola Company (NYSE:KO) shares have been trading in the range of $31.67 – $40.67 in the last 52 weeks. The company pays a dividend of $1.02 annually and has a dividend payout ratio of 50.82%. The stock maintains an annual dividend yield of 2.65%. KO, a beverage company, engages in the manufacture, marketing, and sale of nonalcoholic beverages worldwide.

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.

 



 

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