Opportunity for Risk Averse Investors to Get Good Return; Analysis of Top 5 Dividend Yield Paying Blue Chip Stocks – T, VZ, INTC, MRK, DD

Dividend yield is defined as the amount a company pays to its shareholders on yearly basis for their investments. Dividend yield ratio is shown as a percentage and indicates magnetism of investing in a company’s shares.

Dividend yield is considered as Return on investment for income investors who don’t have any interest in capital gains or long-term earnings. Dividend yield is calculated as yearly dividend per share divided by present market value per share.

Market value of stock affect dividend yield ratio of company. In this article we will discuss best 5 dividend paying stocks of Dow Jones Industrial Average index.

AT&T Inc (NYSE:T) is the highest dividend yield paying stock among Dow Jones Industrial average index with dividend yield ratio of 5.38%. The telecommunication giant has the market capitalization of 489.94 billion while 5.68 billion shares were outstanding. Beta factor, which is used to measure riskiness of the security, was recorded as 0.56 while its price to earnings ratio was 43.38. AT&T offered net profit margin of 3.68% while its gross profit margin was 51.70%.

Verizon Communications Inc (NYSE:VZ) has the market capitalization of 121.41 billion. The telecom company offered yearly dividend yield of 4.84%, which is second best in this blue chip index. Verizon has 2.85 billion shares outstanding while its 55% shares were owned by institutional investors. The price to earnings ratio was booked as 39.66 while price to book ratio was recorded as 3.23. The company made $3.08 billion in earnings during previous 12 months on revenue of $114.24 billion.

Intel Corporation (NASDAQ:INTC) has the market capitalization of 105.74 billion while its EPS was booked as 2.13. The world’s biggest chip maker has 4.98 billion shares outstanding while institutions investors own only 63% stake. Dividend yield per annum was 4.24% while P/S ratio was 1.98. The company has operating profit margin of 27.20% while net profit margin was 20.63%. In the liquidity analysis, current ratio was 2.43 while quick ratio was 2.06.

Merck & Co., Inc (NYSE:MRK) was also among high dividend yield stocks and offered 4% dividend yield per annum. The Whitehouse Station, New Jersey based drug giant has the market capitalization of 130.66 billion while 3.04 billion shares were outstanding. The company offered net profit margin of 14.41% while its gross profit margin was 76.27%. Return on equity ratio was booked as 12.21%.

E I Du Pont De Nemours And Co (NYSE:DD) receives the fifth rank in Dow Jones Industrial Average index by offering 3.66% dividend yield. The company has the market capitalization of 43.82 billion. ROA ratio of the company was 5.79% while its ROI ratio was 7.89%. The current ratio was 1.58 while quick ratio was 1.10. Beta factor, which is used to measure risk associated with the security, was 1.51. Shares of the company were lagging behind 50 days simple moving average with 6.42% while 20 days simple moving average with 3.03%.

Disclosure: The views and opinions expressed in this article are exclusively those of the authors who have no stake in any stocks mentioned, and hold no plan to acquire any stake within the next 5 days.