4 Stocks with Dividends Yielding More Than 4%

Stocks with Dividends Yielding More Than 4%: Capital appreciation is important, but sometimes income is your top priority, and thats where dividend stocks find a place in your portfolio.

Companies like Las Vegas Sands Corp [NYSE:LVS] and Carnival Corporation [NYSE: CCL] offer yields close to 5% at the moment, but that’s not all. The resort builder and the cruise line behemoth also offer the potential to deliver handsome returns on investments.

Here we look at top 4 companies that provide dividends north of 4% and also offer a good shot at capital appreciation.

Is Kohl’s Selloff A Buying Opportunity?

Kohl’s Corporation [NYSE: KSS] is an operator of department stores. The company operates around 1,158 department stores, a website Kohls.com, 12 FILA outlets, and 4 Off-Aisle clearance centers.

Kohl’s sells moderately-priced private label and national brand apparel, footwear, accessories, beauty and home products. The company’s merchandise mix includes both national brands and private brands that are available only at Kohl’s.

While those goods may sound like staples demanded by all consumers, Kohl’s has been losing the retail battle to Target, which invested more heavily in technology and executed better too – think Amazon-style 1-day delivery.

Kohl’s Corporation [NYSE: KSS] posted its quarterly earnings data on November 19th. The company reported $0.74 earnings per share for the quarter, falling short of analysts’ consensus estimates of $0.86 by $0.12. During the same quarter last year, the department store retail chain posted $0.98 earnings per share.

The company’s revenues marked its third consecutive miss, standing at $4.63 billion during the quarter, compared to analysts’ expectations of $4.69 billion.

Kohl’s had a net margin of 3.69% and a return on equity of 15.94%. Net sales dipped 0.3% to $4.36 billion, while other revenues grew 3.1% to $267 million in the quarter. Further, management lowered its FY20 earnings guidance. The company now envisions earnings per share guidance of $4.75 – $4.95 for the period, compared to consensus EPS estimate of $5.19.

Kohl’s announced a quarterly dividend of 67 cents per share. This represents a $2.68 dividend on an annualized basis and a yield of 5.70%.

Enhanced supply chain expenses, wage rate pressures, increased cost associated with the Amazon [NASDAQ: AMZN] return program, and higher in-store overhead expenses were the primary factors responsible for reported dismal third-quarter fiscal 2019 results.

Its stock price has been found in the range of 43.33 to 75.91 and with the company’s lackluster earnings report, its stock price is now inches away from reaching a 52-week low.

Nonetheless, the company reverted to growth in this quarter after posting comps drop in the previous two quarters. Comps in the third quarter were lifted by a solid back-to-school season.

Shares of Kohl’s Corporation, on the whole, emit mixed signals. Wall Street analysts’ 12-month price outlook ranges from $42.00 to $95.00 with an average estimate to reach $61.13 in 1 year. All in all, Kohl’s is a risky play at current levels with tapering margins and lowering earning expectations.

However, adventurous buyers could view the handsome dividend north of 5% as both an attractive income opportunity and a cushion in case the share price dips further.

Newell Brands Buying Its Own Stock Is Positive

Newell Brands Inc. [NYSE: NWL] designs and sells everything from baby wear to brand names like Crock Pot. Sharpies, Rubbermaid and Sunbeam brands all fit under its umbrella among dozens of other household names.

The Hoboken, New Jersey-based company was formerly known as Newell Rubbermaid Inc. and changed its name to Newell Brands Inc. in April 2016. The company is a dividend machine, offering a payout north of 4% annually.

Most recently, Newell Brands Inc. [NYSE: NWL] released its quarterly earnings data on 1st November. The company reported $0.73 earnings per share for the quarter, beating analysts’ consensus estimates of $0.56 by $0.17. It had posted $0.81 earnings per share in the same period last year.

NWL topped analysts’ revenue estimates of $2.38 billion by generating $2.45 billion for the quarter. Newell Brands had a net margin of – 46.92% and a debt-to-equity ratio of 1.54.

Moving forward, the company expects Q4 revenue of $2.5B to $2.6B and EPS of $0.35 to $0.40.

The company declared a quarterly dividend of $0.23 per share, which translates into an annual dividend of $0.92 and a yield of 4.70%.

Newell Brands also announced that its board had authorized a stock repurchase plan where the company would buy up to 19.8% of its shares through open market purchases. Share repurchase plans are typically indicative of the fact that the management considers its company’s shares to be undervalued.

The company also revealed that it wouldn’t proceed with asset sales previously earmarked for paying down debt. Newell Brands Inc. has recorded a 52-week low stock price of 13.04 and 52-week high of 24.57.

Analysts seem to have mixed sentiments about Newell Brands’ share price. Overall, the forecasts range from $15.00 to $25.00.

On average, they expect Newell Brands’ share price to reach $19.63 over a one-year period. If management can lower costs, suppress debt levels and display sales growth, the stock can witness a sharp rise, making it worth watching. In the meantime, income-oriented, dividend investors can take comfort in the handsome payout each quarter.

Las Vegas Sands Dividend Yield Near 5%

Las Vegas Sands Corp [NYSE: LVS] is a casino giant that spans the globe with locations as far afield as Singapore and Macau.

Casino stocks are tethered to the overall health of the economy and historically run into trouble when the economy turns south, but Las Vegas Sands is heavily fortified with a dividend yield that approaches almost 5% annually.

Las Vegas Sands Corp [NYSE: LVS] announced its quarterly earnings results on October 23rd. The casino operator reported $0.75 earnings per share (EPS) for the quarter, as per market expectations.

The Nevada-based company earned $0.77 EPS during the same quarter last year. The company generated $3.25 billion in revenue, slightly lower than analysts’ expectations of $3.30 billion.

Las Vegas Sands had a net margin of 13.86%, which is indicative of its healthy profit generating abilities but the firm’s revenue was down 3.6% compared to the same quarter last year.

The company announced a quarterly dividend of $0.77 per share, which represents a $3.08 dividend on an annualized basis and a yield of 4.97%. Its stock price has been found in the range of 47.39 to 69.60.

Analysts offering 12-month price forecasts for Las Vegas Sands Corp have a median target of 67.50, with a high estimate of 83.00 and a low estimate of 60.00.

Carnival Dividend Yields Over 4%

Carnival Corporation [NYSE: CCL] is currently the world’s largest travel leisure company, with 12 brands in its arsenal and a combined fleet of over 100 vessels. The company is a provider of vacations to all cruise destinations throughout the world.

For income-seeking investors, the Carnival dividend is a thing of beauty, currently over 4.5%. But is Carnival a buy?

Carnival Corporation [NYSE: CCL] posted its quarterly earnings results on September, 26th. The cruise operator reported $2.63 earnings per share (EPS) for the quarter, surpassing the consensus estimate of $2.53.

The company generated $6.53 billion in revenue for the quarter, topping consensus estimate of $6.18 billion. Carnival had a net margin of 14.93% and a net income of $3.15 billion for the quarter. Its Quick Ratio is 0.25 and Current Ratio is 0.30, which increases its risk factor.

The cruise behemoth announced a dividend of $0.50 per share, which translates into $2.00 annualized dividend and an annual dividend yield of 4.50%.

Carnival, facing headwinds from fluctuations in fuel prices and exchange rates as well as the U.S. government’s foreign policy changes, trimmed its FY 2019 earnings guidance. The company provided EPS guidance of $4.23-4.27 for the period, whereas it was once hoping to earn as much as $4.80 a share.

However, with the demand for cruise vacations holding steady, net income growing by mid-single-digit percentages, and strong advance bookings, the cruise operator’s stocks show a high growth potential.

Analysts offering 12-month target prices for Carnival’s stock have a median target of 52.40, with a high estimate of 59.00 and a low estimate of 38.00. This suggests a possible upside of 17.8% from the stock’s current price, making it a wise investment option.

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The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.