With market expectations of further interest rate increases by the Federal Reserve, US bond yields continue to rise, and high dividend stocks in energy, finance, materials and other sectors have once again become the target of the US stock market.
Analysts at UBS saidEven if interest rates continue to rise and the economy falls into recession and inflation is still difficult to contain, investors seeking safe havens in dividend-paying stocks should still do well.
George Ball, chairman of Sanders Morris Harris, an asset management investment company, also saidThe company has adjusted a large portion of its clients' portfolios to stocks with "excellent earnings prospects" and "paying higher dividends" in the coming quarters.
To a certain extent, high-interest stocks can be attacked and retreated, which is the choice of many sound investors. If the high dividend strategy continues to work, which stocks are worth watching? Futu Information has sorted out the latest US stocks with the highest dividend yield for cattle friends' reference.
Stocks in the top 1500 by market capitalization, with a latest dividend yield of more than 4 per cent, dividend coverage of more than 2 per cent, debt ratios of less than 150 per cent and whose share prices have outperformed the broader market over the past year.
In addition to the common dividend yields, how do the dividend coverage and debt ratios mentioned above help to screen high-dividend stocks?
Dividend coverage measures the number of times a company can pay its current level of dividend to shareholders. A ratio above 2 is considered healthy, while a rate below 1.5 may cause concern.
The debt ratio refers to how much of a company's total assets are liabilities (borrowed money). The lower the debt ratio, the lower the company's dependence on debt, and the smaller the company's risk; if the debt ratio is too high, it means that the company has more debt and higher debt service risk.
Edit / Corrine