Top Dividend Stocks
(through Friday, May 20, 2022 market close)
Here are dividend paying US-listed stocks that meet or exceed our stringent criteria.
By Jeffrey Cohen, Investment Advisor Representative
Some stocks pay a consistent dividend that is a sustainable percentage of income and free cash flow (say 25% to 50%). As the company's earnings power grows, so does the dividend.
Other companies pay dividends on a one-time basis. They either generate excess operating income or perform a restructuring and wish to return capital to shareholders directly. An example is Macquarie Infrastructure Holdings LLC. They sold off a business and returned the money to shareholders (which is then taxed as income). The company did not wish to buy back stock or invest in growth opportunities.
Some investors prefer stocks that pay dividends despite the double taxation and the drain on company assets. The double taxation is because the company pays taxes on income, pays out a share of after-tax earnings to shareholders, and the shareholders then pay income tax (at a higher rate than capital gains) on the dividends.
As an example of double taxation from dividends, a dollar earned by a company yields $0.70 after corporate taxes. They pay the $0.70 to shareholders who then pay Federal and State taxes of 40% on that income, yielding a final amount of $0.42 (out of the original dollar), or a tax of 58%.
Avoiding double taxation:
Case 1: investing those earnings in growth (e.g., Amazon's strategy) so no tax would be paid and the company should grow future earnings. In that case, no tax is paid currently.
Case 2: the company earns the income, pays corporate taxes of $0.30, and uses the $0.70 (after taxes) to buy back shares of stock or pay back debt. The investor in theory could defer their share of the taxes indefinitely by not selling their shares, or sells them after a year and pays lower capital gains taxes as low as 15%. In this case, the tax paid in the current year is $0.30 or if the stocks were sold after a year, the current tax is $0.405.
This is a list of listed US common stocks based on their payout / average share price over the past year. This is actual, historical dividend yield for an owner of the stock every day for the past year. This is not a forward-looking dividend yield.
Our list of dividend paying stocks which have risk-return profiles better than the S&P 500 is limited. Do your due diligence, learn their stories, and decide where you will invest.
Other companies pay dividends on a one-time basis. They either generate excess operating income or perform a restructuring and wish to return capital to shareholders directly. An example is Macquarie Infrastructure Holdings LLC. They sold off a business and returned the money to shareholders (which is then taxed as income). The company did not wish to buy back stock or invest in growth opportunities.
Some investors prefer stocks that pay dividends despite the double taxation and the drain on company assets. The double taxation is because the company pays taxes on income, pays out a share of after-tax earnings to shareholders, and the shareholders then pay income tax (at a higher rate than capital gains) on the dividends.
As an example of double taxation from dividends, a dollar earned by a company yields $0.70 after corporate taxes. They pay the $0.70 to shareholders who then pay Federal and State taxes of 40% on that income, yielding a final amount of $0.42 (out of the original dollar), or a tax of 58%.
Avoiding double taxation:
Case 1: investing those earnings in growth (e.g., Amazon's strategy) so no tax would be paid and the company should grow future earnings. In that case, no tax is paid currently.
Case 2: the company earns the income, pays corporate taxes of $0.30, and uses the $0.70 (after taxes) to buy back shares of stock or pay back debt. The investor in theory could defer their share of the taxes indefinitely by not selling their shares, or sells them after a year and pays lower capital gains taxes as low as 15%. In this case, the tax paid in the current year is $0.30 or if the stocks were sold after a year, the current tax is $0.405.
This is a list of listed US common stocks based on their payout / average share price over the past year. This is actual, historical dividend yield for an owner of the stock every day for the past year. This is not a forward-looking dividend yield.
Our list of dividend paying stocks which have risk-return profiles better than the S&P 500 is limited. Do your due diligence, learn their stories, and decide where you will invest.
Our list of high quality, dividend paying stocks have 5 attributes:
1. US-listed stocks
2. Traded every day, passed data validation
3. Profitable, net income > 0
4. Efficiency (risk vs. return) > S&P 500 Index ETF
5. Dividends paid > S&P 500 Index ETF
Item four is based on our Chicago Quantum Net Score for each individual stock. This is a proprietary algorithm that compares the relative level of reward for risk.
There are no stocks that meet this criteria today. There used to be 9 of these stocks but US equity market conditions changed.
Seven stocks that come closest to meeting our criteria (in order):
CG Carlysle Group Inc.
AMP Ameriprise Financial Inc.
AVGO Broadcom Inc.
BLK Blackrock Inc.
TROW T. Rowe Price Group Inc.
DCUE Dominion Energy Inc.
TEL TE Connectivity Ltd
BX Blackstone Inc.
BCE BCE Inc (Bell Canada)
OTEX, SOLN and PNM round out the list of companies that score slightly lower than the $SPY but pay higher dividends.
Seven stocks that come closest to meeting our criteria (in order):
CG Carlysle Group Inc.
AMP Ameriprise Financial Inc.
AVGO Broadcom Inc.
BLK Blackrock Inc.
TROW T. Rowe Price Group Inc.
DCUE Dominion Energy Inc.
TEL TE Connectivity Ltd
BX Blackstone Inc.
BCE BCE Inc (Bell Canada)
OTEX, SOLN and PNM round out the list of companies that score slightly lower than the $SPY but pay higher dividends.
How we calculate dividends
This is a list of listed US common stocks based on their payout / average share price over the past year. This is actual, historical dividend yield for an owner of the stock every day for the past year. This is not a forward-looking dividend yield, which is what you typically see. We like this calculation better and use it in our platform.
Top stocks based on dividend payout (1 + dividend %, so 1.15 = 15% payout).
We calculate this by dividing the sum of dividends or distributions actually paid by the average closing price for the measurement period, plus 1.0. A stock with no dividend (1.00). As an example: stock ABC paid $1.20 last year, and had an average close price of $100. This is a 1.2% dividend yield, and would have a listed value of 1.012.
We added data validation filters, such as capitalization floor (e.g., $100M equity value, stock trades every day, stock price floor (e.g., $0.50), maximum and minimum BETA ranges, and more.
Do your due diligence, learn their stories, and decide where you will invest. Each of these stocks has a story.
This is a list of listed US common stocks based on their payout / average share price over the past year. This is actual, historical dividend yield for an owner of the stock every day for the past year. This is not a forward-looking dividend yield, which is what you typically see. We like this calculation better and use it in our platform.
Top stocks based on dividend payout (1 + dividend %, so 1.15 = 15% payout).
We calculate this by dividing the sum of dividends or distributions actually paid by the average closing price for the measurement period, plus 1.0. A stock with no dividend (1.00). As an example: stock ABC paid $1.20 last year, and had an average close price of $100. This is a 1.2% dividend yield, and would have a listed value of 1.012.
We added data validation filters, such as capitalization floor (e.g., $100M equity value, stock trades every day, stock price floor (e.g., $0.50), maximum and minimum BETA ranges, and more.
Do your due diligence, learn their stories, and decide where you will invest. Each of these stocks has a story.
Past dividends is not a guarantee of future dividends
You should not assume that a company will continue to pay dividends, nor pay them at the same rate. The decision to pay a dividend, and the amount paid, is based on earnings and availability of suitable investments available to the company. Companies change their dividend policies & dividend amounts frequently.
First, here are two examples.
$MIC is winding down their primary operations and distributed that value to shareholders. There is no future dividend or payout on that business, it was a one-time payment.
$MMAT (previously AeroCentury ACY) paid a one-time dividend to legacy shareholders as they emerged from bankruptcy.
Let’s look at three recent examples of companies that have stopped paying dividends.
You should not assume that a company will continue to pay dividends, nor pay them at the same rate. The decision to pay a dividend, and the amount paid, is based on earnings and availability of suitable investments available to the company. Companies change their dividend policies & dividend amounts frequently.
First, here are two examples.
$MIC is winding down their primary operations and distributed that value to shareholders. There is no future dividend or payout on that business, it was a one-time payment.
$MMAT (previously AeroCentury ACY) paid a one-time dividend to legacy shareholders as they emerged from bankruptcy.
Let’s look at three recent examples of companies that have stopped paying dividends.
- Boeing (BA) stopped paying dividends after COVID 19 and the 787 MAX crises to conserve cash while they wait for their commercial aircraft division to recover.
- The GEO Companies (GEO) stopped paying dividends once President Biden was elected as he mandated the Federal Government Department of Justice to stop using private prisons. The company planned for a business downturn and conserved cash.
- Macquarie Infrastructure Holdings LLC (MIC) sold a portion of its business, as did AeroCentury (ACY), and returned a portion of the cash received to shareholders in a one-time, taxable dividend. They send money as opposed to buying back stock or investing in a new business.
These are the top dividend paying stocks over the past year for companies. The figure is the actual dividends or distributions paid over the past 253 trading days (1 year) divided by the actual, average share price during that same period. It is an actual payment amount.
For example, a value of 1.10 means the company paid 10% of their average closing price in dividends last year.
For example, a value of 1.10 means the company paid 10% of their average closing price in dividends last year.
Positive Net Income:
ZIM Zim Integrated Shipping Services Ltd 1.48
LPG Dorian LPG Ltd 1.41
FF Futurefuel Corp 1.33
AFG American Financial Group Inc 1.32
PEGY Pineapple Energy Inc 1.28
RMR RMR Group Inc (The) 1.27
CVI CVR Energy Inc 1.25
VMW Vmware Inc. 1.23
IEP Icahn Enterprises L P 1.20
SBLK Star Bulk Carriers Corp 1.20
WHG Westwood Holdings Group Inc 1.17
QRTEA Qurate Retail Inc 1.15
TLYS Tillys Inc 1.15
UAN CVR Partners LP 1.15
FLMN Falcon Minerals Corp 1.14
USAC USA Compression Partners LP 1.14
FSP Franklin Street Properties Corp. 1.13
CHMI Cherry Hill Mortgage Investment Corporation 1.13
EGLE Eagle Bulk Shipping Inc 1.13
KNOP KNOT Offshore Partners LP 1.13
CYD China Yuchai International 1.13
DHIL Diamond Hill Investment Group Inc. 1.13
DMLP Dorchester Minerals LP 1.12
KEN Kenon Holdings Ltd 1.12
MTMT Mega Matrix Corp 1.12
FLNG Flex Lng Ltd 1.12
TWO Two Harbors Investment Corp 1.12
RC Ready Capital Corp 1.12
ICL ICL Group Ltd 1.12
NLY Annaly Capital Management Inc 1.12
BSET Bassett Furniture Industries Inc. 1.11
KRP Kimbell Royalty Partners LP 1.11
GPP Green Plains Partners LP 1.11
PCH PotlatchDeltic Corp 1.11
CAPL CrossAmerica Partners LP 1.11
CM Canadian Imperial Bank Of Commerce 1.11
GNL Global Net Lease Inc 1.10
DX Dynex Capital Inc. 1.10
ARI Apollo Commercial Real Estate Finance Inc 1.10
TTSH Tile Shop Hldgs Inc 1.10
GLP Global Partners LP 1.10
GNK Genco Shipping & Trading Limited 1.10
AMSF Amerisafe Inc 1.10
ORI Old Republic International Corp. 1.10
CIM Chimera Investment Corp 1.10
MPLX MPLX LP 1.10
RTLR Rattler Midstream Lp 1.10
PRPH ProPhase Labs Inc 1.10
SHLX Shell Midstream Partners L.P. 1.10
IFS Intercorp Financial Services Inc 1.10
SACH Sachem Capital Corp 1.10
SIRE Sisecam Resources LP 1.10
ZIM Zim Integrated Shipping Services Ltd 1.48
LPG Dorian LPG Ltd 1.41
FF Futurefuel Corp 1.33
AFG American Financial Group Inc 1.32
PEGY Pineapple Energy Inc 1.28
RMR RMR Group Inc (The) 1.27
CVI CVR Energy Inc 1.25
VMW Vmware Inc. 1.23
IEP Icahn Enterprises L P 1.20
SBLK Star Bulk Carriers Corp 1.20
WHG Westwood Holdings Group Inc 1.17
QRTEA Qurate Retail Inc 1.15
TLYS Tillys Inc 1.15
UAN CVR Partners LP 1.15
FLMN Falcon Minerals Corp 1.14
USAC USA Compression Partners LP 1.14
FSP Franklin Street Properties Corp. 1.13
CHMI Cherry Hill Mortgage Investment Corporation 1.13
EGLE Eagle Bulk Shipping Inc 1.13
KNOP KNOT Offshore Partners LP 1.13
CYD China Yuchai International 1.13
DHIL Diamond Hill Investment Group Inc. 1.13
DMLP Dorchester Minerals LP 1.12
KEN Kenon Holdings Ltd 1.12
MTMT Mega Matrix Corp 1.12
FLNG Flex Lng Ltd 1.12
TWO Two Harbors Investment Corp 1.12
RC Ready Capital Corp 1.12
ICL ICL Group Ltd 1.12
NLY Annaly Capital Management Inc 1.12
BSET Bassett Furniture Industries Inc. 1.11
KRP Kimbell Royalty Partners LP 1.11
GPP Green Plains Partners LP 1.11
PCH PotlatchDeltic Corp 1.11
CAPL CrossAmerica Partners LP 1.11
CM Canadian Imperial Bank Of Commerce 1.11
GNL Global Net Lease Inc 1.10
DX Dynex Capital Inc. 1.10
ARI Apollo Commercial Real Estate Finance Inc 1.10
TTSH Tile Shop Hldgs Inc 1.10
GLP Global Partners LP 1.10
GNK Genco Shipping & Trading Limited 1.10
AMSF Amerisafe Inc 1.10
ORI Old Republic International Corp. 1.10
CIM Chimera Investment Corp 1.10
MPLX MPLX LP 1.10
RTLR Rattler Midstream Lp 1.10
PRPH ProPhase Labs Inc 1.10
SHLX Shell Midstream Partners L.P. 1.10
IFS Intercorp Financial Services Inc 1.10
SACH Sachem Capital Corp 1.10
SIRE Sisecam Resources LP 1.10
Negative net income:
ECVT Ecovyst Inc 1.28
GOGL Golden Ocean Group Limited 1.26
ORC Orchid Island Capital Inc 1.18
XBIT XBiotech Inc 1.17
IVR Invesco Mortgage Capital Inc 1.13
EARN Ellington Residential Mortgage REIT 1.13
SRLP Sprague Resources LP 1.11
RTL Necessity Retail REIT Inc (The) 1.11
NS Nustar Energy L P 1.10
AGNC AGNC Investment Corp 1.10
SWI SolarWinds Corp 1.10
ECVT Ecovyst Inc 1.28
GOGL Golden Ocean Group Limited 1.26
ORC Orchid Island Capital Inc 1.18
XBIT XBiotech Inc 1.17
IVR Invesco Mortgage Capital Inc 1.13
EARN Ellington Residential Mortgage REIT 1.13
SRLP Sprague Resources LP 1.11
RTL Necessity Retail REIT Inc (The) 1.11
NS Nustar Energy L P 1.10
AGNC AGNC Investment Corp 1.10
SWI SolarWinds Corp 1.10