Credit Suisse: These Are The 20 Stocks That Are Better Than Bonds

MG SBB Deck

Photo: Eric Platt/Business Insider

Credit Suisse is out with a list of 20 stocks that reward investors with greater dividend payments than bonds. The group averages dividend yields of 4.2%, with year-to-date returns on the underlying stock averaging a remarkable 13.3%.

Credit Suisse analyst Michael Kassab relied upon four key metrics to pare down the list to strong balance sheet and low volatile companies.

The requirements:

  • Dividend yield above 2.75%
  • Three-year beta versus the S&P 500 less than 0.85
  • Market capitalisation of $15 billion or greater
  • S&P credit rating of BBB or higher

After applying the screen to the entirety of the S&P 500, only 40 firms made the cut. Credit Suisse then narrowed the list based on various weights. Ultimately, it’s much less diverse than the S&P overall, with major exposure to health care, utilities and consumer staples.

If you didn’t already guess, volatility over the past year kept every financial off the list.

Goldman has its own list of global quality stocks.
Click here to see the companies that made the list >

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.