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.
- 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.