Dividends: some people think they’re totally meaningless, and other people view them as central to their investing strategy.
Goldman Sachs (GS) has a new piece of research aimed at the latter.
First, here’s a chart indicating where you should begin your hunt.
So, telecom, utilities, beverage/food/tobacco, pharama all are obvious, solid choices.
But of course, a fat dividend could be a big red flag that something’s wrong, so you can just chase the highest yield.
What does Goldman recommend?
- Companies with at least 3% yield.
- Companies with a consistent dividend history.
- A likelihood of dividend growth.
- No companies with FCF yield below 5%
- No companies with debt-to-equity greater than 100%
- Only companies that are “buy-rated” (seems a little tautological to us)
Anyway, here are the names they found through their screening:
For another take, here’s a list of companies where the dividend is higher than the bond yield — always an interesting situation.