3 Large Cap Stocks With High Yields and Low PE Ratios
Today, I want to take a look at several large cap stocks that currently have yields over 3% but also sport low PE Ratios of 10 or less. Looking at some stocks that fit these metrics will provide us with some good companies that would have potential for great additions in a long term buy and hold dividend growth portfolio.
I have chosen 3 company stocks that come from different sectors and industries so that will allow us some options of diversity if we do decide to purchase any of these.
So let’s take a look at what I found:
General Motors – (GM)
Market Cap: $52.09B
Dividend Yield: 4.12%
PE Ratio: 5.75
Sector: Consumer Goods
Industry: Auto Manufacturers – Major
MetLife – (MET)
Market Cap: $46.20B
Dividend Yield: 3.60%
PE Ratio: 9.51
Industry: Life Insurance
Walgreens Boots Alliance – (WBA)
Market Cap: $48.25B
Dividend Yield: 3.36%
PE Ratio: 10.48
Industry: Drug Stores
Now that we have looked at 3 different large cap companies with high yields and low PE ratios, the question becomes which one would make the best investment.
General Motors future is uncertain with the difficulties that the trade war with China is creating. Metlife seems to be positioning themselves for growth in revenue for many years to come. Walgreens Boots Alliance future could be perceived as uncertain with the emergence of Amazon in the pharmaceutical industry. Despite a couple of these companies having some headwinds I do think that they will be fine over the long term.
While you could probably buy any of them and would get a decent return over the long term, if I were buying one for the More Dividends portfolio it would probably be Metlife. I base this decision on the following factors. I don’t currently hold any insurance companies in my portfolio and they seem to have the most tailwind behind them for future growth. Being an insurance company, Metlife is collecting premiums on policies that they may or may not have to pay out on in the future. If interest rates do continue to move upward they will be able to get an even larger return on their investments that they make with the money that the earn on the policies that they have issued.
Of the 3 companies that we discussed today, which 1 would you be most likely to invest in to add into your portfolio?
As always I look forward to reading all of your comments and questions, until then….. happy investing!
-Jason from MoreDividends.com
Be sure and follow me on your favorite social media platform:
MoreDividendsdotcom on Facebook & @MoreDividends on Twitter
If you would like to receive an email whenever I publish a new article:
Interesting, interesting. I was not expecting GM to be on the list. I guess the valuation is lower than I realized. Thanks for taking the time to put this analysis together, along with the detail.
Dividend Diplomats recently posted…Bert’s Dividend Stock Watch List – June and July 2019
I was very surprised that it was on the list as well. It was ranked very high so I felt compelled to make sure that it was a part of the analysis. Thanks for stopping by Bert!