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Buy-Rated High Yield Stocks

For about three months' time, the results are definitely acceptable. I need to emphasize that the overall market was higher and by comparison, the SPDR S&P 500 (SPY) was up 6.91%. It's not a true apples-to-apples comparison, because the dividend yield from the above stocks is higher than the average of the S&P 500, but we can see they outperformed the major benchmark index.

I remain bullish on Johnson & Johnson, but the chart is telling me it's time to take some off the table. I don't know that JNJ won't go higher, and indeed, often the biggest move is the last move; however, trees don't grow into the sky and stocks don't go straight up for long.

The odds are in your favor if you either take some gains or hedge your position and sell in the money calls against some of your shares.

Here is my new list of stocks that are high yielding and rising dividend payers. The truth is, any dividend paying stock is almost a high yielding stock compared to allowing your money to sit in cash, but these are what I consider the cream of the crop at this time. AMAT Dividend Yield Chart AMAT Dividend Yield data by YCharts

Applied Materials

Background: Applied Materials provides equipment, services and software to the semiconductor, flat panel display, solar photovoltaic and related industries worldwide. The company's Silicon Systems Group segment makes equipment to fabricate semiconductor chips or integrated circuits.

52 Week Range: $9.95 to $13.99

Book Value: $5.95

Price To Book: 2.3

Earnings Payout Percentage: 75%

Applied Materials currently has an annualized dividend of 40 cents, yielding 3%. The payout rate is higher than I would normally allow, but next year's average earnings estimate of $1.06 brings the payout rate less than 40%. I consider a payout rate under 50% forward earnings to be relatively safe.

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AMAT $22.83 1.90%
BX $38.00 1.10%
GE $24.85 0.20%
JNJ $100.30 0.16%
T $32.75 -0.21%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

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