$S&P Companies With High Dividend Rankiings

Companies listed in this Barron’s piece from over a week ago: $BKR $MMM $MCD $MDT $HBAN $IBM $DUK

Barron’s headline: Dividend Stocks With the Biggest Payout Ratios Outperform Buybacks


For more than 20 years, stocks with strong dividend payout ratios have acquitted themselves well against two important groups: companies that pay less of their earnings in dividends and firms that repurchase a lot of their shares.

That’s the conclusion of a recent research note by Credit Suisse.

“Companies that are returning more of their excess capital to shareholders in the form of dividends have historically seen—and are continuing to see—incredibly strong performance,” says Patrick Pelfrey, co-head of quantitative research at Credit Suisse. “This is in contrast to buybacks, which are often viewed by market participants as a driver of share prices.”

A dividend payout ratio, in this case the percentage of earnings per share paid out in dividends, is a widely used metric by investors to get a sense of how much is being distributed to shareholders. The accompanying table includes a sample of companies that have high rankings for dividend payouts.