Advertisement
Singapore markets open in 6 hours 21 minutes
  • Straits Times Index

    3,313.48
    +8.49 (+0.26%)
     
  • S&P 500

    5,303.27
    +6.17 (+0.12%)
     
  • Dow

    40,003.59
    +134.19 (+0.34%)
     
  • Nasdaq

    16,685.97
    -12.33 (-0.07%)
     
  • Bitcoin USD

    66,616.88
    -193.55 (-0.29%)
     
  • CMC Crypto 200

    1,360.35
    -13.49 (-0.98%)
     
  • FTSE 100

    8,420.26
    -18.39 (-0.22%)
     
  • Gold

    2,419.80
    +34.30 (+1.44%)
     
  • Crude Oil

    80.00
    +0.77 (+0.97%)
     
  • 10-Yr Bond

    4.4200
    +0.0430 (+0.98%)
     
  • Nikkei

    38,787.38
    -132.92 (-0.34%)
     
  • Hang Seng

    19,553.61
    +177.11 (+0.91%)
     
  • FTSE Bursa Malaysia

    1,616.62
    +5.51 (+0.34%)
     
  • Jakarta Composite Index

    7,317.24
    +70.54 (+0.97%)
     
  • PSE Index

    6,618.69
    -9.51 (-0.14%)
     

Time to Buy These Popular High-Dividend Yielding Stocks?

Three stocks that are able to lure investors in with their lofty dividends are Simon Property Group (SPG), Altria (MO), and OneMain Holdings (OMF).

Their steady bottom lines and dividend yields over 5% are often too compelling to overlook but let’s see if now is a good time to buy these popular stocks.

Overview & Dividend Comparison

OneMain’s dividend yield tops this list at 9.99% with the financial holding company offering personal loan products, credit cards, and optional credit insurance among other services.  

Most enticing about OneMain’s dividend is the 50.39% annualized growth over the last years with seven increases during this time span.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

ADVERTISEMENT

Big tobacco producer Altria has a 9.30% dividend yield at the moment that tops real estate titan Simon Property Group’s 6.98% but both are enticingly above the S&P 500’s  1.49% average.

Altria has tapped into smokeless tobacco growing its dividend by a modest 3.84% over the last five years while Simon Property Group’s yield has decreased -4.45% as the company reserves more capital with its leasing clients of shopping, dining, and entertainment centers still regaining their post-pandemic footing.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Performance & Valuation

OneMain’s stock is up +20% this year taking the edge in performance with Simon Property Group and Altria’s stock down roughly -8% each. When including dividends, OneMain’s total return is +29% to beat the S&P 500’s +14% while easily topping Altria’s -2% and Simon Property Group’s -3%.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

All three stocks could make the case for being undervalued with OneMain taking the edge here as well at a 7.1X forward earnings multiple and well below the benchmark’s 20.1X despite largely outperforming the broader market.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

However, Simon Property Group and Altria trade reasonably as well at 9X forward earnings and 8.4X respectively.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Bottom Line

With the earnings outlook for Simon Property Group, Altria, and OneMain Holdings being stable for the foreseeable future these popular dividend stocks all land a Zacks Rank #3 (Hold) considering their stellar yields and attractive P/E valuations.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Simon Property Group, Inc. (SPG) : Free Stock Analysis Report

Altria Group, Inc. (MO) : Free Stock Analysis Report

OneMain Holdings, Inc. (OMF) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research