Experts on retirement living talk about the 4% rule, which means, either earn 4% a year to avoid eating into savings or don't spend more than 4% when interest and savings combined are calculated.
Either way, that is a tall order, considering the level of interest rates. Think about how one's lifestyle would be improved with a 6% yield on the dividend portfolio.
However, reaching for yield is risky, so consider this, instead: A dividend-paying stock with a yield of 3% that is growing 15% annually will double an investor's monthly income in 4.8 years.
High-quality dividend stocks that offer investors this combination of yield and growth tend to enjoy a decent amount of appreciation to their stock prices.
And their dividend safety scores show a surprisingly low level of risk. Each of the seven stocks below yields at least 3% and has increased its dividend by at least 15% a year over the past five years.
Let's take a closer look at them here...
Occidental Petroleum -- Yield: 4.09%
Occidental Petroleum (NYSE:OXY) employs 11,100 people, generates revenue of $12,598.00 million and has a net income of $-8,354.00 million. The current market capitalization stands at $57.68 billion.Occidental Petroleum’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $5,145.00 million. The EBITDA margin is 40.84% (the operating margin is -76.50% and the net profit margin -66.31%).
Financials: The total debt represents 19.13% of Occidental Petroleum assets and the total debt in relation to the equity amounts to 34.11%. Due to the financial situation, a return on equity of -27.47% was realized by Occidental Petroleum.
Twelve trailing months earnings per share reached a value of $-10.86. Last fiscal year, Occidental Petroleum paid $2.97 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is not calculable, the P/S ratio is 4.51 and the P/B ratio is finally 2.33. The dividend yield amounts to 4.09%.
Stock Charts:
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| Long-Term Stock Price Chart of Occidental Petroleum (OXY) |
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| Long-Term Dividend Payment History of Occidental Petroleum (OXY) |
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| Long-Term Dividend Yield History of Occidental Petroleum (OXY) |
Intl. Business Machines -- Yield: 3.49%
Intl. Business Machines (NYSE:IBM) employs 377,757 people, generates revenue of $81,741.00 million and has a net income of $13,364.00 million. The current market capitalization stands at $154.50 billion.Intl. Business Machines’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $19,536.00 million. The EBITDA margin is 23.90% (the operating margin is 18.67% and the net profit margin 16.35%).
Financials: The total debt represents 36.10% of Intl. Business Machines assets and the total debt in relation to the equity amounts to 279.69%. Due to the financial situation, a return on equity of 102.29% was realized by Intl. Business Machines.
Twelve trailing months earnings per share reached a value of $12.31. Last fiscal year, Intl. Business Machines paid $5.00 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.12, the P/S ratio is 1.88 and the P/B ratio is finally 10.88. The dividend yield amounts to 3.49%.
Stock Charts:
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| Long-Term Stock Price Chart of Intl. Business Machines (IBM) |
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| Long-Term Dividend Payment History of Intl. Business Machines (IBM) |
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| Long-Term Dividend Yield History of Intl. Business Machines (IBM) |
QUALCOMM -- Yield: 3.47%
QUALCOMM (NASDAQ:QCOM) employs 33,000 people, generates revenue of $25,281.00 million and has a net income of $5,268.00 million. The current market capitalization stands at $90.47 billion.QUALCOMM’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7,350.00 million. The EBITDA margin is 29.07% (the operating margin is 22.12% and the net profit margin 20.84%).
Financials: The total debt represents 21.59% of QUALCOMM assets and the total debt in relation to the equity amounts to 34.91%. Due to the financial situation, a return on equity of 14.93% was realized by QUALCOMM.
Twelve trailing months earnings per share reached a value of $3.41. Last fiscal year, QUALCOMM paid $1.80 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.88, the P/S ratio is 3.56 and the P/B ratio is finally 2.96. The dividend yield amounts to 3.47%.
Stock Charts:
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| Long-Term Stock Price Chart of QUALCOMM (QCOM) |
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| Long-Term Dividend Payment History of QUALCOMM (QCOM) |
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| Long-Term Dividend Yield History of QUALCOMM (QCOM) |
Boeing -- Yield: 3.31%
Boeing (NYSE:BA) employs 161,400 people, generates revenue of $96,114.00 million and has a net income of $5,176.00 million. The current market capitalization stands at $82.02 billion.Boeing’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $8,751.00 million. The EBITDA margin is 9.10% (the operating margin is 7.74% and the net profit margin 5.39%).
Financials: The total debt represents 10.55% of Boeing assets and the total debt in relation to the equity amounts to 157.28%. Due to the financial situation, a return on equity of 68.96% was realized by Boeing.
Twelve trailing months earnings per share reached a value of $5.45. Last fiscal year, Boeing paid $3.82 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 24.10, the P/S ratio is 0.86 and the P/B ratio is finally 13.88. The dividend yield amounts to 3.31%.
Stock Charts:
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| Long-Term Stock Price Chart of Boeing (BA) |
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| Long-Term Dividend Payment History of Boeing (BA) |
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| Long-Term Dividend Yield History of Boeing (BA) |
Target Corporation -- Yield: 3.24%
Target Corporation (NYSE:TGT) employs 341,000 people, generates revenue of $73,785.00 million and has a net income of $3,321.00 million. The current market capitalization stands at $43.81 billion.Target Corporation’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $7,124.00 million. The EBITDA margin is 9.66% (the operating margin is 7.49% and the net profit margin 4.50%).
Financials: The total debt represents 31.69% of Target Corporation assets and the total debt in relation to the equity amounts to 98.48%. Due to the financial situation, a return on equity of 24.64% was realized by Target Corporation.
Twelve trailing months earnings per share reached a value of $5.29. Last fiscal year, Target Corporation paid $2.20 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.02, the P/S ratio is 0.59 and the P/B ratio is finally 3.44. The dividend yield amounts to 3.24%.
Stock Charts:
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| Long-Term Stock Price Chart of Target Corporation (TGT) |
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| Long-Term Dividend Payment History of Target Corporation (TGT) |
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| Long-Term Dividend Yield History of Target Corporation (TGT) |
Carnival -- Yield: 3.07%
Carnival (NYSE:CCL) employs 92,200 people, generates revenue of $15,714.00 million and has a net income of $1,757.00 million. The current market capitalization stands at $34.82 billion.Carnival’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,200.00 million. The EBITDA margin is 26.73% (the operating margin is 16.38% and the net profit margin 11.18%).
Financials: The total debt represents 22.39% of Carnival assets and the total debt in relation to the equity amounts to 36.97%. Due to the financial situation, a return on equity of 7.32% was realized by Carnival.
Twelve trailing months earnings per share reached a value of $2.89. Last fiscal year, Carnival paid $1.10 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.95, the P/S ratio is 2.17 and the P/B ratio is finally 1.48. The dividend yield amounts to 3.07%.
Stock Charts:
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| Long-Term Stock Price Chart of Carnival (CCL) |
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| Long-Term Dividend Payment History of Carnival (CCL) |
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| Long-Term Dividend Yield History of Carnival (CCL) |
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