Published on October 16th, 2019 by Nate Parsh
Some investors are very focused on owning stocks with very high dividend yields. The attraction to high yields makes sense as they provide shareholders with much higher income than do lower-yielding stocks. You can see our full list of stocks offering at least a 5% dividend yield here.
You can also download your full list of all 300+ securities with 5%+ yields below to save for future reference.
You can see a preview of these 300+ securities in the table below.
Ticker Name Price Dividend Yield Market Cap ($M) P/E Ratio Payout Ratio
UMH
UMH Properties, Inc.
14.37
5.0
581.0
-12.3
-61.9
UBCP
United Bancorp, Inc. (Ohio)
11.51
4.6
68.1
11.7
54.6
WY
Weyerhaeuser Co.
27.23
5.0
20,284.4
5,919.6
29,565.2
ABEV
Ambev SA
4.52
0.0
71,114.5
24.1
0.0
NHI
National Health Investors, Inc.
82.93
4.9
3,595.9
23.0
113.7
CLB
Core Laboratories NV
44.55
4.9
1,976.4
21.7
107.1
AVH
Avianca Holdings SA
3.84
0.0
163.4
-1.0
0.0
XOM
Exxon Mobil Corp.
69.42
4.8
293,723.7
16.7
80.2
DRH
DiamondRock Hospitality Co.
9.92
5.0
1,986.0
21.9
110.4
CTT
CatchMark Timber Trust, Inc.
10.79
5.0
528.8
-3.0
-14.9
AMCR
Amcor Plc
9.59
0.0
15,487.5
16.8
0.0
RMCF
Rocky Mountain Chocolate Factory, Inc.
9.27
5.2
55.6
21.3
110.5
PBA
Pembina Pipeline Corp.
35.64
4.9
18,229.9
15.5
75.6
ORAN
Orange SA
16.32
0.0
43,293.1
17.2
0.0
CUK
Carnival Plc
40.49
4.9
7,469.9
9.1
45.1
HNNA
Hennessy Advisors, Inc.
11.20
3.8
84.0
7.2
27.5
OUT
OUTFRONT Media, Inc.
27.20
5.3
3,898.9
24.2
128.1
IP
International Paper Co.
41.42
4.8
16,271.3
10.4
49.7
RESI
Front Yard Residential Corp.
11.64
5.2
626.5
-5.0
-25.6
QIWI
Qiwi Plc
19.34
2.8
267.5
16.5
46.2
BRY
Berry Petroleum Corp.
9.91
4.5
802.4
11.3
51.3
ALX
Alexander's, Inc.
353.09
5.1
1,803.2
33.4
170.2
BDN
Brandywine Realty Trust
14.48
5.2
2,545.8
29.0
150.2
SMFG
Sumitomo Mitsui Financial Group, Inc.
6.95
0.0
47,109.3
7.5
0.0
VICI
VICI Properties, Inc.
23.12
5.0
10,658.5
15.8
78.7
SRC
Spirit Realty Capital, Inc.
48.04
5.2
4,328.8
25.4
132.3
CRWS
Crown Crafts, Inc.
6.47
4.9
65.5
11.2
55.4
LND
BrasilAgro Cia Brasileira de Propriedades Agricolas
4.31
4.7
231.9
5.2
24.3
OSB
Norbord, Inc.
23.52
19.1
1,921.6
23.6
450.8
DOC
Physicians Realty Trust
17.52
5.3
3,246.8
63.2
332.0
CMP
Compass Minerals International, Inc.
56.88
5.1
1,927.3
32.7
165.8
SGU
Star Group LP
9.42
5.1
464.2
21.9
111.2
HAFC
Hanmi Financial Corp.
18.18
5.3
566.7
12.7
67.3
UMPQ
Umpqua Holdings Corp.
15.98
5.3
3,518.8
9.9
51.8
TPR
Tapestry, Inc.
25.52
5.3
7,345.4
11.5
60.7
XHR
Xenia Hotels & Resorts, Inc.
20.81
5.3
2,344.1
17.0
89.7
RPAI
Retail Properties of America, Inc.
12.86
5.2
2,747.6
41.5
213.9
NYCB
New York Community Bancorp, Inc.
13.02
5.2
6,085.1
16.9
88.4
UFS
Domtar Corp.
34.21
5.1
2,141.0
7.6
39.0
APO
Apollo Global Management, Inc.
39.40
4.8
15,868.9
33.4
161.9
PPL
PPL Corp.
31.92
5.2
23,054.1
12.9
66.7
MPW
Medical Properties Trust, Inc.
19.66
5.1
8,774.1
7.5
38.2
WRK
WestRock Co.
36.25
5.0
9,328.6
11.1
55.1
HSBC
HSBC Holdings Plc
38.60
6.6
156,409.5
11.0
73.0
CM
Canadian Imperial Bank of Commerce
83.44
5.0
37,167.3
9.7
48.3
RLGY
Realogy Holdings Corp.
7.38
4.9
843.7
19.1
93.2
KFFB
Kentucky First Federal Bancorp
7.34
5.4
61.0
75.3
410.3
SITC
SITE Centers Corp.
14.94
5.4
2,697.6
481.9
2,580.6
UBP
Urstadt Biddle Properties, Inc.
18.69
5.9
744.9
30.5
178.8
LAZ
Lazard Ltd.
37.75
4.7
4,034.8
11.3
53.8
T
AT&T, Inc.
37.90
5.4
276,935.3
15.9
85.1
KIM
Kimco Realty Corp.
20.69
5.4
8,735.7
25.7
139.2
AYR
Aircastle Ltd.
22.89
5.2
1,715.6
8.5
43.6
VER
VEREIT, Inc.
9.69
5.7
10,345.9
39.6
225.0
GILT
Gilat Satellite Networks Ltd.
8.33
0.0
461.8
22.8
0.0
WRI
Weingarten Realty Investors
28.95
5.5
3,725.0
16.9
92.3
BHP
BHP Group Ltd.
48.68
5.5
71,674.0
14.3
78.0
CAJ
Canon, Inc.
26.87
0.0
28,585.2
17.6
0.0
NAVI
Navient Corp.
12.01
5.3
2,768.2
6.3
33.8
LVS
Las Vegas Sands Corp.
57.31
5.3
44,116.6
22.9
121.6
TESS
TESSCO Technologies, Inc.
14.98
5.3
127.6
66.3
353.8
BBDC
Barings BDC, Inc.
10.11
3.8
508.7
-5.2
-19.6
ANF
Abercrombie & Fitch Co.
15.32
5.2
963.0
14.5
75.5
BIG
Big Lots, Inc.
22.14
5.4
863.8
7.2
38.9
BRX
Brixmor Property Group, Inc.
20.59
5.4
6,132.6
17.3
93.9
SELF
Global Self Storage, Inc.
4.62
5.6
35.7
72.2
406.3
IX
ORIX Corp.
77.34
0.0
19,826.7
7.0
0.0
POPE
Pope Resources LP
70.88
5.4
308.7
49.4
264.8
EQNR
Equinor ASA
18.33
0.0
61,007.9
7.5
0.0
PEB
Pebblebrook Hotel Trust
26.55
5.7
3,468.3
-65.9
-377.2
UVV
Universal Corp.
52.94
5.7
1,322.0
14.3
81.4
EC
Ecopetrol SA
17.41
0.0
35,792.1
9.6
0.0
KSS
Kohl's Corp.
51.45
5.0
8,187.1
11.3
56.1
SPG
Simon Property Group, Inc.
148.89
5.4
98,688.2
21.2
115.6
VIV
Telefonica Brasil SA
12.86
8.4
14,394.7
11.4
95.6
ATV
Acorn International, Inc.
17.66
8.3
45.6
4.5
36.8
ABBV
AbbVie, Inc.
74.50
5.6
110,146.8
27.3
153.0
NGG
National Grid Plc
56.78
5.4
39,525.1
19.6
105.4
IGT
International Game Technology Plc
14.03
5.7
2,868.2
-83.3
-474.8
NTRSP
Northern Trust Corp.
25.42
0.0
5,462.5
NEXA
Nexa Resources SA
10.12
5.9
1,348.1
20.0
118.8
ORIT
Oritani Financial Corp.
18.18
5.5
819.9
15.4
84.6
BSMX
Banco Santander Mexico SA Institucion de Banca Multiple
6.81
0.0
4,525.5
8.6
0.0
SSL
Sasol Ltd.
19.06
3.8
11,907.0
9.9
37.3
EPR
EPR Properties
76.83
5.7
5,958.7
22.7
130.3
CVA
Covanta Holding Corp.
16.26
6.2
2,137.1
-61.8
-380.4
GOGL
Golden Ocean Group Ltd.
5.88
5.5
848.3
46.7
258.1
TIGO
Millicom International Cellular SA
47.99
5.5
4,852.9
-124.2
-683.4
BBAR
BBVA Banco Francés SA
4.30
0.0
878.1
1.8
0.0
PETS
PetMed Express, Inc.
18.73
5.8
377.9
12.5
72.1
FCAU
Fiat Chrysler Automobiles NV
13.30
5.6
20,846.2
5.5
30.7
TEO
Telecom Argentina SA
10.79
2.5
1,363.1
12.7
31.6
TGP
Teekay LNG Partners LP
13.81
4.4
1,082.7
24.8
109.7
MAIN
Main Street Capital Corp.
42.14
5.7
2,660.5
16.4
93.0
VIRT
Virtu Financial, Inc.
16.46
5.8
3,137.5
33.7
196.2
ODP
Office Depot, Inc.
1.88
5.3
1,027.2
34.9
185.5
KHC
The Kraft Heinz Co.
27.49
7.5
33,537.5
-3.0
-22.5
CG
The Carlyle Group LP
26.47
4.8
9,032.7
10.3
49.3
IPHS
Innophos Holdings, Inc.
34.92
5.5
687.6
23.6
129.8
TK
Teekay Corp.
4.71
0.0
474.7
-3.1
0.0
GPS
Gap, Inc.
17.32
5.6
6,508.6
7.0
39.4
GCI
Gannett Co., Inc.
10.71
6.0
1,228.2
88.1
526.3
PM
Philip Morris International, Inc.
78.32
5.8
121,853.4
15.6
90.7
TOT
Total SA
51.03
0.0
132,776.5
12.1
0.0
GEF.B
Greif, Inc.
45.72
3.8
2,206.7
12.3
47.5
RIO
Rio Tinto Plc
51.40
6.5
64,744.9
6.5
41.9
UG
United-Guardian, Inc.
18.82
5.8
86.5
20.6
120.3
BRT
BRT Apartments Corp.
16.00
5.0
254.4
-15.0
-74.9
TFSL
TFS Financial Corp.
18.38
5.4
5,146.1
63.6
345.9
DBI
Designer Brands, Inc.
16.68
6.0
1,211.7
23.9
143.5
TEF
Telefónica SA
7.77
0.0
39,747.1
10.7
0.0
TRTN
Triton International Ltd.
34.19
6.1
2,526.0
7.8
47.6
ILPT
Industrial Logistics Properties Trust
21.24
6.2
1,382.5
20.8
129.3
AROC
Archrock, Inc.
9.71
5.4
1,475.7
23.6
128.4
KRO
Kronos Worldwide, Inc.
11.74
6.0
1,359.6
11.7
69.7
PDCO
Patterson Cos., Inc.
17.32
6.0
1,655.0
13.7
82.4
MGP
MGM Growth Properties LLC
29.91
6.1
2,775.6
29.5
179.2
DOW
Dow, Inc.
47.20
0.0
35,079.6
WDR
Waddell & Reed Financial, Inc.
15.34
6.5
1,121.0
7.5
48.7
MMP
Magellan Midstream Partners LP
65.28
6.0
14,910.1
10.9
65.6
PSXP
Phillips 66 Partners LP
56.24
5.7
12,706.8
12.5
71.4
OHI
Omega Healthcare Investors, Inc.
43.41
6.1
9,476.0
34.0
206.8
TSCAP
TriState Capital Holdings, Inc.
27.20
0.0
797.7
NVEC
NVE Corp.
65.10
6.1
315.5
22.3
136.8
OHAI
OHA Investment Corp.
1.31
6.1
26.4
-2.4
-14.6
PEGI
Pattern Energy Group, Inc.
26.38
6.4
2,591.6
-41.2
-263.5
SLB
Schlumberger NV
32.81
6.1
45,376.6
21.7
132.5
CEO
CNOOC Ltd.
151.01
5.5
67,422.2
8.0
44.3
EPD
Enterprise Products Partners LP
27.68
6.3
60,591.8
12.0
75.1
FLXS
Flexsteel Industries, Inc.
14.72
6.0
116.6
-3.6
-21.3
INN
Summit Hotel Properties, Inc.
12.05
6.0
1,266.8
13.8
82.7
E
Eni SpA
30.28
4.4
54,465.5
13.5
59.3
FUN
Cedar Fair LP
57.85
6.3
3,274.1
19.1
121.0
STAY
Extended Stay America, Inc.
14.69
6.1
3,679.8
25.6
155.0
ENB
Enbridge, Inc.
35.69
6.0
72,230.5
20.8
124.0
NTB
The Bank of N.T. Butterfield & Son Ltd.
30.05
5.5
1,640.9
8.5
46.3
UBS
UBS Group AG
11.26
0.0
41,210.9
9.3
0.0
CORR
CorEnergy Infrastructure Trust, Inc.
46.89
6.4
634.5
17.6
112.4
WPP
WPP Plc
60.47
6.2
15,082.8
16.6
102.4
TX
Ternium SA
18.15
0.0
3,563.0
1.2
0.0
WMB
The Williams Cos., Inc.
23.15
6.2
28,058.3
305.0
1,897.2
CMO
Capstead Mortgage Corp.
7.53
5.2
722.6
-8.7
-45.0
CPAC
Cementos Pacasmayo SAA
9.56
5.2
810.4
26.4
137.4
MC
Moelis & Co.
32.21
6.0
2,339.4
13.4
80.4
TNP
Tsakos Energy Navigation Ltd.
3.85
0.0
344.6
-3.1
0.0
LB
L Brands, Inc.
17.89
10.1
4,944.7
8.6
86.1
PHI
PLDT, Inc.
20.97
4.6
4,530.7
12.3
57.1
RDS.B
Royal Dutch Shell Plc
58.08
6.5
108,229.2
11.7
75.5
MDP
Meredith Corp.
35.33
6.3
1,598.0
-50.1
-317.7
ESBK
Elmira Savings Bank
14.36
6.4
50.0
19.4
124.4
GOOD
Gladstone Commercial Corp.
23.17
6.5
738.3
435.5
2,819.5
ATAX
America First Multifamily Investors LP
7.79
6.4
470.7
13.0
83.2
CMRE
Costamare Inc.
6.70
6.0
791.8
25.6
152.8
TCP
TC Pipelines LP
39.28
6.6
2,875.5
-13.2
-87.4
RDS.A
Royal Dutch Shell Plc
57.54
5.6
121,090.1
11.5
64.1
NLSN
Nielsen Holdings Plc
20.62
6.8
7,334.0
-10.6
-72.2
KTB
Kontoor Brands, Inc.
37.81
0.0
2,150.6
CEQP
Crestwood Equity Partners LP
34.85
6.9
2,518.6
11.9
81.7
PZN
Pzena Investment Management, Inc.
8.44
1.4
591.4
11.4
16.1
AY
Atlantica Yield Plc
24.12
6.1
2,450.6
-273.2
-1,653.5
RPT
RPT Realty
13.62
6.5
1,091.7
92.0
594.6
CYD
China Yuchai International Ltd.
13.15
0.0
537.3
5.5
0.0
SIX
Six Flags Entertainment Corp.
50.59
6.4
4,267.6
15.5
99.5
SNH
Senior Housing Properties Trust
9.19
14.4
2,184.8
-27.3
-392.6
BP
BP Plc
37.36
6.5
126,012.0
14.1
92.1
TTS
Tile Shop Holdings, Inc.
3.07
6.5
156.3
59.5
387.6
CIO
City Office REIT, Inc.
13.28
7.1
526.5
-33.6
-238.0
PACW
PacWest Bancorp
36.87
6.5
4,358.3
9.5
62.1
PPDF
PPDAI Group, Inc.
2.79
0.0
493.1
2.0
0.0
BBBY
Bed Bath & Beyond, Inc.
11.98
5.5
1,516.3
-2.1
-11.4
GAIN
Gladstone Investment Corp.
12.46
6.5
409.0
7.4
48.2
MVC
MVC Capital, Inc.
8.93
6.7
158.3
14.2
95.1
SPTN
SpartanNash Co.
12.60
5.9
457.8
101.9
598.2
BBGI
Beasley Broadcast Group, Inc.
2.90
6.9
80.8
7.7
53.3
OLP
One Liberty Properties, Inc.
27.21
6.6
541.0
29.8
197.4
JHG
Janus Henderson Group Plc
21.92
6.6
4,200.9
10.3
67.6
WBK
Westpac Banking Corp.
19.67
6.7
68,512.5
13.1
87.5
MNRL
Brigham Minerals, Inc.
19.31
0.0
980.5
NRP
Natural Resource Partners LP
27.50
6.5
337.2
3.3
21.8
GMRE
Global Medical REIT, Inc.
11.53
6.9
453.5
31.4
218.0
SAN
Banco Santander SA
4.25
4.5
70,574.9
9.0
40.2
F
Ford Motor Co.
9.07
6.6
36,189.2
16.4
108.8
BANX
StoneCastle Financial Corp.
22.10
6.9
145.6
15.2
104.9
NMM
Navios Maritime Partners LP
19.96
6.0
219.2
-43.9
-263.7
BXMT
Blackstone Mortgage Trust, Inc.
35.84
6.9
4,812.9
14.4
99.8
PAGP
Plains GP Holdings LP
19.40
0.0
15,462.7
VNOM
Viper Energy Partners LP
26.30
7.9
3,551.8
38.6
303.5
CVI
CVR Energy, Inc.
43.79
6.9
4,402.3
11.2
76.6
BPY
Brookfield Property Partners LP
19.23
6.7
16,860.2
13.1
87.9
BPR
Brookfield Property REIT, Inc.
19.26
6.7
13,823.7
17.8
119.5
TKC
TURKCELL Iletisim Hizmetleri AS
5.21
0.0
4,553.0
12.6
0.0
BHR
Braemar Hotels & Resorts, Inc.
9.12
7.0
300.1
-10.2
-71.4
CAMT
Camtek Ltd.
10.08
0.0
388.3
16.1
0.0
GLPI
Gaming & Leisure Properties, Inc.
38.47
6.9
8,258.9
24.5
170.2
CDR
Cedar Realty Trust, Inc.
3.36
6.0
299.2
37.0
220.5
SPKE
Spark Energy, Inc.
10.11
7.2
356.7
-13.4
-95.8
TUP
Tupperware Brands Corp.
15.63
12.2
762.6
5.8
70.0
ENIA
Enel Américas SA
9.50
0.0
14,456.4
8.3
0.0
TCO
Taubman Centers, Inc.
36.41
7.3
2,228.6
49.2
359.6
GBDC
Golub Capital BDC, Inc.
17.91
7.1
2,373.0
15.1
108.2
EVC
Entravision Communications Corp.
2.58
7.8
219.2
-36.3
-281.7
PAA
Plains All American Pipeline LP
18.72
6.7
13,628.7
4.5
30.2
ADES
Advanced Emissions Solutions, Inc.
13.96
7.2
259.3
7.5
53.4
BPL
Buckeye Partners LP
41.41
8.5
6,373.9
-66.8
-566.3
APTS
Preferred Apartment Communities, Inc.
14.34
7.2
650.1
-8.9
-64.5
RWT
Redwood Trust, Inc.
16.58
7.2
1,858.5
12.1
87.9
OPI
Office Properties Income Trust
31.41
14.5
1,511.2
-10.6
-153.2
JCAP
Jernigan Capital, Inc.
18.85
7.4
419.2
8.4
62.2
OXY
Occidental Petroleum Corp.
40.80
7.6
36,494.8
8.1
61.6
TGLS
Tecnoglass, Inc.
7.73
5.4
346.8
18.8
102.4
CODI
Compass Diversified Holdings
20.01
7.2
1,198.6
-30.4
-218.8
CLDT
Chatham Lodging Trust
17.64
7.5
827.7
32.9
245.9
HP
Helmerich & Payne, Inc.
37.65
7.5
4,120.2
-55.1
-415.8
APLE
Apple Hospitality REIT, Inc.
16.10
7.5
3,604.3
18.6
138.3
LOAN
Manhattan Bridge Capital, Inc.
6.27
7.7
60.6
13.3
102.0
OCSL
Oaktree Specialty Lending Corp.
5.18
7.3
730.2
5.0
36.8
BXG
Bluegreen Vacations Corp.
9.40
6.8
699.8
15.9
108.0
BBL
BHP Group Plc
42.03
6.3
44,384.3
12.3
78.0
SCU
Sculptor Capital Management, Inc.
16.25
6.2
1,127.1
27.6
169.6
CSWC
Capital Southwest Corp.
21.91
6.7
387.7
13.4
89.7
PK
Park Hotels & Resorts, Inc.
23.35
8.7
5,604.0
16.6
144.4
CC
The Chemours Co.
14.75
6.8
2,411.4
4.2
28.3
CLNY
Colony Capital, Inc.
5.48
8.0
2,672.6
-2.5
-20.4
IRM
Iron Mountain, Inc.
32.79
7.4
9,414.2
32.2
237.5
CATO
The Cato Corp.
17.24
7.7
427.0
12.5
96.1
OCSI
Oaktree Strategic Income Corp.
8.10
7.7
238.7
19.3
148.1
ING
ING Groep NV
11.08
5.6
43,161.8
8.2
45.7
AHT
Ashford Hospitality Trust, Inc.
2.81
14.9
287.0
-1.5
-23.0
ORCC
Owl Rock Capital Corp.
16.95
0.0
6,529.0
18.8
0.0
CINR
Ciner Resources LP
17.52
11.6
345.8
7.5
87.8
TSLX
TPG Specialty Lending, Inc.
20.72
7.5
1,373.1
9.8
74.0
HESM
Hess Midstream Partners LP
21.10
6.9
1,152.6
16.9
116.7
AFIN
American Finance Trust, Inc.
14.19
6.7
1,507.6
-41.6
-280.5
HT
Hersha Hospitality Trust
13.98
8.0
549.0
-26.0
-208.6
BTI
British American Tobacco plc
34.60
7.4
79,105.1
9.9
73.6
AB
AllianceBernstein Holding LP
28.02
8.7
2,704.6
12.0
104.5
IVZ
Invesco Ltd.
15.79
7.7
14,836.1
10.8
83.1
SNR
New Senior Investment Group, Inc.
6.82
7.6
566.9
-4.3
-33.1
HHR
Headhunter Group Plc
18.75
0.0
937.5
PMD
Psychemedics Corp.
9.42
7.6
52.0
14.6
112.0
AMID
Third Coast Midstream LLC
5.24
0.0
284.1
-7.4
0.0
KRG
Kite Realty Group Trust
16.47
7.7
1,383.2
-59.1
-455.4
SBRA
Sabra Health Care REIT, Inc.
23.17
7.8
4,391.1
203.2
1,578.9
RLJ
RLJ Lodging Trust
16.74
7.9
2,881.5
21.5
169.2
SOHO
Sotherly Hotels, Inc.
6.70
7.5
95.3
-9.9
-74.4
WLKP
Westlake Chemical Partners LP
23.36
7.3
822.0
14.5
106.3
STWD
Starwood Property Trust, Inc.
24.37
7.9
6,859.8
18.1
142.3
MCC
Medley Capital Corp.
2.49
0.0
135.6
-1.5
0.0
BLX
Banco Latinoamericano de Comercio Exterior SA
19.84
7.8
739.9
33.4
258.9
LADR
Ladder Capital Corp.
17.19
7.8
2,058.2
11.9
93.0
CPLG
CorePoint Lodging, Inc.
9.78
6.4
564.4
-2.4
-15.1
MO
Altria Group, Inc.
43.43
7.4
81,131.6
12.9
95.0
BCRH
Blue Capital Reinsurance Holdings Ltd.
6.92
8.7
60.7
-2.1
-18.3
IRCP
IRSA Propiedades Comerciales SA
11.71
0.0
368.9
-1.8
0.0
SUNS
Solar Senior Capital Ltd.
17.44
8.1
279.8
19.0
153.4
AMC
AMC Entertainment Holdings, Inc.
9.17
8.7
952.3
168.3
1,467.9
ABDC
Alcentra Capital Corp.
8.91
8.1
114.7
14.1
114.1
SLRC
Solar Capital Ltd.
20.19
8.1
853.2
11.9
96.9
SHLX
Shell Midstream Partners LP
20.75
7.5
4,840.8
11.5
86.8
AEG
AEGON NV
4.27
6.7
8,721.8
9.2
61.3
SBR
Sabine Royalty Trust
39.06
9.1
569.5
11.3
102.9
PMT
PennyMac Mortgage Investment Trust
22.44
8.4
1,970.4
8.9
74.7
AJX
Great Ajax Corp.
15.67
8.0
308.0
8.9
71.9
EVA
Enviva Partners LP
31.20
8.2
1,043.9
172.6
1,410.4
NS
NuStar Energy LP
28.35
8.5
3,055.1
-4.3
-36.3
LMRK
Landmark Infrastructure Partners LP
17.88
8.2
453.1
4.2
34.7
NCMI
National CineMedia, Inc.
8.29
8.2
1,931.9
18.1
148.4
KEYLL
0.00
0.0
0.0
ENIC
Enel Chile SA
4.76
0.0
6,676.8
15.2
0.0
WSR
Whitestone REIT
13.65
8.4
549.2
30.0
250.4
AHC
A.H. Belo Corp.
3.65
8.8
78.5
6.1
53.3
SVC
Service Properties Trust
25.17
8.5
4,137.0
17.0
144.1
ACRE
Ares Commercial Real Estate Corp.
15.30
8.2
441.7
11.4
94.0
CTL
CenturyLink, Inc.
12.11
13.0
13,209.2
-1.6
-21.3
MFGP
Micro Focus International Plc
13.87
13.7
4,623.1
-13.0
-178.4
TRTX
TPG RE Finance Trust, Inc.
19.72
8.7
1,461.0
11.7
102.0
ARCC
Ares Capital Corp.
18.40
8.6
7,851.7
10.1
86.8
BCSF
Bain Capital Specialty Finance, Inc.
18.69
0.0
965.3
14.4
0.0
GLAD
Gladstone Capital Corp.
9.78
8.6
296.8
65.9
566.0
TPVG
TriplePoint Venture Growth BDC Corp.
16.36
8.8
406.7
7.1
62.9
KREF
KKR Real Estate Finance Trust, Inc.
19.54
8.8
1,121.9
13.5
119.1
XAN
Exantas Capital Corp.
11.32
6.6
360.7
14.0
93.0
ABR
Arbor Realty Trust, Inc.
13.23
8.1
1,248.1
9.2
74.6
FTAI
Fortress Transportation & Infrastructure Investors LLC
15.12
8.7
1,282.9
66.2
577.7
BPMP
BP Midstream Partners LP
14.55
8.1
1,524.3
10.4
84.6
TRGP
Targa Resources Corp.
38.86
9.4
9,045.9
-29.7
-278.5
APAM
Artisan Partners Asset Management, Inc.
26.20
8.8
2,038.6
10.6
93.1
SAR
Saratoga Investment Corp.
24.78
8.6
241.5
7.2
62.4
NHTC
Natural Health Trends Corp.
6.88
0.0
74.2
6.7
0.0
UAN
CVR Partners LP
3.49
5.4
395.4
-190.7
-1,038.3
HCFT
Hunt Companies Finance Trust, Inc.
3.34
7.9
79.1
35.7
283.1
SIG
Signet Jewelers Ltd.
15.75
8.6
823.1
-3.7
-32.4
GPMT
Granite Point Mortgage Trust, Inc.
18.36
9.2
1,007.1
12.7
116.0
GSBD
Goldman Sachs BDC, Inc.
19.81
9.1
799.1
22.1
200.6
BGFV
Big 5 Sporting Goods Corp.
2.39
12.6
51.8
-175.7
-2,205.9
KEN
Kenon Holdings Ltd.
21.85
0.0
1,289.3
-11.6
0.0
EFC
Ellington Financial, Inc.
18.18
9.8
614.0
16.7
164.6
CELP
Cypress Energy Partners LP
9.32
9.0
112.4
11.1
99.7
FAT
FAT Brands, Inc.
4.90
0.0
58.0
-14.8
0.0
ET
Energy Transfer LP
12.49
9.8
32,810.7
10.0
97.3
SNP
China Petroleum & Chemical Corp.
59.11
0.0
15,081.0
10.3
0.0
PBFX
PBF Logistics LP
20.40
9.9
1,267.0
12.6
124.2
XIN
Xinyuan Real Estate Co. Ltd.
4.19
9.3
251.0
2.1
19.5
HCAP
Harvest Capital Credit Corp.
10.05
10.6
61.0
27.6
292.3
MPLX
MPLX LP
27.15
9.5
21,566.6
11.8
111.6
HTGC
Hercules Capital, Inc.
13.40
9.3
1,397.6
10.1
94.7
SKT
Tanger Factory Outlet Centers, Inc.
15.73
8.9
1,471.4
20.3
181.1
SFL
SFL Corp Ltd
14.73
9.5
1,585.1
17.2
163.5
PBT
Permian Basin Royalty Trust
4.10
12.0
191.1
8.3
100.0
ARI
Apollo Commercial Real Estate Finance, Inc.
18.97
9.7
2,912.5
12.0
116.1
WES
Western Midstream Partners LP
23.76
10.1
10,763.5
14.9
150.3
GEL
Genesis Energy LP
21.49
10.1
2,635.1
-63.0
-636.6
PFLT
PennantPark Floating Rate Capital Ltd.
11.53
9.9
447.0
29.7
293.6
M
Macy's, Inc.
15.69
9.6
4,846.9
4.7
45.5
CIM
Chimera Investment Corp.
20.03
10.0
3,748.8
21.9
218.5
HRZN
Horizon Technology Finance Corp.
11.94
10.1
161.7
9.6
96.6
NMFC
New Mountain Finance Corp.
13.48
10.1
1,167.5
11.3
114.5
CHS
Chico's FAS, Inc.
3.50
9.9
412.6
-40.1
-395.2
BGCP
BGC Partners, Inc.
5.60
11.4
1,932.6
10.5
119.7
RC
Ready Capital Corp.
15.82
10.1
702.7
8.1
81.7
MIC
Macquarie Infrastructure Corp.
38.83
10.3
3,349.5
32.7
336.6
SPH
Suburban Propane Partners LP
23.12
10.4
1,427.3
20.7
215.2
SCM
Stellus Capital Investment Corp.
13.31
10.2
251.6
8.1
82.8
NBLX
Noble Midstream Partners LP
24.19
9.5
961.6
6.2
58.7
WHG
Westwood Holdings Group, Inc.
27.92
10.2
249.7
18.0
183.0
MAC
Macerich Co.
27.39
10.9
4,154.5
35.7
389.7
BGS
B&G Foods, Inc.
16.56
11.5
1,082.6
6.1
69.8
GLP
Global Partners LP
19.83
9.9
674.1
12.6
124.9
WHF
WhiteHorse Finance, Inc.
13.85
10.3
284.6
7.2
73.6
TGE
Tallgrass Energy LP
19.36
10.6
5,446.6
13.1
139.0
SUN
Sunoco LP
31.84
10.4
3,157.2
20.7
215.0
EARN
Ellington Residential Mortgage REIT
10.61
12.5
132.3
-654.9
-8,209.9
CGBD
TCG BDC, Inc.
14.11
10.5
843.1
18.0
188.4
PTMN
Portman Ridge Finance Corp.
2.20
13.6
82.2
-3.6
-49.6
NEWT
Newtek Business Services Corp.
21.81
8.4
417.9
11.0
92.4
TGA
TransGlobe Energy Corp.
1.29
5.4
93.6
4.7
25.7
CXW
CoreCivic, Inc.
15.41
11.3
1,835.3
10.2
114.8
KNOP
KNOT Offshore Partners LP
19.46
10.7
636.2
13.0
139.1
MFA
MFA Financial, Inc.
7.53
10.6
3,392.7
10.7
113.4
FDUS
Fidus Investment Corp.
14.36
10.9
351.3
8.5
92.3
DKL
Delek Logistics Partners LP
31.05
10.3
758.1
12.6
129.4
HEP
Holly Energy Partners LP
21.95
12.1
2,314.4
12.2
148.2
TCPC
Blackrock TCP Capital Corp.
13.34
10.8
783.9
28.6
308.2
BSM
Black Stone Minerals LP
13.17
11.0
2,712.5
8.8
96.3
KRP
Kimbell Royalty Partners LP
14.28
11.6
669.9
-14.3
-165.7
GNL
Global Net Lease, Inc.
19.16
9.3
1,618.8
157.4
1,458.5
VEON
VEON Ltd.
2.31
10.5
4,040.5
33.5
351.4
FLMN
Falcon Minerals Corp.
6.36
7.4
546.1
10.3
75.8
CNXM
CNX Midstream Partners LP
13.03
10.9
830.5
6.0
65.4
MBT
Mobile TeleSystems PJSC
8.33
8.7
8,323.3
56.5
490.9
PSEC
Prospect Capital Corp.
6.52
11.0
2,394.7
16.5
182.5
MNDO
MIND C.T.I. Ltd.
2.34
0.0
46.4
8.5
0.0
ENBL
Enable Midstream Partners LP
10.71
11.9
4,660.0
8.9
106.0
NGL
NGL Energy Partners LP
11.88
13.1
1,521.1
4.6
60.2
HMLP
Höegh Lng Partners LP
16.14
10.9
536.1
12.5
136.1
HIHO
Highway Holdings Ltd.
1.70
0.0
6.5
-7.9
0.0
DMLP
Dorchester Minerals LP
17.90
10.8
620.8
11.3
121.5
SEMG
SemGroup Corp.
15.97
11.8
1,256.6
-18.5
-219.1
NLY
Annaly Capital Management, Inc.
8.65
13.3
12,596.6
-2.6
-34.7
PRT
PermRock Royalty Trust
7.14
14.5
86.9
6.9
100.0
BKCC
BlackRock Capital Investment Corp.
4.84
14.9
333.2
-64.3
-956.2
AINV
Apollo Investment Corp.
15.57
11.6
1,055.5
13.2
152.2
CPLP
Capital Product Partners LP
11.84
14.8
215.2
-1.4
-20.5
OFS
OFS Capital Corp.
11.70
11.6
156.4
19.1
222.4
GLOP
GasLog Partners LP
19.64
11.0
934.0
14.9
163.3
PNNT
PennantPark Investment Corp.
6.11
11.8
409.6
21.0
247.5
OMP
Oasis Midstream Partners LP
16.15
10.9
545.8
5.9
64.0
IVR
Invesco Mortgage Capital, Inc.
15.49
11.2
2,212.0
-15.3
-172.2
DCP
DCP Midstream LP
23.63
13.2
3,386.6
23.0
304.2
AGNC
AGNC Investment Corp.
16.12
13.2
8,830.8
-10.5
-137.7
SSI
Stage Stores, Inc.
2.17
0.0
62.7
-0.6
0.0
GEO
The GEO Group, Inc.
15.61
12.2
1,892.7
12.0
145.9
TWO
Two Harbors Investment Corp.
13.38
13.5
3,651.5
-4.8
-64.3
CAPL
CrossAmerica Partners LP
17.81
11.8
613.4
32.1
378.4
USAC
USA Compression Partners LP
17.44
12.0
1,796.3
-74.4
-896.3
CPTA
Capitala Finance Corp.
8.80
11.4
142.0
-2.8
-31.8
MITT
AG Mortgage Investment Trust, Inc.
14.90
13.4
487.8
26.2
351.3
GECC
Great Elm Capital Corp.
8.32
12.0
83.7
-21.7
-259.3
DX
Dynex Capital, Inc.
15.25
14.2
376.0
-1.5
-21.1
ANH
Anworth Mortgage Asset Corp.
3.35
15.2
330.8
-3.5
-52.7
ARR
ARMOUR Residential REIT, Inc.
16.78
13.6
988.2
-1.8
-24.3
IEP
Icahn Enterprises LP
67.74
11.1
13,653.1
16.1
178.6
CLNC
Colony Credit Real Estate, Inc.
13.96
12.5
1,794.4
-6.5
-81.3
QUAD
Quad/Graphics, Inc.
9.94
12.1
524.8
-14.2
-171.4
CHMI
Cherry Hill Mortgage Investment Corp.
12.84
15.3
220.4
-3.3
-50.2
ETRN
Equitrans Midstream Corp.
14.51
0.0
3,700.5
22.3
0.0
CRT
Cross Timbers Royalty Trust
8.13
14.7
48.8
6.8
100.0
VEDL
Vedanta Ltd.
8.74
0.0
8,122.1
8.3
0.0
TCRD
THL Credit, Inc.
6.85
14.0
212.8
-7.9
-111.1
SHI
Sinopec Shanghai Petrochemical Co. Ltd.
28.80
0.0
1,006.6
7.4
0.0
AMPY
Amplify Energy Corp.
6.40
0.0
255.9
-8.3
0.0
WMC
Western Asset Mortgage Capital Corp.
9.86
12.6
524.8
10.8
135.7
MTR
Mesa Royalty Trust
8.15
14.8
15.2
6.8
100.0
VGR
Vector Group Ltd.
11.27
13.2
1,665.6
21.1
278.2
FSK
FS KKR Capital Corp.
5.80
13.1
3,007.6
2.3
30.4
NYMT
New York Mortgage Trust, Inc.
6.14
13.0
1,589.5
11.4
148.8
OXSQ
Oxford Square Capital Corp.
5.91
13.6
281.6
-12.6
-170.2
NRZ
New Residential Investment Corp.
15.44
13.0
6,415.6
18.4
238.4
VET
Vermilion Energy, Inc.
15.16
13.8
2,322.7
8.8
120.4
GARS
Garrison Capital, Inc.
6.58
14.7
105.6
-40.0
-590.0
MRCC
Monroe Capital Corp.
10.16
13.8
207.7
17.9
246.6
PVL
Permianville Royalty Trust
2.33
14.8
76.9
6.5
95.4
GPP
Green Plains Partners LP
13.32
14.3
308.5
7.2
103.3
BKEP
BlueKnight Energy Partners LP
1.16
24.1
47.3
-0.7
-17.2
VOC
VOC Energy Trust
5.10
14.2
86.7
7.0
100.0
EQM
EQM Midstream Partners LP
32.53
13.8
6,520.9
12.9
177.2
USDP
USD Partners LP
9.99
14.4
264.8
27.9
400.4
ENLC
EnLink Midstream LLC
7.22
15.1
3,945.0
-9.3
-140.3
BBVA
Banco Bilbao Vizcaya Argentaria SA
5.25
4.5
34,922.4
6.8
30.7
NRT
North European Oil Royalty Trust
5.85
13.8
53.8
7.3
100.8
ARLP
Alliance Resource Partners LP
13.69
15.4
1,757.7
3.9
60.3
DLNG
Dynagas LNG Partners LP
2.04
39.8
72.4
-8.8
-352.2
SRLP
Sprague Resources LP
17.46
15.3
396.9
10.2
155.6
ICMB
Investcorp Credit Management BDC, Inc.
6.53
15.3
89.0
-6.1
-93.7
SMTA
Spirit MTA REIT
8.63
15.3
372.5
-1.3
-19.9
PEI
Pennsylvania Real Estate Investment Trust
5.27
15.9
408.7
-2.9
-46.7
CCR
CONSOL Coal Resources LP
12.55
16.3
346.8
6.4
104.8
MARPS
Marine Petroleum Trust
2.10
15.5
4.2
6.6
102.8
BMA
Banco Macro SA
26.68
0.0
1,675.9
2.8
0.0
ORC
Orchid Island Capital, Inc.
5.89
16.5
371.4
-20.7
-341.4
MVO
MV Oil Trust
6.59
20.7
75.8
4.8
100.0
MDRR
Medalist Diversified REIT, Inc.
4.12
8.7
18.5
-3.1
-27.5
GMLP
Golar LNG Partners LP
10.01
17.9
709.6
75.3
1,345.9
AI
Arlington Asset Investment Corp.
5.46
24.7
200.2
-4.5
-112.1
NNA
Navios Maritime Acquisition Corp.
10.19
11.8
1,456.0
-2.0
-23.8
SALM
Salem Media Group, Inc.
1.50
17.3
31.6
-7.7
-132.8
AM
Antero Midstream Corp.
7.45
9.9
3,776.4
20.7
204.8
TLRD
Tailored Brands, Inc.
4.15
17.3
210.2
3.4
58.9
NEWM
New Media Investment Group, Inc.
8.50
17.8
514.1
570.5
10,134.2
TRMT
Tremont Mortgage Trust
4.99
6.6
40.9
12.8
84.9
ROYT
Pacific Coast Oil Trust
1.35
23.6
52.1
4.1
97.4
MTLPR
0.00
0.0
0.0
CSS
CSS Industries, Inc.
4.85
0.0
42.9
-0.9
0.0
MMLP
Martin Midstream Partners LP
4.05
43.2
157.4
-1.0
-44.5
PER
SandRidge Permian Trust
1.61
25.5
84.5
3.9
99.7
SMLP
Summit Midstream Partners LP
4.58
43.9
378.8
10.9
476.9
CHKR
Chesapeake Granite Wash Trust
0.56
37.4
26.2
2.7
100.0
ECT
ECA Marcellus Trust I
1.12
28.5
19.7
3.8
109.1
WPG
Washington Prime Group, Inc.
4.00
25.0
746.3
22.3
558.7
SDT
Sandridge Mississippian Trust I
0.48
35.9
13.4
2.8
98.9
SDR
Sandridge Mississippian Trust II
0.47
36.4
23.4
2.7
99.7
BPT
BP Prudhoe Bay Royalty Trust
9.00
46.0
192.6
2.2
100.0
CNSL
Consolidated Communications Holdings, Inc.
3.50
33.2
252.3
-5.6
-185.6
TGS
Transportadora de Gas del Sur SA
8.27
0.0
610.2
3.3
0.0
Ticker Name Price Dividend Yield Market Cap ($M) P/E Ratio Payout Ratio
Investors do need to be careful when choosing to purchase stocks with higher yields, as this is sometimes a warning sign that the company is facing difficulties that could result in a reduction of the dividend payment down the road. If the reason for investing in a particular stock is due to income needs, a dividend reduction could be devastating to the investor.
High-yielding stocks might be seeing earnings growth slow down or decline. At the same time, high-yield stocks that are struggling to grow earnings are at risk of cutting their dividend if the business fundamentals deteriorate. Therefore, investors need to look past the high dividend yield and examine the company’s business model to determine whether the dividend is sustainable before making an investment decision.
This is particularly important if a recession hits the U.S. economy. Increasing a dividend during a period of growth is one thing, but being able to maintain payments to shareholders during a severe economic downturn shows that the company’s business is able to withstand a recessions.
Ford Motor (F) stock has a high dividend yield of 6.6%, which is very attractive for income investors. But while the dividend appears sustainable today, it could be in trouble should the U.S. economy enter a deep downturn.
Business Overview
Ford was founded by Henry Ford and 12 others in 1903. Ford was very interested in understanding how machines worked from a very early age. At the age of 12 he began working in a small machine in Michigan. By 15, he built his first steam engine. By the late 1890s, Ford completed the first Ford engine, a one-cylinder gasoline model, in the kitchen of his Detroit home. The Quadricycle, which used a later version of this original engine strapped to four bicycle wheels, would become Ford’s first car. The first Ford car sale occurred on July 15th, 1903.
The company’s famous Model T went into production in 1908. The car was very affordable and durable. Because there were fewer than 18,000 miles of paved road in the U.S. at the time, Ford used a light and strong steel alloys for important components so that the car could withstand the bump and grind of primitive roads. Mass production allowed Ford to market the car to the masses, helping the company to sell more than 15 million units through 1927, when production of the Model T ended.
Today, Ford is one of the world’s largest automakers and is the second largest domestic automaker. The company operates a manufacturing division, which produces popular cars, like the Mustang, trucks, like the F-150 and SUVs, like the Explorer, and a financing division. Ford trades with a market capitalization of $35 billion and generates $148 billion in annual revenues.
Ford reported second-quarter earnings results on July 24th, 2019.
Source: Ford’s Second Quarter Results Presentation, slide 3.
Revenue of $38.9 billion was flat year-over-year, though this was higher than the average analysts’ estimate. The company’s adjusted earnings-per-share was $0.28 for the quarter. This was $0.03 below expectations, but a 3.7% increase from the previous year. Gains in pricing and volume and mix were more than offset by foreign exchange, which reduced revenue results by more than 3%.
Automotive earnings before interest and taxes, or EBIT, increased 19% to $1.4 billion, the second consecutive quarter of growth. This marks the first time in three years that EBIT has shown growth in back-to-back quarters. EBIT margins of 4.3% were flat from the prior year.
Improvements in EBIT were primarily due to strength in North America. EBIT for this region was $1.7 billion, down slightly from last year’s $1.8 billion results. Wholesale sales were lower by 7%, but vehicle mix and pricing were strong. This region had lower volumes for the new Ford Explorer and Police Interceptor models while the Lincoln brands performed very well during the quarter.
The F-Series pickup truck was the top selling truck in its market. Ford benefited from lower incentive spending, helping to increase revenues for the product group. Total pickup sales were the best they had been since 2004. New SUVs, notably the Expedition, EcoSport and Edge, were up 14%.
Europe posted negative EBIT in last year’s second quarter, but produced $53 million this quarter. This was the first improvement in profitability in two years. The company’s Transit model had a quarterly record profit, increasing 2.7% from the second quarter of 2018. Ford plans to launch a Transit Hybrid model later this year and an all-electric Transit is set to launch in 2021.
China EBIT loss improved from a loss of $328 million last year to a loss of $155 million. Consolidated revenue improved 48%, due to higher demand for the Lincoln brand. Retails sales were up 13% from the first quarter of 2019. Dealer inventory was at extremely low levels. The company’s new Territory SUV has been the best-selling Ford SUV in China this year.
Growth Prospects
Despite multiple potential headwinds, including a slowing global economy and margin pressures, Ford sees the potential for growth across multiple key metrics this year. And, the company expects 2019 to be another highly profitable year.
Ford’s guidance for 2019 is as follows:
Source: Ford’s Second Quarter Results Presentation, slide 20.
Adjusted EBIT is expected to be flat to up 7% while cash flows should also improve. The midpoint for adjusted earnings-per-share is $0.02 below last year’s result.
Ford is in the process of restructuring its business in certain regions, most notably Europe.
Source: Ford’s Second Quarter Results Presentation, slide 7.
In order to manage costs, Ford in the process of closing or selling six of the company’s 24 facilities in Europe. The company is also discontinuing unpopular brands C-MAX, Grand C-MAX and KA+. This will reduce Ford’s employee headcount by 12,000 people across the region. The goal of this restructuring is that Ford will be able to return to growth in Europe after several years of difficulties.
While quarterly results were decent and Ford saw some improvements in regions where they had previously struggled, not all was good for the company.
The company’s market share worldwide was 6.2%, a drop of 50 bps from the same period a year ago. This year-over-year decline was due to a 9% decline in wholesale units. Almost every region that Ford operates saw a drop-in market share, with North America market share down 20 bps to 12.8% on 7% lower wholesale units.
China market share dropped to 2.3% due to a 32% decrease in wholesale volumes. The company’s European market share declined 20 bps to 6.7% despite a 3% increase in wholesale volumes. These gains in Europe volumes were offset by a 1% decline in revenue for the region. The only region to increase market share was Middle East/Africa, which was up 50 bps to 3.1% although revenue was lower by 26% during the quarter.
Surrendering market share is something that investors should keep an eye on as it is quite possible that this will only worsen during a recession. When that happens, Ford’s dividend could be at risk.
Dividend Analysis
Despite a nearly 7% dividend yield, Ford’s dividend history leaves a lot to be desired. Leading up to the last financial crisis, Ford cut its dividend by 38% from $0.40 in 2005, to $0.25 in 2006. The company eliminated its dividend the very next year as the automaker suffered severe declines for both revenue and earnings-per-share.
Listed below are Ford’s adjusted earnings-per-share results before, during and after the last recession.
2004 adjusted earnings-per-share: $2.13
2005 adjusted earnings-per-share: $1.25
2006 adjusted earnings-per-share: $1.50
2007 adjusted earnings-per-share: $0.19
2008 adjusted earnings-per-share: $3.13
2009 adjusted earnings-per-share: $0.00
2010 adjusted earnings-per-share: $1.91
2011 adjusted earnings-per-share: $1.95
—
2018 adjusted earnings-per-share: $1.30
As you can see, adjusted earnings-per-share bottomed out at $0.00 in 2009. Ford has rather consistently alternated between years of earning growth and decline for much of the past 15 years or so. The company has still not regained its high prior to the last recession. With results like this, it is not surprising that the company cut its dividend leading up to the last recession.
Ford paid a quarterly dividend of $0.15 per share in the second quarter of 2019. Using adjusted earnings-per-share of $0.28, this equates to a dividend payout ratio of 54%.
Looking out over a longer-term horizon, Ford has produced adjusted earnings-per-share of $1.31 over the last four quarters while paying out $0.60 in dividends during this same period of time. This results in a payout ratio of 46% over the last year.
These payout ratios are above Ford’s average payout ratio of 34% since 2012, the year the company started distributing dividends again.
Let’s examine Ford’s free cash flow, as this is often the preferred method to measuring dividend safety. Ford generated $4.5 billion of free cash flow in the second quarter and distributed $599 million of dividends for a payout ratio of just 13%.
Ford has generated $8.9 billion of free cash flow over the last four quarters. The company paid $2.4 billion to shareholders in the form of dividends, giving the company a free cash flow payout ratio of 27% in that period.
Ford has been prone to wild swings in free cash flow. For example, in the first quarter of the2019, free cash flow was $1.9 billion, less than half of the total for the most recent quarter. Free cash flow swung to negative in the fourth quarter of 2018 following an amount of nearly $3.2 billion in the previous quarter. The company is not a consistent producer of free cash flow.
These cash flow payout ratios are very low, but the variation in results helps explain why the company hasn’t increased its dividend since 2015. Given the changes in cash flow from quarter to quarter, the company is likely making the prudent move keeping the dividend at the current level.
Also factoring into a dividend’s safety is the company’s balance sheet. At the conclusion of the second quarter, Ford had $38 billion in cash and securities and $118 billion in total current assets against $98 billion in current liabilities and $226 billion in total liabilities.
While interest on automotive debt declined to $230 million from $287 in the most recent quarter and to $461 million from $562 million for the first half of the year, Ford’s total debt is immense and could make a dividend cut likely if business suffered through a prolonged slump, such as a recession.
Final Thoughts
Ford’s dividend yield of 6.6% is extremely attractive at first glance. Even without any dividend growth, this yield could offer investors a significant amount of income.
A closer look of the company reveals that Ford’s dividend could be at risk in the next recession. The company needed to cut its dividend twice before the last recession, including eliminating it all together in 2007. The company hasn’t been able to reach its pre-recession high for adjusted earnings-per-share either.
While earnings-per-share and free cash flow payout ratios are in a good position right now, Ford’s earnings and cash flows are very inconsistent. We fear that a prolonged downturn in the world’s economies could result in Ford lowering or eliminating its dividend once again.
For this reason, we feel that the stock should only be bought by investors who understand that they are taking a risk owning shares of Ford for its dividend.