Stocks

5 Stocks With High Yields with Earnings that Cover the Dividends

These 5 high stocks are attractive to value investors

Photo by Tyler Prahm on Unsplash

These five stocks have consistently growing dividends, where the earnings more than cover the dividend payments. That makes the income to the investor fairly secure.

Moreover, on top of that, most of these stocks have large buyback programs.

Ben Graham, considered the father of value investing, originally suggested that a good defensive stock should be one where a normal and consistent amount of income was paid out as dividends. That typically was about 60% to 70% of their income during his day.

But today, with higher capital requirements, companies need to have a lower ratio, at least 50% to 60% of earnings. This is what these stocks have.

Moreover, most of these stocks have low P/E multiples.

Here are the names of each of these stocks: Walgreens Boots Alliance (WBA), Franklin Resources (BEN), Old Republic Int’l (ORI), Abbvie (ABBV), and Chevron (CVX).

Photo byNathaniel YeoonUnsplash

Walgreens Boots Alliance — WBA