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As of Friday, the following long-term dividend payers offer a forward dividend yield that tops the S&P 500 index's yield of 1.87% significantly. Thus, dividend investors may want to consider buying shares of these companies.
Sell-side analysts also assigned a recommendation rating of overweight to buy to these three large-cap stocks, suggesting they may outperform either their industries or the overall market within 12 months.
The first company is Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM). The shares closed at $43.87 on Friday for a market capitalization of $227.51 billion.
The stock has a forward dividend yield of 3.64% versus the industry median of 2.21%.
The GuruFocus chart shows Taiwan Semiconductor's current trailing annual dividend yield is high compared to its historical value, indicating the stock is profitable.
On Oct. 17, the Taiwan-based semiconductor company will pay a quarterly dividend of 39.9 cents per common share to its shareholders.
The stock has increased 19% so far this year. It is trading above the 100- and 50-day simple moving average lines.
The 52-week range is $34.21 to $45.64.
The 14-day relative strength index of 54 suggests the stock is neither overbought nor oversold.
The stock has a price-book ratio of 4.41 versus the industry median of 1.65 and a price-sales ratio of 6.78 versus the industry median of 1.55.
GuruFocus assigned a very high rating of 8.4 out of 10 for the financial strength of the company.
Wall Street set an overweight recommendation rating for shares of Taiwan Semiconductor Manufacturing Co. and established an average price target of $49.96 per share.
The second company is Merck & Co. Inc. (NYSE:MRK). The shares closed at $85.16 on Friday for a market capitalization of approximately $218.04 billion.
The forward dividend yield is 2.58% versus the industry median of 1.54%.
The GuruFocus chart illustrates that Merck's current trailing annual dividend yield is moderate compared to its historical value, indicating that a buy is still convenient according to Friday's closing price.
On Oct. 7, the Kenilworth, New Jersey-drug major will pay a quarterly dividend of 55 cents per common share.
The stock has increased 11% so far this year to close above the 100- and 50-day simple moving average lines on Friday.
The 52-week range is $66.10 to $87.35.
The 14-day relative strength index of 54 suggests the stock is neither oversold nor overbought.
The stock has a price-book ratio of 7.99 versus the industry median of 2.23 and a price-sales ratio of 5.04 versus the industry median of 2.66.