QQQ   439.00 (+0.86%)
AAPL   180.75 (-0.37%)
MSFT   413.64 (+1.45%)
META   490.13 (+1.26%)
GOOGL   138.46 (+1.53%)
AMZN   176.76 (+2.08%)
TSLA   201.88 (-0.08%)
NVDA   791.12 (+1.87%)
NIO   5.74 (+5.71%)
AMD   192.53 (+9.06%)
BABA   74.02 (-0.76%)
T   16.93 (-0.18%)
F   12.43 (+1.06%)
MU   90.61 (+1.00%)
CGC   3.29 (-2.08%)
GE   156.83 (+0.78%)
DIS   111.51 (+0.64%)
AMC   4.34 (-13.21%)
PFE   26.55 (-1.81%)
PYPL   60.34 (+0.15%)
XOM   104.52 (+0.19%)
QQQ   439.00 (+0.86%)
AAPL   180.75 (-0.37%)
MSFT   413.64 (+1.45%)
META   490.13 (+1.26%)
GOOGL   138.46 (+1.53%)
AMZN   176.76 (+2.08%)
TSLA   201.88 (-0.08%)
NVDA   791.12 (+1.87%)
NIO   5.74 (+5.71%)
AMD   192.53 (+9.06%)
BABA   74.02 (-0.76%)
T   16.93 (-0.18%)
F   12.43 (+1.06%)
MU   90.61 (+1.00%)
CGC   3.29 (-2.08%)
GE   156.83 (+0.78%)
DIS   111.51 (+0.64%)
AMC   4.34 (-13.21%)
PFE   26.55 (-1.81%)
PYPL   60.34 (+0.15%)
XOM   104.52 (+0.19%)
QQQ   439.00 (+0.86%)
AAPL   180.75 (-0.37%)
MSFT   413.64 (+1.45%)
META   490.13 (+1.26%)
GOOGL   138.46 (+1.53%)
AMZN   176.76 (+2.08%)
TSLA   201.88 (-0.08%)
NVDA   791.12 (+1.87%)
NIO   5.74 (+5.71%)
AMD   192.53 (+9.06%)
BABA   74.02 (-0.76%)
T   16.93 (-0.18%)
F   12.43 (+1.06%)
MU   90.61 (+1.00%)
CGC   3.29 (-2.08%)
GE   156.83 (+0.78%)
DIS   111.51 (+0.64%)
AMC   4.34 (-13.21%)
PFE   26.55 (-1.81%)
PYPL   60.34 (+0.15%)
XOM   104.52 (+0.19%)
QQQ   439.00 (+0.86%)
AAPL   180.75 (-0.37%)
MSFT   413.64 (+1.45%)
META   490.13 (+1.26%)
GOOGL   138.46 (+1.53%)
AMZN   176.76 (+2.08%)
TSLA   201.88 (-0.08%)
NVDA   791.12 (+1.87%)
NIO   5.74 (+5.71%)
AMD   192.53 (+9.06%)
BABA   74.02 (-0.76%)
T   16.93 (-0.18%)
F   12.43 (+1.06%)
MU   90.61 (+1.00%)
CGC   3.29 (-2.08%)
GE   156.83 (+0.78%)
DIS   111.51 (+0.64%)
AMC   4.34 (-13.21%)
PFE   26.55 (-1.81%)
PYPL   60.34 (+0.15%)
XOM   104.52 (+0.19%)

The Top-Rated Consumer Defensive Stocks With Yield Above 3.5% 

The Top-Rated Consumer Defensive Stocks With Yield Above 3.5% 

The Wonderful World Of Stock Screens

We like using stock screens to look for investing ideas, not so much to find new investments but to remind us (after all these years) of good investments and, more specifically, the right investments for the right times. Today’s screen was focused on high-yielding consumer defensive names and what we’ve turned up is not all that surprising. Among these names are two of the bluest of blue-chip tech stocks and a host of energy stocks that are not only lightly valued but on the brink of increasing their capital returns and riding a wave of analyst upgrades 

Verizon Is The Highest Yield, And A Good Buy 

Verizon (NYSE: VZ) tops our list of high-yield consumer defensive stocks with a payout worth 5.05% with shares trading at $51. The payout is growing as well, coming with an 18-year history of distribution increases and a low 46% payout ratio as well. In our view, the share price may be stuck in a range and it may even move lower but the dividend is safe. As for the value, Verizon is trading at only 9.5X its earnings compared to about 15X for the average S&P 500 company and it pays more than twice the yield. The outlook for growth isn’t robust but it is present and underpinning the stock’s price. 

There are 15 analysts with current ratings on Verizon and they have the stock pegged at a Hold. In our view, this amounts to a Buy for those without a stake in the company and there is some upside potential as well. The consensus price target has been edging lower over the past year but is still 14% above the price action. The latest shoutout comes from AllianceBernstein which ranked it #6 on its list of top sticky stocks. Sticky stocks are stocks whose owners tend to buy and hold and have more muted reactions to earnings misses. 

The Top-Rated Consumer Stocks With Yield Above 3.5% 

The Energy Sector, Again… 

If you need another reason to be interested in the energy sector other than the rise in oil prices, the unrelenting wave of upgrades, or the low valuation you can add high yield to the list. The energy sector, including Exxon Mobil (NYSE: XOM), Shell (NYSE: SHEL), and Chevron (NYSE: CVX) occupy spots 2-4 in our screen results and they all yield about 4.0% at recent price levels. Exxon and Chevron are, notably, also on the list of top Stick Stocks and Exxon just garnered another upgrade as well. The upgrade comes from Piper Sandler and is a double-upgrade from Neutral to Overweight with a price target of $109. This target is 15% above the current consensus, a consensus that is trending higher, and implies about 24% of upside on top of the 4% yield and expected increase in distribution and share repurchases. If you’re not interested in individual Energy stocks there is always the Energy Sector SPDR (NYSEARCA: XLE) as well and it yields about 3.75%. 

The Top-Rated Consumer Stocks With Yield Above 3.5% 

Intel, The Highest Yielding Tech Stock We Want To Own 

There may be higher-yielding stocks in the tech sector than Intel (NASDAQ: INTC) but they aren’t any names we’re interested in. Intel, on the other hand, is among the most established tech firms on the market and fundamental to the tech industry. The stock also yields about 3.6% and has a positive outlook for dividend growth. While the sentiment for chip stocks has been slipping in recent weeks, the outlook for the industry is still bullish, and expecting at least 24% of upside for the stock. Regardless of the Q2 results, however, the stock is trading at an attractive 11X its earnings which, along with the dividend, makes it an attractive stock in a no-growth environment. 

The Top-Rated Consumer Stocks With Yield Above 3.5% 

→ Critical asset just had biggest fall on record (From Stansberry Research) (Ad)

Should you invest $1,000 in Verizon Communications right now?

Before you consider Verizon Communications, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Verizon Communications wasn't on the list.

While Verizon Communications currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

These 7 Stocks Will Be Magnificent in 2024 Cover

With average gains of 150% since the start of 2023, now is the time to give these stocks a look and pump up your 2024 portfolio.

Get This Free Report

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Verizon Communications (VZ)
4.6287 of 5 stars
$40.00-0.2%6.65%14.49Moderate Buy$44.00
Energy Select Sector SPDR Fund (XLE)N/A$86.14+0.5%3.74%6.92N/AN/A
Exxon Mobil (XOM)
4.655 of 5 stars
$104.52+0.2%3.64%11.76Moderate Buy$127.53
Chevron (CVX)
4.8569 of 5 stars
$151.97-0.2%4.29%13.38Moderate Buy$181.53
Shell (SHEL)
2.005 of 5 stars
$62.79+0.3%4.38%11.09Hold$67.00
Intel (INTC)
4.5584 of 5 stars
$43.05+2.5%1.16%110.39Hold$41.48
Compare These Stocks  Add These Stocks to My Watchlist 

Thomas Hughes

About Thomas Hughes

  • tmhughes.writeon@gmail.com

Contributing Author

Technical and Fundamental Analysis

Experience

Thomas Hughes has been a contributing writer for MarketBeat since 2019.

Areas of Expertise

Technical analysis, the S&P 500; retail, consumer, consumer staples, dividends, high-yield, small caps, technology, economic data, oil, cryptocurrencies

Education

Associate of Arts in Culinary Technology

Past Experience

Market watcher, trader and investor for numerous websites. Founded Passive Market Intelligence LLC to provide market research insights. 


Featured Articles and Offers

7 Dividend Stocks with Double-Digit Growth Rates

7 Dividend Stocks with Double-Digit Growth Rates

Discover top dividend stocks defying myths with both secure dividends & double-digit growth. Explore our list of 7 blue-chips setting 2024 standards.

Search Headlines: