Lockheed, Sysco Offer High Yields, Stable Earnings


Some investors seek out high-octane growth stocks that can be highly volatile but may yield outsize gains.

On the other end of the spectrum are those who prefer a less-thrilling ride: slow but stable earnings and stock performance, and regular dividend payouts.

The screens on this page are geared for the latter camp. They filter for stocks offering solid and growing dividends, very stable annual earnings and other characteristics that help them maintain a steady dividend flow.

Today we'll focus on four stocks in very different businesses, but all with a dividend yield of 3.1% or 3.2%. That's well above the S&P 500, which currently yields 1.89%.

Sysco ( SYY ), a distributor of food and related service items, is expected to extend a streak of slowing profits for a sixth quarter when it reports Aug. 11. But it leads the quartet with an annualized yield of 3.2%. Its three-year Earnings Stability Factor is 3 on a scale from 0 (most stable) to 99 (least stable).

Cereal makerGeneral Mills ( GIS ) (3.1% yield), which has an Earnings Stability Factor of 2, has grown its earnings each year since 2007. Analyst forecasts call for 6% growth for the fiscal year ending in May 2015, and 7% in fiscal 2016. The stock may be shaping a new flat base. It rose 7% from a late-March breakout to its early-June high.

Lockheed Martin ( LMT ) (3.1% yield) climbed past a 168.97 flat-base buy point last week and is still hovering low in the 5% buy range. The defense contractor notched profit gains the past six quarters, though sales declined during each of those periods. Its Earnings Stability Factor is 3.

Spectra Energy ( SE ) (3.1% yield) has risen about 10% since clearing a 38.83 flat-base buy point in mid-April. It belongs to the Oil&Gas Transport/Pipeline group, which ranked No. 7 in Tuesday's issue. Spectra's Stability Rating of 8 is less stable than the others. But its 97 Composite Rating outperforms.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Personal Finance , Investing Ideas

Referenced Stocks: SYY , GIS , LMT , SE

Investor's Business Daily

Investor's Business Daily

More from Investor's Business Daily:

Related Videos




Most Active by Volume

  • $115.31 ▲ 5.65%
  • $15.20 ▼ 2.75%
  • $41.19 ▼ 3.45%
  • $46.46 ▼ 3.19%
  • $6.56 ▼ 11.95%
  • $23.84 ▼ 2.21%
  • $7.20 ▼ 2.96%
  • $32.68 ▼ 0.40%
As of 1/28/2015, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by BankRate.com