News That Matters

These rock solid dividend stocks could help investors ride out the market turmoil

A shopper is seen in a Target store in the Brooklyn borough of New York.

Brendan McDermid | Reuters

(This story is for CNBC Pro subscribers only.)

Investors might have thought 1,000 points swings in the Dow were a thing of the past, but this week proved market volatility still reigns. 

Investors might look to stable stocks with high dividends as a source of yield during the market turmoil. 

CNBC used S&P Global Market Intelligence to screen for rock solid dividend stocks. The companies also have low relative debt and a good Piotroski score. 

A Piotroski score is a measure of financial stability, on a scale of 0 to 9, that is used to find value stocks. It includes points for measures like net profit, improvements in the ratio of long term debt, and operating margin. Net-debt-to-EBITDA is a measure a company’s leverage divided by its cash flow.

All the listed stocks are members of the S&P 500 and have a dividend yield above 2%, which is higher than the yield of the S&P. Companies with a Piotroski score of 7 or better and a debt-to-EBITDA ratio of less than 3 made the cut. 

Take a look at CNBC’s list here. 

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *