Morgan Stanley: the 20 Best Dividend Stocks

2012-06-26T17:22:00Z

Dividend yields look attractive compared to bond yields across most developed economies.

Adam Parker, Morgan Stanley's top U.S. equity strategist, is a fan.

In a new report, Morgan Stanley's global equity strategy team identifies 20 U.S. companies with the most attractive and sustainable dividend yields.

All stocks are rated "overweight" by Morgan Stanley's analysts.

We ranked the stocks by their dividend yield, and included data on their payout ratio (amount of earnings paid out in dividends) and net debt / capitalization ratio (the higher this ratio the more levered the company).

Financials are the largest payers of dividends globally.

Note: All companies on this list have a market cap of over $2 billion and a dividend yield over 2.25 percent but under 6 percent.

Archer Daniels Midland Co; 2.3%

Ticker:
ADM

Sector:
Consumer staples

Payout ratio:
22.7%

Net debt/capitalization:
14.9%

Source: Morgan Stanley

Interpublic Group Of Cos.; 2.3%

Ticker:
IPG

Sector:
Consumer discretionary

Payout ratio:
28.6%

Net debt/capitalization:
-6.8%

Source: Morgan Stanley

Las Vegas Sands Corp; 2.3%

Ticker:
LVS

Sector:
Consumer discretionary

Payout ratio:
37.8%

Net debt/capitalization:
9.3%

Source: Morgan Stanley

Cardinal Health; 2.4%

Ticker:
CAH

Sector:
Health care

Payout ratio:
28.4%

Net debt/capitalization:
-4.3%

Source: Morgan Stanley

Western Union Co.; 2.4%

Ticker:
WU

Sector:
Information technology

Payout ratio:
21.3%

Net debt/capitalization:
11.6%

Source: Morgan Stanley

Colgate-Palmolive; 2.5%

Ticker:
CL

Sector:
Consumer staples

Payout ratio:
45.8%

Net debt/capitalization:
9.2%

Source: Morgan Stanley

Marathon Petroleum Corp.; 2.5%

Ticker:
MPC

Sector:
Energy

Payout ratio:
14.0%

Net debt/capitalization:
11.1%

Source: Morgan Stanley

ACE Ltd; 2.7%

Ticker:
ACE

Sector:
Financials

Payout ratio:
24.0%

Net debt/capitalization:
N/A

Source: Morgan Stanley

Accenture PLC; 2.8%

Ticker:
ACN

Sector:
Information technology

Payout ratio:
39.2%

Net debt/capitalization:
-13.4%

Source: Morgan Stanley

Honeywell International; 2.8%

Ticker:
HON

Sector:
Industrials

Payout ratio:
32.9%

Net debt/capitalization:
-8.8%

Source: Morgan Stanley

Lear Corp; 2.9%

Ticker:
LEA

Sector:
Consumer discretionary

Payout ratio:
19.5%

Net debt/capitalization:
-25.6%

Source: Morgan Stanley

LyondellBasell Industries N.V. Cl A; 3.0%

Lyondell Basell, chemicals — LyondellBasell’s Polypropylene prdoucing plant in Bayport Lyondell Basell

Ticker:
LYB

Sector:
Materials

Payout ratio:
21.4%

Net debt/capitalization:
2.4%

Source: Morgan Stanley

Marsh & McLean Cos.; 3.0%

Ticker:
MMC

Sector:
Financials

Payout ratio:
40.7%

Net debt/capitalization:
N/A

Source: Morgan Stanley

INVESCO Ltd.; 3.2%

AP Images

Ticker:
IVZ

Sector:
Financials

Payout ratio:
36.6%

Net debt/capitalization:
N/A

Source: Morgan Stanley

Baxter International; 3.7%

Ticker:
BAX

Sector:
Health care

Payout ratio:
29.4%

Net debt/capitalization:
6.0%

Source: Morgan Stanley

Emerson Electric Co; 3.7%

Ticker:
EMR

Sector:
Industrials

Payout ratio:
44.2%

Net debt/capitalization:
-4.3%

Source: Morgan Stanley

General Electric; 3.7%

Ticker:
GE

Sector:
Industrials

Payout ratio:
44.2%

Net debt/capitalization:
12.6%

Source: Morgan Stanley

Nucor Corp.; 3.9%

Ticker:
NUE

Sector:
Materials

Payout ratio:
46.9%

Net debt/capitalization:
10.7%

Source: Morgan Stanley

Philip Morris International Inc.; 4.0%

Ticker:
PM

Sector:
Consumer Staples

Payout ratio:
65.0%

Net debt/capitalization:
12.5%

Source: Morgan Stanley

Pfizer Inc; 4.1%

Ticker:
PFE

Sector:
Health Care

Payout ratio:
41.6%

Net debt/capitalization:
3.7%

Source: Morgan Stanley

Now here are some more exciting stock picks...

Morgan Stanley Presents: The 20 Best Dividend Stocks In America

Archer Daniels Midland Co; 2.3%

Interpublic Group Of Cos.; 2.3%

Las Vegas Sands Corp; 2.3%

Cardinal Health; 2.4%

Western Union Co.; 2.4%

Colgate-Palmolive; 2.5%

Marathon Petroleum Corp.; 2.5%

ACE Ltd; 2.7%

Accenture PLC; 2.8%

Honeywell International; 2.8%

Lear Corp; 2.9%

LyondellBasell Industries N.V. Cl A; 3.0%

Marsh & McLean Cos.; 3.0%

INVESCO Ltd.; 3.2%

Baxter International; 3.7%

Emerson Electric Co; 3.7%

General Electric; 3.7%

Nucor Corp.; 3.9%

Philip Morris International Inc.; 4.0%

Pfizer Inc; 4.1%

Now here are some more exciting stock picks...

BARCLAYS: These Are The 20 Best Stocks In The World >

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Morgan Stanley Presents: The 20 Best Dividend Stocks In America

Archer Daniels Midland Co; 2.3%

Interpublic Group Of Cos.; 2.3%

Las Vegas Sands Corp; 2.3%

Cardinal Health; 2.4%

Western Union Co.; 2.4%

Colgate-Palmolive; 2.5%

Marathon Petroleum Corp.; 2.5%

ACE Ltd; 2.7%

Accenture PLC; 2.8%

Honeywell International; 2.8%

Lear Corp; 2.9%

LyondellBasell Industries N.V. Cl A; 3.0%

Marsh & McLean Cos.; 3.0%

INVESCO Ltd.; 3.2%

Baxter International; 3.7%

Emerson Electric Co; 3.7%

General Electric; 3.7%

Nucor Corp.; 3.9%

Philip Morris International Inc.; 4.0%

Pfizer Inc; 4.1%

Now here are some more exciting stock picks...

BARCLAYS: These Are The 20 Best Stocks In The World >

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