- 5 names with strong trends and high dividends.
- 5 names to avoid, despite the dividend yield.
- A total return approach using Trendrating can improve the selection process.
In this article, I want to look at all companies in the S&P 500 that currently have a dividend yield of at least 3%. Why 3%? Because that is the same yield you can currently get on a 10 year US Treasury. From this list, we can see which names are exhibiting the strongest momentum, as rated by Trendrating’s proprietary model. It’s not a surprise that many of these companies are exhibiting negative trends, as growth has greatly outperformed value for quite some time now. Of the 118 names meeting the criteria, only 29% are rated ‘A’ by Trendrating.