Average Yield and Valuation of 63 Safe Stocks

After the short term sell-off and bounce back last week I think its time to take a quick look at yield averages on each stock on the safe dividend list. Average dividend yield is a good valuation metric because its is always tied to stock price. It becomes even more reliable on companies that have a long track record of increasing dividends. Each company on this list has increased its dividend for 20 years or more.

When a stock’s current yield is below its 5 year average it could be considered over bought, or overvalued. So of course the opposite is true when the yield is above its 5 year average.

All of this info is available on Yahoo Finance under key stats. The results are in and I’m not surprised that only 8 of the 63 stocks on this list are trading with a higher yield than average. In fact this list suggests that these stocks as a whole could be as much as 15% over valued.

It was interesting though to see that Exxon and Wal-Mart are both trading with a higher dividend yield than normal.

A couple of quick notes:

  • A positive “value difference” means the stock is trading with a yield more than its average and could be under bought.
  • A negative “value difference” means the stock is trading with a yield less than its average and could be over bought.
CompanySymbolYrs of Div
5yr Yield
Family Dollar StoresFDO341.71.65.88%
Raven IndustriesRAVN241.61.60.00%
Ecolab IncECL251.11.4-27.27%
Grainger (W.W.)GWW391.41.7-21.43%
Cintas CorpCTAS281.41.7-21.43%
UMB FinancialUMBF201.61.9-18.75%
Hormel FoodsHRL441.72.1-23.53%
VF CorpVFC381.93-57.89%
Lowe's Companies Inc.LOW491.71.8-5.88%
Target CorpTGT39220.00%
McCormick & CoMKC251.92.4-26.32%
Archer-Daniels MidlandADM362.32.18.70%
Dover CorporationDOV551.82.4-33.33%
T. Rowe Price GroupTROW2522.1-5.00%
Chubb CorpCB4622.5-25.00%
PPG Industries, Inc.PPG391.63.2-100.00%
Wal-Mart Stores IncWMT352.52.212.00%
Becton Dickinson & CoBDX38220.00%
Stanley Black & Decker IncSWK432.52.7-8.00%
Exxon Mobil CorporationXOM282.82.317.86%
Illinois Tool Works IncITW252.12.9-38.10%
Coca-Cola CoKO482.72.9-7.41%
Medtronic, Inc.MDT3422.2-10.00%
3M CoMMM522.32.7-17.39%
Aqua America IncWTR202.52.9-16.00%
Automatic Data ProcessingADP352.53.1-24.00%
McDonald's CorporationMCD343.13.2-3.23%
Walgreen CompanyWAG352.22.20.00%
Genuine Parts CoGPC542.83.5-25.00%
General DynamicsGD202.82.67.14%
Air Products & ChemicalsAPD2832.710.00%
1st Source CorpSRCE202.83.1-10.71%
Diebold IncDBD573.63.60.00%
PepsiCo IncPEP392.83.1-10.71%
American States WaterAWR573.133.23%
Eaton VanceEV2922.7-35.00%
Questar CorpSTR312.93.6-24.14%
RPM InternationalRPM372.83.9-39.29%
Bemis CoBMS252.63.1-19.23%
AFLAC IncAFL282.52.50.00%
Emerson ElectricEMR542.83.1-10.71%
Procter & GamblePG573.13.2-3.23%
Clorox CoCLX3433.2-6.67%
UGI CorpUGI202.93.4-17.24%
McGrath RentCorpMGRC202.93.5-20.69%
Johnson & JohnsonJNJ483.13.3-6.45%
Sysco CorpSYY353.33.6-9.09%
Community Bank SystemCBU203.63.9-8.33%
Northwest Nat GasNWN554.23.89.52%
Consolidated EdisonED364.34.8-11.63%
Atmost EnergyATO203.44.4-29.41%
Vectren CorpVVC354.25.2-23.81%
HCP IncHCP254.45.3-20.45%
Leggett & PlattLEG393.65.1-41.67%
National Retail PropertiesNNN214.46.5-47.73%
Universal Health REITUHT205.56.5-18.18%


  1. Wow, pretty clear there’s not a lot of great discounts to be had when looking at this list. I’m still interested in a couple of these where the yield / historical yield disparity is <5% and the business is a quality one (ie Colgate)

  2. Dividend Ladder

    I agree. You have to look at each stock on a individual basis and decide for yourself. It’s hard to say a small deviation from the average really means its over valued.

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