5 High Yield Stocks From The S&P 500 With Lowest Debt To Equity Ratio - Seeking Alpha

Many investors own stocks from the Dow Jones and the S&P 500. Both indices include 500 leading companies in leading industries of the U.S. economy, capturing 75 percent coverage of U.S. equities. 19 companies from the S&P 500 have yields above 5 percent (high yield). At the first view, they give you an attractive income if the payments are sustained. Some major criteria for persistent dividends are the business cyclic, the payout ratio and the debt situation. Remember, a highly leveraged company with big payout ratio hides a huge risk for a dividend cut.

In order to avoid some negative surprises in terms of dividend cuts, I screened the S&P 500 Index by stocks with a dividend yield of more than 5 percent as well as a debt to equity ratio of less than one. The debt ratio shows that the company has more equity than debt and is solid financed. There are only five stocks that fulfilled my mentioned criteria. These are the detailed results sorted by yield: