Top 5 Value Stocks

With interest rates steadily rising this year, investors have started embracing value stocks once more. As they do, questions inevitably arise about how to identify value stocks. One strategy is to target companies with larger dividends. As only companies trading on lower prices can pay larger dividend yields. Below we look at the top 5 dividend-paying stocks in the US.

AbbVie (NYSE: ABBV)

AbbVie is one of the core companies riding under the label “big pharma”. It started out as part of Abbott Labs, another big pharma stable, until it was spun off in 2013. AbbVie is known within the pharmaceutical industry for its history of innovation. On this score, it currently has several programmes in phase 3 trials. While mostly focussed on immunology, they have made a series of acquisitions that have allowed them to branch into neuroscience and aesthetics.

Citigroup (NYSE: C)

One of the world’s largest commercial banks, Citigroup is the fourth largest US lender by assets. Its share price has underperformed its Wall St peers – JP Morgan and Bank of America – in recent years as the firm has exited non-US retail banking. Under its new CEO, the firm is focussing on commercial and retail banking in its home US market, doubling down on its highly regarded wealth management and trading divisions. As of September 2022, Citigroup currently has the lowest price to book value of the big Wall St banks.

Boston Properties (NYSE: BXP)

Boston Properties is not a household name in Australia. However, it is one of the largest office property developers and managers in the world. It mostly owns properties in the most expensive office spaces in Boston, Los Angeles, New York, and San Francisco. As might be expected, the company was hard-hit by Covid-19, and the trend to work from home. Its share price is yet to recover to pre-pandemic levels. But as a REIT it enjoys tax advantages and a strong dividend yield.

Cisco Systems (Nasdaq: CSCO)

Cisco is a diversified technology company. It makes a lot of the hardware that makes the internet possible, like routers and switches. It also increasingly makes software, including videoconferencing software Webex, that became popular during the pandemic. The company rose to fame as one of the major culprits of the dotcom bubble in 2000, where it soared to become one of the largest companies in the world. But these days, Cisco is a lot more down to earth. It is now one of the more reliable dividend-paying technology stocks, and trades on a very reasonable valuation.

Newmont (NYSE: NEM)

Colorado-based Newmont is the world’s largest gold mining company. It mines other things too: like copper, zinc and lead, sometimes as a by-product of its gold mining. Like a lot of mining companies, Newmont pays a reliable dividend. These dividends have been supported by the higher gold price in recent.

Conclusion: Access High Dividend Low Volatility Stocks with ZYUS

For those interested in higher dividend-paying US stocks, but not fully comfortable trying to pick these stocks themselves, the Global X S&P 500 High Yield Low Volatility ETF (ZYUS) may provide one solution. The fund invests in 50 high-yielding, low-volatility stocks from the S&P 500. According to data from S&P Global, the index has provided a dividend yield that has historically been higher than the S&P 500, while also less volatile.