4 Value Blue Chip Stocks to Buy That All Yield 4% or More

Investing

Published: April 18, 2016 9:45 am

Last Updated: January 13, 2020 10:39 am

The low yield landscape many thought would start to change by this year is looking more and more like a longer term event. In fact, Bloomberg notes that the demand was so strong for the recent U.S. Treasury’s sale of 30-year debt that Wall Street bond dealers were left with the lowest percentage ever for an auction of the maturity. They also pointed out that the auction yield of 2.596% compares with 0.85% on similar-maturity debt from Germany and about 0.4% in Japan.

What that means for savers and investors looking for income is that stocks with good yields will remain the best avenue for the foreseeable future. We screened the Merrill Lynch research database for stocks that were rated Buy, and had at least a 4% dividend. We found four that fit the bill that look like outstanding values now.

Crown Castle International

This top cell tower stock offers incredible growth and income possibilities. Crown Castle International Corp. (NYSE: CCI) provides wireless carriers with the infrastructure they need to keep people connected and businesses running. With approximately 40,000 towers and 15,000 small cell nodes supported by approximately 16,000 miles of fiber, Crown Castle is the nation’s largest provider of shared wireless infrastructure, with a significant presence in the top 100 U.S. markets.

Numerous Wall Street analysts see the company as the cleanest play on U.S. mobile infrastructure spending. They cite the company’s low risk capital return strategy, upside optionality from the smaller cells and what they consider the company’s investment grade balance sheet. The company is structured as a real estate investment trust (REIT), so the dividends may contain return of principal.

Crown Castle shareholders receive a 4.06% dividend. The Merrill Lynch price target for the stock is $92, and the Thomson/First Call consensus target is $95.17. The shares closed Friday at $87.28.