2 top defensive stocks with plenty of dividend yield | news

Defensive top stocks with big dividends? You might be wondering about the F in the title. This is of course wrong. But it is an indication of which names we want to discuss in more detail today.

There are two candidates, both of which start with an F. Are you curious about which they are? So today we take a look at the two top defensive stocks that bring declining dividends. Oh, forgive me, of course I mean a lot…

Fielmann stock: Defensive top stock with high yield!

Of course: If the pun is that clear, it can fell man (WKN: 577220) is not missing from this overview. The German optical chain brings a lot of benefits for its defensive class. After all, the top share pays out 3.8% to investors based on an assumed constant distribution of EUR 1.50 per share. share in the future.

No question: That’s a lot for this top defensive stock. Corona has made life difficult for the German family-run company in recent years. At the same time, there is now a phase of high inflation, where fewer consumers are obviously inclined to buy new glasses. As a result, management lowered growth forecasts for the current year.

However, Fielmann is still a defensive, timeless top stock that now just pays a lot of dividend yield in historical comparison. We must not forget that the company is a leader in Europe and also continues to focus on growth. Glasses tend to be a more defensive product, falling somewhere between a medical device and a consumer product. In return, it provides more defensive class, which is worth watching with a yield of 3.8%. Finally, the price to cash flow ratio was recently below 10 based on the year 2021.

Frsenius: Also a lot to offer!

Also Fresenius (WKN: 578560) is a top defensive stock for me that has a lot going on right now. And yes: also a lot of dividends. Now that management has cut the growth plans for the financial year 2022, there is a greater likelihood that operations will stagnate. Yes, earnings per stock may even fall a little. Of course, this is not what investors want to see in the DAX Dividend Aristocrat.

But: With a dividend yield of 3.6% and a payout ratio of 28% recently, it seems quite manageable. The price-to-earnings ratio is also currently approaching 7.6, which seems pretty cheap. Earnings decline or not: Fresenius is already valued as a defensive stock that can deliver solid returns even when it stagnates.

The bottom line with this defensive top stock is: Which is more likely? That the share falls again by 10, 20 or 30% and thus becomes even cheaper than a Dividend Aristocrat with an actual stable business model? Or that it will rise over the long term due to its value and solid returns? Make up your own mind, but remember, while you wait, you’re basically getting a 3.6% yield and the trend should continue to rise.

The article 2 top defensive stocks with a (f)ield dividend yield appeared first on The Motley Fool Germany.

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Vincent owns shares in Fielmann and Fresenius. The Motley Fool recommends Fresenius.

Motley Fool Germany 2022

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