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Top 5 US Value Stocks

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With interest rates set to rise, investors are 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.

They each feature in the ETFS S&P 500 High Yield Low Volatility ETF (ZYUS).

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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 over 10 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.

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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 February 2022, Citigroup currently has the lowest price to book value of the big Wall St banks.

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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 has been hard-hit by covid-19, and the ongoing 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.

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Bristol-Myers Squibb

(NYSE: BMY)

BMS is one of the biggest names in global healthcare. It primarily focusses on creating new drugs that can treat serious diseases. The diseases it targets tend to be the big ones: cancers, heart diseases and arthritis. Its cancer-treating drugs Revlimid and Opdivo are the company’s two main products. However it is investing heavily in developing new drugs and patents. BMS’s intellectual property portfolio is one of the most impressive of any drug company.

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Coca-Cola