Dividend Yield: 1.6%
The next company on the list — Japanese auto giant Toyota Motor Company (NYSE:TM) — might be a little bit of a stretch as a “dividend” stock. At current prices, it only yields 1.6%. Still, in a low-yield environment, that’s not half bad and it’s better than the current yield on the 10-year Treasury.
Toyota makes this list because it is the maker of the Prius, the car that made it “cool” to own a hybrid. For any readers that haven’t had the experience of driving one, the Prius is an impressive piece of engineering, to the point of sounding like something from a science fiction movie. Even the brakes are a high-tech wonder; every time you put your foot on the brake pedal, the kinetic energy that normally would be lost to heat gets recaptured and converted into new power for the car.
Just a few years ago, I might have thought this was something from a Star Trek episode, but Toyota has made this technology available to the masses.
Global auto stocks are cheap and out of favor right now, and Toyota is no exception. At current prices, it trades for just 9 times expected earnings, 0.49 times sales and 0.96 times book value.