4 AAA-Rated Companies With Attractive Yields

Company Price (7/26/11) Dividend Yield Payout Ratio Automatic Data Processing (ADP) 53.18 2.70% 56% Johnson & Johnson (JNJ) 65.92 3.40% 44% Microsoft (MSFT) 28.08 2.40% 25% Exxon Mobil (XOM) 84.37 2.20% 28% SPDR S&P 500 (SPY) 133.33 1.84% not avail iShares Barclays 7-10 Yr Treasury (IEF) 97.45 2.69% not applic With the loss of the coveted AAA rating by Berkshire Hathaway (BRK-A) after the consummation of the BNSF Railway acquisition, there are now only four companies left in the S&P 500 with the top credit rating. AAA credit worthiness is regarded by the three bond credit agencies [Moody’s, Standard & Poor’s (S&P), and Fitch] as having the extreme strong capacity to meet financial commitments. As we can see from table below, there is a less than 0.70% chance of default on AAA bonds. Source: Municipal Bond Fairness Act (HR 6308) As of April 2011, there were four companies rated AAA... Read more