A Trio of High Return Non-Cyclical Stocks

Investors may want to consider the following non-cyclical stocks, as their earnings yields (as calculated via

Joel Greenblatt (Trades, Portfolio)’s method) are outperforming the 20-year high quality market corporate bond spot rate of 3.07% as of the writing of this article.

Greenblatt calculates the earnings yield as the company’s earnings before interest and tax (Ebit) divided by its enterprise value. This ratio represents a more reliable reference for the evaluation of non-cyclical stocks, whose earnings have little or no correlation with the business cycle (as the metric only looks at 12 months of business activities).

Tyson Foods Inc.

The first stock investors may want to consider is Tyson Foods Inc. (

TSN, Financial), a Springdale, Arkansas-based global food company offering beef, chicken and pork as well as processed, fresh and refrigerated food products to retailers and wholesalers.

The stock grants an earnings yield of 12.48% as of the September 2021 quarter. This stands above the median point of the past 10-year historical earnings yield range of 5.69% to 22.37%. Tyson Foods Inc.’s earnings yield ranks higher than 79% of 1,784 companies that are operating in the consumer-packaged goods industry.

The share price was trading at around $84.11 at close on Friday for a market capitalization of $30.68 billion and a 52-week range of $62.47 to $85.61.

Its price-earnings ratio is 10.09 and its price-book ratio is 1.73.

The stock grants a forward dividend yield of 2.19% as of Dec. 10.

NRG Energy Inc.

The second stock investors may want to consider is NRG Energy Inc. (

NRG, Financial), a Princeton, New Jersey-based independent energy producer.

The company grants an earnings yield of 20.49% as of the September 2021 quarter. This stands above the median point of the 10-year historical range of -17.49% to 21.98% and ranks higher than 95% of the 369 companies that are operating in the utilities – independent power producers industry.

The share price was trading at around $38.86 at close on Friday for a market capitalization of $9.51 billion and a 52-week range of $31.94 to $46.10.

Its price-earnings ratio is 3.90 and its price-book ratio is 2.33.

The stock grants a forward dividend yield of 3.35% as of Dec. 10.

Gilead Sciences Inc.

The third stock investors may want to consider is Gilead Sciences Inc. (

GILD, Financial), a Foster City, California-based pharmaceutical drug manufacturer.

The company grants an earnings yield of 9.45% as of the September 2021 quarter, standing slightly below the median point of the 10-year historical range of 0.39% to 18.84% and ranking higher than 83% of 1,110 companies that are operating in the drug manufacturers industry.

The share price was trading at $70.25 at close on Friday for a market capitalization of $88.12 billion and a 52-week range of $56.56 to $73.33.

Its price-earnings ratio is 11.99 and the price-book ratio is 4.11.

The stock has a forward dividend yield of 4.04% as of Dec. 10.