This article examines each of these 3 businesses based on the 5 Buy Rules from the 8 Rules of Dividend Investing. The 8 Rules of Dividend Investing identifies high quality businesses trading at fair prices based on several metrics including number of years of dividend payments without a reduction, long-term revenue per share growth rate, and standard deviation. It is difficult to find established businesses with high dividend yields and strong growth in today's overvalued market. General Mills (GIS), McDonald's (MCD), and Target (TGT) all have dividend yields over 3% and long-term revenue per share growth rates over 6%.

Target, General Mills, & McDonald's all have strong 10-year growth rates and high dividend yields. General Mills & McDonald's also have low volatility and average payout ratios. Target has fairly high volatility and a high payout ratio. As a result, both General Mills & McDonald's are Top 10 stocks based on the 8 Rules of Dividend Investing, while Target is in the top 40.

Source: Seeking Alpha

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5 Monthly Dividend Stocks to Buy for Retirement

Posted by D4L | Sunday, July 27, 2014 | 0 comments »

In December, I compiled a list of Monthly Dividend Stocks to Snag in 2014, which has proven to be one of my most popular articles of the past year. It’s not hard to see the appeal of monthly dividend stocks, particularly if you are retired and living off your investments. Your expenses — including everything from house and car payments to your utilities and mobile phone bill — are almost always on a monthly cycle, whereas most income-producing investments pay quarterly or semiannually. A monthly dividend makes basic budgeting and planning a whole lot easier.

But let’s say that you’re still years from retirement. A monthly dividend is still preferable because, if you reinvest your dividends in new shares, your share count will grow faster, speeding up the process of compounding. This matters very little over the course of a single month, but over an investing lifetime, it can have an outsized effect on your returns. I’ll point out that my list from December is a great set of monthly payers that are all positive for the year and beating the S&P 500. But today, I’m going to give you five new monthly dividend stocks: LTC Properties (LTC), Corus Entertainment (CJREF), Shaw Communications (SJR), The Tortoise Power & Energy Infrastructure Fund (TPZ) and Pimco Global StockPLUS & Income Fund (PGP).

Source: InvestorPlace

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With stocks trading near all-time highs, it is becoming more difficult to find good values. People feel that they are forced to buy stocks because interest rates are so low, and so while stocks appear expensive, they are also a superior alternative to bonds, which are at historically high levels, as well as cash, which yields virtually nothing. But even if you feel that you need to own stocks, you don’t necessarily have to buy overvalued stocks. There are plenty of value opportunities for investors who look under the radar, and I list three here. Averaged together, these three stocks trade at about half the price-to-earnings multiple of the S&P 500, and they also yield about three times as much, making them especially appealing for value investors. Furthermore, I think they are quality companies: they aren’t cheap because of some problem with the firm.

Hercules Technology (HTGC) is what is referred to as a business development corporation, or a BDC. A BDC provides startup capital to small companies in exchange for interest payments and some stock warrants, or the right to buy a certain amount of the company’s stock at an agreed-upon price. AT&T (T) is not really an under-the-radar stock, but it is one that investors should consider. Alliance Resource Partners (ARLP) has bucked the downtrend in coal. While many coal companies have seen enormous losses, cut their dividends, and have seen their stock prices fall by 80 percent or more, Alliance Resource Partners is trading near an all-time high and pays a 5.4 percent dividend.

Source: Wall St Cheat Sheet

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If you haven't heard, dividend stocks are all the rage . Investors want yields, and dividend stocks currently offer the best ones. However, high yields aren't the only factors investors should take into consideration when selecting dividend stocks. After all, companies can raise, cut, or halt dividend payments whenever they see fit, and high yields can make it difficult for companies to sustain their dividend payments-especially if they experience several quarters of bad earnings.

When a company has a high debt/equity ratio, it means that it's relying heavily on debt to operate and grow, which has the potential to impact earnings down the line (interest on the debt becomes an added expense). Do you think these dividend stocks with no debt will be able to sustain their high yields? Use this list as a starting point for your own analysis: ATA, Inc. (ATAI), Capitol Federal Financial, Inc. (CFFN), Compuware Corporation (CPWR), CTC Media, Inc (CTCM), NL Industries Inc. (NL) and New Mountain Finance Corporation (NMFC).

Source: NASDAQ

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Utilities Not So Boring After All

Posted by D4L | Friday, July 25, 2014 | | 0 comments »

Do you think that utility stocks are boring? Consider this. As of June 30, Fidelity MSCI Utilities, an index that tracks the performance of U.S. utilities, had returned 18 percent for the year, triple the S&P 500's 6 percent gain for the same period. With the economy expected to strengthen in upcoming months, some pundits advise that it's too late to buy utilities. They say that utilities underperform in a strong market. Not so. My research found that, as a group, utilities typically keep up with the S&P 500 in strong markets. But what if the consensus view is wrong and instead of growing, the economy tanks? Sure, utility stocks will drop with the overall market. But most pay relatively high dividends. Further, because they produce steady and predictable cash flows, dividend cuts are rare. Thus, you'll still receive regular dividends while you wait for a recovery.

My screen listed five utilities when I ran it on Wednesday. One Emera (EMRAF), a Canadian utility, doesn't trade enough shares on U.S. exchanges to be a viable candidate. Here are the remaining four: Duke Energy (DUK), which is paying a 4.3 percent expected yield, Empire District Electric (EDE), 4.1 percent yield, Hawaiian Electric Industries (HE), 4.9 percent yield, and PPL Corporation (PPL), 4.3 percent yield. As always, consider the screen results to be research candidates, not a buy list. The more you know about your stocks, the better your results.

Source: Santa Cruz Sentinel

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