Last Friday, after the Federal Reserve said the bigger banks could once again hike dividend payouts, investors scrambled to buy shares of blue chip financials. But when Foot Locker announced in February it was hiking its dividend, investors barely noticed. Maybe they should have: Investing pros say midsized companies that pay dividends may be a better bet than the giants.

About 244 mid-sized companies – defined as having a market value between $750 million and $3 billion – pay dividends, compared to 384 dividend-payers in the Standard & Poor's 500 index. But those that do possess many of the same appealing traits as their larger counterparts – strong cash flows, stable business models and less volatility than non-dividend-paying stocks. There's also added potential for faster growth, traditionally a reason investors like midcap stocks in general.

Source: Smart Money

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Dividend stock investors looking for the best high-yield investments don’t need to pore over an arcane list of companies. Some of the best high-yield dividend-paying stocks are famous blue chips that make up the Dow Jones Industrial Average.

It’s no secret why. A good dividend stock has an established brand, reliable cash flow and a fairly stable business model. The top dividend-paying stocks in the Dow are household names that aren’t going anywhere and, thus, can offer big dividends without the fear that sales will dry up and cause the dividend yield to dry up in kind. But even among the high-yield dividend stocks in Dow, there is clearly a hierarchy of investments. Some throw off 3%, but others offer a dividend yield of 4%, 5% or even 6%.

Source: Investor Place

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Pointing to a recent study, we showed that the average return of high dividend yielding stocks was 13.04% between 1927 and 2009. Dividend stocks beat the overall market by an average of 1.36% per year in that period. These are risky times for fixed income investors. Ten-year treasuries yield less than 4% and the Federal Reserve is pursuing a highly inflationary monetary policy. Legendary investors Warren Buffett, George Soros, and Jim Rogers already voiced their concerns about the Fed’s policy. Warren Buffett thinks investing in long-term bonds is a bad idea.

For conservative investors who don’t want to speculate about commodities and want a stable quarterly income, we prepared a list of 35 dividend paying stocks that have below market average PE ratios and managed to increase their earnings per share over the past 5 years. A portfolio of these stocks should be able to make its dividend payments, preserve capital by increasing earnings per share over the long term, and protect investors against possible spikes in inflation. The data is sourced from Google Finance. We expect these stocks to perform better than 10-year treasuries over the next 10 years.

Source: Business Insider

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On Monday, AT&T (NYSE: T) announced its head-turning $39 billion bid for T-Mobile. Wireless rival Sprint Nextel (NYSE: S) is screaming bloody murder, so you can safely conclude the deal gives AT&T some important competitive advantages. On the other hand, I’m less thrilled about the price: 7.1 times EBITDA (T-Mobile’s earnings before interest, taxes, depreciation and amortization). T itself is trading at 5.9 times EBITDA, so management will have to swing the cost axe hard to make the numbers work.

All in all, I’m willing to accept the terms because, by purchasing T-Mobile, AT&T will shrink the obsolescent local wireline business to less than 15% of sales. Sometimes, to escape a technological trap, you have to fork over big bucks. I’m sure the buggy-whip makers wished they had bought a car company — almost any car company, at almost any price — around 1903. In short, I view this transaction as a franchise saver rather than a franchise builder. Buy T at $29 or less.

Source: Investor Place

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Although blue chip stocks usually share certain quantifications such as large market capitalization and dividend payouts, much of their status is derived from high qualifications which are slightly more intangible. Scanning for such companies based on a few simple numerical guidelines may not yield the desired list of blue chip stocks. Instead, try looking for them in an index. An index is simply a basket of stocks with a commonality, merged, and displayed as one large combined price. An index could represent an entire exchange, a selection of small growth stocks, or income-generating blue chip stocks.

Some indexes, such as the S&P 500 Dividend Aristocrats, call for a long history of increasing dividends. While this criteria is a good start, you will need to make sure that the yields are also stable. For instance, a company may trade at $100 and the dividend payout is $10 per share. 25 years later the share price is $500 and the dividend payout is $25. While the total payout has increased, the yield has dropped in half.

Source: Money Crashers

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Yes, dividend investing is popular. And it may become even more popular, now that Congress has extended legislation that maintains the low tax rate on corporate payouts for next year. You can find many great dividend stalwarts among the companies that have successfully paid out cash for decades. When searching for great dividend stocks, it makes a lot of sense to start with companies that have been playing the dividend game the longest.

Standard & Poor's has culled the dividend winners from the also-rans in a list it calls the "dividend aristocrats." These companies have paid and increased their dividend for at least 25 years. Standard & Poor's announced its annual adjustment to the dividend aristocrats in December, so this is the latest version of the popular list. Below are the 25 highest-yielding constituents, and you can click on any of the green plus signs next to the ticker symbols to add those stocks to your watchlist and get all of our Foolish analysis on the stock.

Source: Motley Fool

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Record earnings fueled by the highest profit margins since 1993 are giving executives more leeway than ever to boost dividends as the bull market enters its third year. Margins will climb to 8.9% this year, the highest level in at least 18 years, according to data compiled by Bloomberg through March 11 on non-financial companies in the S&P 500.

Greater profitability, combined with dividend cuts during the credit crisis, have pushed earnings to 6.53% of the gauge's price, or 3.5 times more than its payout rate, close to the record 3.6 multiple in January. “The economy seems to be doing well, and earnings are on the recovery path, which companies wanted to be sure about before they raised their dividends,” said John Carey, a money manager at Pioneer Investments, which oversees about $250 billion. “I feel relatively confident that most of the dividends out there are secure, and we'll see some fairly broad-based increases.”

Source: Investment News

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The news hit Friday that the Federal Reserve is allowing big banks to pay sharply higher dividends. I don't understand how the Fed justified that decision. And not just because the results of the so-called "stress tests" are secret. At least our four biggest banks are insolvent, Adam Levitin explains at the blog Credit Slips. The banks' balance sheets only come out in positive territory if home equity loans made during the bubble years are valued at much closer to their face value than good accounting or even common sense would dictate

So why are the banks being allowed to give away cash to their shareholders that would be better applied to shoring up those shaky, fictional balance sheets? Yes, bigger dividends means the big executives, who are also big shareholders, get to pay themselves even more "compensation," but I'm not cynical enough to imagine that's what motivated the Fed to give the OK. So what gives?

Source: Daily Finance

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We would like to draw attention to a theme that is a value investor's favourite during times of market meltdowns. It goes by the name 'high dividend yield stocks'. High dividend yield essentially means stocks that earn higher dividend per share as compared to their market price. A ratio of dividend to price per share indicates the investors' return on capital purely from dividends earned. During times of earnings downgrades we often find investors lapping on to stocks where the dividend payout is good. But the sad part is that they do so even if the valuations are expensive. The dividend yields are in fact a safer way to buy into stocks that have a steady history of dividend payouts.

Another advantage of having fundamentally sound dividend stocks in one's portfolio is the fact that these tend to be relatively stable vis-à-vis the markets. That is in the event of a considerable fall in overall markets, the prices of these stocks remain relatively less affected. This is primarily because during times of falling prices, the dividend yields of these stocks become very attractive. As a result of this, the downside in these stocks is limited until and unless there is something seriously wrong with the fundamentals of the company. Moreover, these stocks tend to appreciate with the general markets, though the rise may not be very spectacular. Thus, dividend stocks are a good option for investors with lower risk appetite and who prefer a steady income with a scope for capital appreciation.


Source: Equity Master

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AT A media lunch earlier this year, the host - a US investment bank - asked the guests for their views of the market in 2011. My response was: 'Everybody seemed very bullish. When everybody's bullish, it might be prudent to be cautious.' Another guest said his view was that this year would be another good year. And the host said he agreed.

Year to date, the Straits Times Index (STI) has slumped by some 8 per cent. Our portfolios, made up of mostly small-cap stocks, saw a bigger decline of about 13 per cent on average. Against the onslaught of bad news after bad news, the highest dividend yielding portfolio has shown to be the most resilient. It has shed 8.5 per cent year to date.

Source: Business Times

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Dividend stocks from the banking sector are expected to see increased payouts in the upcoming year, according to a Motley Fool report. Big banks Wells Fargo, JPMorgan Chase, and US Bancorp are expected to announce by next Monday their plans to raise dividends. The big question is whether or not dividend investors, burned by both plunging stock prices and slashed dividend earnings in the financial meltdown of 2008, will be ready to reenter the market. “Will investors welcome those companies back to the dividend-paying fold with open arms?” asked the report. “Or will memories of disappearing income and ugly brokerage statements keep investors skeptical about their futures?”

Such a move by banks has been anticipated since December, when Wells Fargo, Bank of America, and PNC all expressed a desire to pay shareholders through share buybacks and dividends. The Fed will play a large role in how the banks make decisions. “Just as government pressure following the TARP bailouts during the financial crisis almost certainly played a role in the banks' decisions to cut their dividends two years ago, the Federal Reserve's input on the banks' capital plans should be a key part in whatever decisions the banks make in restoring their payouts,” said the Motley Fool.

Source: Third Age

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No one remembers the financial crisis and market meltdown of 2008 and 2009 better than dividend investors. They suffered the double-hit of plunging stock prices along with big dividend cuts from many of their favorite stocks. But in the latest sign that the stock market has put its history behind it, the sector that the crisis arguably hit the hardest is about to get their stocks back on the dividend bandwagon. But will investors welcome those companies back to the dividend-paying fold with open arms? Or will memories of disappearing income and ugly brokerage statements keep investors skeptical about their futures?

Obviously, the decision each bank makes will depend on its particular circumstances, including capital requirements, loan loss provisions, and other liquidity needs. But if the banks start with dividends equal to a modest 20% of estimated 2011 earnings, as analysts from RBC Capital suggest could be a reasonable starting point, you could see some huge increases from current levels.

Source: Motley Fool

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It's amazing how contradictory individuals can be when it comes to matters of money. Ask someone why they have a savings account and the likely answer is to have that money earn interest over the long term. Ask someone why they invest in stocks and the likely answer is something similar. So why don't people treat these two types of investment in a similar way? In fact, if you invest prudently, both a savings account and a stocks account can be used the same way - the only difference is that you're likely to get a much better return with stocks.

To invest in stocks for the long term and to treat them like your long-term savings account, you need to invest your money in quality companies at attractive prices. Fortunately for investors, doing so hasn't been this easy in a long time. Today, some of the best value-to-price gaps exists within the best blue chip type businesses. While they have done well, they have not responded to the rally like the stock prices of inferior businesses that have weaker balance sheets and an inconsistent history of profitability. And since many of these names today pay out unbelievable dividends, the annual returns should be very attractive over the next several years.

Source: Investopedia

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One of the most popular rules of financial planning is that as you grow older, your portfolio should be more conservative. Although that maxim is largely true for the majority of investors, you shouldn't automatically draw the conclusion that many people jump to next: that you should own a bunch of ultra-safe bonds in your portfolio as you get close to retirement.

Underlying that general advice is something that's specific and unique to every single person out there: When it comes to saving for retirement, what you've done in the past largely defines what you'll need to do in the future. In particular, the less financially secure you are as you approach and enter retirement, the less you can afford to reduce your risk dramatically and still be assured that you won't run out of money.

Source: Motley Fool

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It’s difficult to see a bright side of this catastrophe right now. But in the financial markets, at least, Japan’s woes have struck a thunderbolt of common sense into investors who, in recent weeks, had become increasingly detached from reality. Oil prices are falling. So are gold prices and stock prices — all welcome developments, in my view, because the previous uptrends had carried too far, fostering a dangerously unstable condition.

Now that prices have backtracked, value investors can step up our buying. Start with the market’s Steady Eddies, companies like Johnson & Johnson (NYSE: JNJ) and Procter & Gamble (NYSE: PG). Both are trading closer to their 52-week lows than highs, and both are paying generous dividends (above 3%). Buy JNJ at $62.50 or less and PG at $64 or less.

Source: InvestorPlace

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Even as ordinary investors look forward to the prospect of larger dividend payouts by the big banks, another group is poised for a rich payday: bank chief executives. In the next few days, the Federal Reserve is expected to give a handful of institutions, including JPMorgan Chase and Capital One, permission to pay higher dividends, another sign of the remarkable comeback of banks since the depths of the financial crisis.

Jamie Dimon, chief executive of JPMorgan Chase, stands to eventually reap nearly $6 million a year in dividend payments from the stock he owns, an amount that equals almost a third of his total pay in 2010. Capital One’s chief executive, Richard D. Fairbank, could earn nearly $3 million a year as the credit card giant weighs a similar move.

Source: The New York Times

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When considering dividend stocks to add to their portfolios, investors often look for reassurance that they'll receive the payouts they're promised. The most common way of determining if a company can afford to pay its dividends is to compare them to earnings, making certain that the latter can cover the former. The problem is, it's fairly easy for management to manipulate company earnings. Cold hard cash, on the other hand, doesn't lie. So it's not a bad idea to take a look at a company's cash holdings as well.

For this list, we found high dividend yield stocks with sufficient cash to cover at least two quarters of the past year's average quarterly operating expenses. To do so, we calculated the average quarterly operating expense over the past four quarters and compared it with current cash holdings for each firm. These companies have more than twice the amount of cash needed for one quarter's operating expenses, which means they should (at least theoretically) be able to cover their high dividend payments. But of course, there are no guarantees -- be sure to use this list as a starting point for your own analysis

Source: Motley Fool

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With Japanese radiation fears plummeting major indexes around the globe, let us look at some of these small cap names that are still in the green this morning. Capstead Mortgage Corp. (NYSE:CMO) has gained 0.92% or $.11 a share to settle at $13.16 with a volume of 154,000 shares. Company pays a hefty dividend of 11.96% and has a trailing 12 month earning per share of $1.52. For the past twelve month, it had a trailing P/E ratio of 8.5 and an average beta of 0.46. For the past 52 weeks the stock has been trading between $13.34 and $8.12.

Another stock that is in the green today is Invesco Mortgage Capital (NYSE:IVR) with a 17.1% dividend yield. The stock has been relatively unchanged today, rising only 0.1% or three cents a share to settle at $23.38 with a volume of 307,000. Company focuses on investing, financing and managing residential and commercial mortgage-backed securities and loans. it recently announced a quarterly earnings of one dollar per share, which was a positive surprise of 4% above its consensus of 0.96. Over the past four quarters it reported three positive in line EPS surprises and one negative by 2% shortcoming. overall the stock is considered a by as it has a current target price of $24.40.

Source: Small Cap Network

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Looking at the actions by the big four banks, Bank of America cut its quarterly dividend in half (from $0.64 per share to $0.32) in October 2008, before cutting it again to $0.01 per share in January 2009. While Citigroup cut its dividend much earlier, from $0.54 per share to $0.32 in January 2008, the firm followed a stair-step path down with its dividend, which fell to $0.16 per share in September 2009, dropped down to $0.01 in January 2009, and was finally discontinued in February 2009. Even though they held up a lot better than either Bank of America or Citigroup, both J.P. Morgan and Wells Fargo cut their quarterly dividends by around 85% to $0.05 per share during the first quarter of 2009. While many of the top U.S. banks have repaid their TARP obligations during the last two years, the restrictions on dividend increases have remained in place.

That may all change this year, though, as the top 19 banks are currently going through another round of stress tests and may finally get approval from the Federal Reserve to raise their dividends. J.P. Morgan recently suggested that it likely would be getting an answer on its request to raise its dividend the week of March 21, 2011; back in January, CEO Jamie Dimon talked up the prospect of a $0.75-$1.00 per share annual dividend (compared to $0.20 currently). Believing most of the banks that are eager to raise their dividends have already talked about target ranges and are just waiting for the Federal Reserve's approval before pulling the trigger3.

Source: Morningstar

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The company projected that its 2011 earnings per share would hit $3.22-3.32, versus a consensus of $3.30 per share, while its revenues are expected to increase 6-8% for the year. The automotive company is making gross margins its highest priority during the coming year, saying that it would tighten and manage its expenses in order to boost its earnings per share.

Genuine Parts, parent company of Napa Automotive Parts, said the board increased the cash dividend payable to an annual rate of $1.80 per share compared with the previous dividend of $1.64 per share. The quarterly cash dividend of 45 cents per share is payable April 1 to shareholders of record March 11. GPC has paid a cash dividend every year since going public in 1948.

Source: Daily News Pulse

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At least by the sound of it, you'd think that high dividend yield would be an unequivocally good thing for your holdings. Sure, big fat dividend yields mean more immediate cash in your pocket. But remember, dividend yield is only a comparative measure. Calculated by dividing annual dividend per share by price per share, dividend yield is a ratio that shows how much a company pays in dividends relative to share price. If a stock takes a nosedive, dividend yield will consequently see a spike. So high dividend yield can often be a red flag, indicating very high risk ahead.

We took our pool of high yield dividend stocks with high liquidity ratios, and looked to see which of them were getting snapped up by company insiders. When a firm's executives are willing to put their personal piggy bank at stake to buy the shares of their employers, it's a good sign that they think dividend return outweighs the additional risk.

Source: Motley Fool

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Yield-starved investors soon may have another place to reap higher dividends: bank stocks. The sector has long been popular with retail investors because of its healthy dividends. But banks were forced to cut or suspend their payouts during the financial crisis. Now, many are anxious to raise dividends or buy back shares to underscore their improved health. But before they can, banks must pass the Federal Reserve's latest "stress test"—the results of which will be disclosed to them later this month.

Bank stocks have run up in recent months partly on anticipation of higher dividend yields. On Tuesday, shares of Bank of America, whose current dividend yield is 0.28%, jumped 4.7% on news that it had asked the Fed to allow it to approve a "moderate" increase in its dividend in the second half of the year. Other financial stocks, including J.P. Morgan, American Express Co., PNC Financial Services Group Inc., Citigroup Inc. and Wells Fargo & Co. also rose in trading on Tuesday.

Source: Wall Street Journal

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Summary only...

Getting income from your investment portfolio is hard these days, and the immediate reaction to the tragedy in Japan has been for yields of T-notes to fall back down again. The solution could be in a portfolio of large, well established firms that pay high dividends. Ideally, you would want dividend companies that not only continue to provide regular dividend checks, but ones that increase them over time. The best safety measure for a dividend is a reasonable payout ratio. Very few companies are able to pay out everything they earn and still grow, and if the payout ratio gets up into the 70’s or 80’s the dividend tends to be vulnerable.

One can never be sure if a dividend will grow in the future, but firms that have a history of increasing their dividends each year are more likely to continue doing so than non-dividend paying firms are likely to initiate one. Firms that have cut their dividends in the recent past are not the ones you want to look for if you are concerned about the current dividend.

Source: Zacks

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Summary only...

Record earnings fueled by the highest profit margins since 1993 are giving executives more leeway than ever to boost dividends as the bull market enters its third year. Margins will climb to 8.9 percent in 2011, the highest level in at least 18 years, according to data compiled by Bloomberg on non-financial companies in the Standard & Poor’s 500 Index through March 11. Greater profitability combined with dividend cuts during the credit crisis have pushed earnings to 6.53 percent of the gauge’s price, or 3.5 times more than its payout rate, close to the record 3.6 multiple in January.

“The big multinational, big dividend payers continue to be where the value is,” Michael Holland, who oversees more than $4 billion as chairman of Holland & Co. in New York, said last week in a Bloomberg Television interview. He owns Wal-Mart shares and said he would “absolutely” buy more, “given the cash generation they do, the dividends they are going to be paying in the future, the kinds of things they’re doing for shareholders.”

Source: Bloomberg

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Summary only...

Being very aware of not wanting to sound insensitive to the massive amount of suffering being experienced by Japan after the horrible calamity it's dealing with, I will attempt to bring analysis that is both beneficial to the investor and to the country. To the investor by presenting an investment in Japanese companies that offer an extreme value when compared to most other countries, and to Japan by making investors aware of places to put their capital, which Japan needs, within the country's borders.

With the news being as bad as it is, opportunity from fearful investor selling is staring the long term, deep value investor in the face. It might be wise to wait for the true scope of the disaster to be made known before buying, but the current crisis has made very cheap companies that pay a nice dividend even cheaper. Investing in Japanese companies is also a very small way that we can help, by supporting the Japanese markets with fresh capital.

Source: Seeking Alpha

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Summary only...

If you're like most investors right now, you're probably paying close attention to dividend stocks. Their combination of current income and growth potential has never been more attractive, especially as the two-year-old bull market ages and risk-averse investors get increasingly nervous about a potential correction.

The best dividend stocks not only pay a healthy percentage of their stock price to shareholders but also raise the amount they pay regularly. To stay ahead of the curve, it's helpful to track the dividend stocks that are most likely to reward investors before they make moves to increase their payouts.

Source: Motley Fool

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Summary only...

Investors bruised by the stock-market downturn have turned to dividend-paying shares for safety and stability. That usually means the Dow Jones Industrial Average is the beneficiary. Dividend stocks are attractive during times of uncertainty because of the consistent cash payout, and the fundamental belief that companies with large dividends are more prudent. While share prices can move erratically, as the market has during the violence and unrest in the Middle East, dividends typically hold steady. Since Feb. 18, the S&P 500 has dropped 3% and is now below its 50-day moving average, which is a negative technical indicator. The environmental disaster in Japan, the world's second-largest economy, may also cast a pall on global growth and investing.

Still, several under-$5 companies such as Chimera Investment (CIM) offer fast growth as well as outsized dividend yields to those willing to take on greater risk. But for several stocks trading under $5, the dividend yield -- and risk -- are much higher. For long-term investors, the recent pullback has afforded a lower entry point in several high-yielding dividend stocks that trade for less than $5, including Chimera, Universal Insurance Holdings (UVE) and Primedia (PRM).

Source: The Street

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Amgen Inc (AMGN.O), a biotechnology company whose fastest-growing days may be history, may be leaning toward paying its first dividend as investors clamor for distribution of its massive cash holdings. The California biotech held more than $17 billion in cash and marketable securities at the end of last year.

Recent surveys by ISI Group and Sanford Bernstein suggest that Amgen should pay out as much as $1.25 billion a year to investors, many of whom are concerned that the company might deploy its cash in an ill-advised acquisition. That would represent a yield of 2.5 percent, compared with yields of between 4 percent and 5 percent for traditional drugmakers like Pfizer Inc (PFE.N) and Eli Lilly (LLY.N). "The biggest issue investors have is their use of capital," Sanford Bernstein analyst Geoffrey Porges said of Amgen. "Share buybacks don't appear to have created much value."

Source: Reuters

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Technology is a perennially hot space for investors looking for momentum or growth ideas, but it can also be a fertile area for investors who like to couple earnings growth with dividends. Although the range of "dividend growth" options in the tech sector is still limited when compared to more traditional sectors like consumer staples, dividend investors have a few valid options when it comes to diversifying toward the tech sector.

It is admittedly difficult to find tech stocks that pay out enough of their earnings and trade at a reasonable enough valuation to offer yields that would interest dividend-growth investors. In many cases, even the most successful tech companies prefer to spend their cash on M&A or share buybacks rather than tie themselves down to the responsibilities and obligations of meaningful, regular dividends. That said, investors willing to take on a little risk and do a little digging can find at least a few ideas here that could help diversify their portfolios and strike a good balance between income and growth.

Source: Investopedia

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Companies are starting to part with some of their cash and deliver those sought-after dividends. So far this year, seven companies have initiated dividends and another 98 have increased theirs. In 2010, just 80 companies raised dividends in the entire first quarter. S&P estimates a first-quarter dividend payout of $56.6 billion, up 16% versus the year-ago period and forecasts a total dividend payout of $225 billion by year-end.

One time-tested dividend hunter is Thomas Cameron. He’s the 84-year-old senior portfolio manager of the Rising Dividend Growth Fund (ICRIX), which invests in firms that pass what Cameron calls the 10/10 Test: companies have to consistently pay dividends at an increasing rate that averages at least 10% per year for a minimum of 10 consecutive years. There are reasons to believe that this investment process works. Through March 9, the fund’s 5-year annualized return of 6.91% bests its benchmark, the S&P 500, by 4.02 percentage points, and leads its Morningstar rivals by 4.48 percentage points, landing in the top 3% of its category.

Source: Minyanville

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As an owner of Vanguard funds, I get a newsletter called In the Vanguard. An article that I received on Friday, March 4 caught my eye. It’s about retirement spending. I noticed two things: First, the article suggests that a safe initial withdrawal rate is 4.75%, which is significantly higher than the commonly seen 4%. But it is the second point that I think is far more important. “Now in retirement, you have to spend that money.” Once again, we have experts simply presuming, without discussion, that depleting your assets is how you will fund retirement.

Do you think that retirees might be interested in RIPS? I think interest would be huge. Why doesn’t Wall Street tout such a product? Perhaps because there is no money in it for them. Negligible fees, no loads, infrequent tiny commissions. But the product already exists without fanfare or a cool name. It’s called a dividend-growth stock. A portfolio of well-chosen dividend-growth stocks has all of the characteristics listed.

Source: Seeking Alpha

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247WallSt.com put together a list of REITs that are paying out huge dividends. Making the cut are Annaly Capital Management (NYSE:NLY), Anworth Mortgage Asset Corp. (NYSE:ANH), and Chimera Investment Corp. (NYSE:CIM) with a massive dividend yield of 15.8%. CIM shares trade for under $5 and are currently at $4.26.

Chimera Investment Corporation (NYSE: CIM) is closely tied to Annaly and originally had much of the same ownership. The two still share the same corporate address. Where Chimera is different is that it was originally meant to be more of a vulture fund that was reaching for yield and returns and employing some of the same criteria and discipline as Annaly.

Source: The Stock Masters

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Duke Energy Corporation (NYSE: DUK), Kinder Morgan Energy Partners LP (NYSE: KMP) and Southern Copper Corporation (NYSE: SCCO) are three top dividend stocks to watch in 2011 and beyond. Duke Energy Corporation (DUK, Free Analysis), an energy company that provides services through a number of business segments, offers investors exposure to a very safe and steady industry with a strong dividend to kick.

Kinder Morgan Energy Partners LP (KMP, Free Analysis), a pipeline transportation and energy storage company, pays a healthy dividend and is well-positioned to benefit from higher energy prices. Southern Copper Corporation (SCCO, Free Analysis), an integrated copper, molybdenum, zinc and silver producer, is a rare dividend-paying stock in the basic materials sector.

Source: SumFolio

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If you’re searching for a stock to make an investment in then you might like to wait till you’ve found an organization that you would like to partner with in the hunt for dividends. This suggests having a look at the company, its leadership, and its past finance performance before making a last call on who you would like to be your better half in playing the exchange.

A key item to concentrate on is the dividend yield. Stocks that provide dividends have an extensive record of out performing the remainder of the market. High yields mixed with a steady history of dividend expansion make a solid investing opportunity.

Source: Updated Dailey

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While bank stocks have seen flat performance so far this year, TheStreet's periodic analysis of the highest dividend payers in the sector shows that most of the highest yielding, actively traded names are down. In addition, the highest yielding name is under extra pressure, expecting a serious regulatory order to be handed down soon.

Looking at the 10 highest-yielding bank stocks with average daily trading volume of at least 50 thousand shares - using data supplied by SNL Financial - the bank stock with the highest dividend yield is Hudson City Bancorp (HCBK_), at 6.07% based on Friday's closing price of $9.88 and a quarterly payout of 15 cents a share.

Source: The Street

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Most investors are very familiar with dividends, but they may be less familiar with the specific timeline associated with a company's dividend distribution: the declaration date, the record date, the ex-dividend date, and the actual distribution date. Although buy-and-hold investors don't have to be keenly attuned to all of those dates, it's still important to have a working understanding of them. We've outlined some key dates below.

Declaration Date This date, also known as the announcement date, is the date on which a company declares it will pay a dividend. Ex-Dividend Date To further complicate matters, dividend-paying stocks also have what are called ex-dividend dates--usually two business days before the record date. If you buy or sell shares of stock between the ex-dividend date and the record date, the stock is said to trade without its dividend during that period. Payment Date The payment date is straightforward: It's the date that dividend checks are mailed or deposited in shareholders' accounts.

Source: Morningstar

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Yes, dividend investing is popular. Congress has extended legislation that maintains the low tax rate on corporate payouts through 2012. A great place to look for dividend stalwarts is among those companies that have successfully paid out cash for decades.

The authoritative list of Dividend Champions is compiled by the DRiP Investing Resource Center annually and features those companies that have increased dividends for more than 25 years straight. The latest list details about 100 companies that have met the center's criteria, and these companies need not be part of the S&P 500 in order to qualify, unlike the Dividend Aristocrats index.

Source: Motley Fool

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Dividend-paying stocks make up the core of many income-focused investors' stock portfolios. Typically, companies that pay dividends do so to inspire confidence in investors and demonstrate that they have a sustainable business with strong cash flows. What better way to woo investors than by cutting them a periodic check for investing in the stock of their company? For investors, dividends help cushion the blow of steep market downturns, and add to their total return during good times. Today, dividend yields of U.S. stocks are low compared with historical standards, but experts say there are reasons to be optimistic.

"Bottom line: Dividends are doing great," says Howard Silverblatt, senior index analyst at Standard & Poor's. But his enthusiasm comes with a caveat: "as long as you don't go back too far," he says. So far this year through the end of February, 84 companies in the S&P 500 stock index have increased their dividends, and none have decreased them, according to S&P. Wal-Mart made headlines last week when it announced a 21 percent dividend increase, and seven companies, including Kohl's and WellPoint, have initiated dividend payments—meaning they're offering them for the first time or reinstating them. Compare that with 13 new dividend payers during all of 2010. The bad news: At this rate, it will be 2013 before dividend payments reach 2008 levels, says Silverblatt. (Total payouts are still down 18.5 percent from 2008.)

Source: U.S. News 7 World Report

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Prior to 2003, the number of companies paying dividends to their shareholders had been on the decline for a quarter of a century, according to the American Shareholders Association. That trend reversed dramatically with the passage of the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA) on May 23, 2003. Among a host of other tax law changes designed to jump-start the economy, this piece of legislation temporarily reduced the top individual income tax rate on corporate dividends to 15%. It also reduced the top individual income tax rate on long-term capital gains to 15%. However, the JGTRRA is a sunset provision, and it is currently scheduled to expire on January 1, 2011. Here we look at the implications of this legislation, the history that led up to it, and the effect this change in tax law had on investors and corporations.

The passage of the JGTRRA led to immediate - and ongoing - changes. By year-end 2003, more than 242 companies had increased the amount of their dividend payments. Payments increased again in 2004 and 2005, 2006 and 2007, according to data provided by Standard & Poor's, until the party finally ended in 2008 and 2009 as a result of the mortgage meltdown and credit crisis.

Source: Investopedia

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The Land Down Under or the Great White North? Many investors are starting to ask that question as natural resource prices wend their way higher here in early 2011 and more want to get on board the bull market. Both countries have plenty of buried treasure as well as agricultural bounty. And as former pieces of the British Empire, both have long established histories of fostering both domestic and foreign private investment, with rule of law, developed financial and physical infrastructure, relatively light regulation and few if any capital controls.

Many factors affect exchange rates. But both the Australian dollar and the Canadian dollar--nicknamed the “loonie” in honor of the ubiquitous bird--show a close relationship with the price of oil. When black gold’s price rises, so does their value in US dollars. That adds up to a powerful windfall for US investors. Not only does a rising Aussie dollar or Loony push the US dollar value of the stock or bond in question. It also lifts the US dollar value of dividends, in effect conferring a dividend increase. And both countries are certainly famous for dishing out cash to shareholders

Source: Investing Daily

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Dividend investing is popular again. Investors have taken to heart Jeremy Siegel's studies, which show that higher-yielding stocks tend to offer greater returns over time than low- or no-yield stocks. One particular area has garnered interest over the years are Master Limited Partnerships. Investors are drawn to MLPs for their high yields and tax deferment. MLPs don't pay taxes at the corporate level, so the tax burden then gets passed to the investor. Without getting into too much detail, because of structure of the partnerships and the distributions, investors are entitled to a serious tax deferral. Investors should fully understand what they are in for before buying MLPs, but for those willing to do the research it can be very profitable.

The highest yields can be very tantalizing. As long as a stock yielding 15% doesn't lose value, you'll make 15% in one year! In more cases than not, however, an astronomical yield is a bad sign for a stock. Since yields and stock prices move in opposite directions, a high yield usually means that investors have begun to worry about the business and driven down its stock price. However, certain types of companies such as MLPs have to pay out most of their cash flow as distributions, so their yields will be higher than "normal." Dividends are not guaranteed; you need to make sure that a business is generating enough cash to pay its dividend, or your investment could be disastrous.

Source: Motley Fool

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“After radically scaling lending during the financial crisis,” the Times tells us, “banks and the lending arms of the automakers have started to issue loans more aggressively.” In other words, the banks (and the automakers’ lending affiliates, like GMAC) have learned absolutely nothing from the worst financial crisis since the 1930s. Or, more precisely, they have learned the most deplorable lesson of all: They can lend recklessly, and the taxpayer will bail them out.

Fortunately, I think we’ve got another six months (perhaps a little longer) before we have to take large-scale defensive measures against the next bear market. However, it’s not too early to begin transitioning your portfolio toward a more conservative posture. On the stock side, I advise you to focus sharply on the small, select group of stocks (and sectors) that still offer solid value in this increasingly overvalued and speculative market. I continue to be excited about the water utilities offering nice dividend yields.


Source: InvestorPlace

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When a corporation turns a profit, it has two choices: It can keep the profits and reinvest them in the company, where they become retained earnings, or it can distribute them to the shareholders. That distribution is a dividend. Dividends can take several forms. A company can issue a stock dividend in which additional shares are distributed to existing shareholders, or it can issue a dividend of property. The most common dividend, however, and the one that tends to adhere to a regular payment schedule, is simply a cash payment distributed on a per share basis. In the world of dividends, not all shares are created equal.

Common stock, the kind issued by every corporation, may or may not have a qualified dividend. If it does, the Board of Directors will declare the dividend amount at the company’s annual meeting. The company then pays on an announced schedule, whether annually, quarterly or monthly. Like the share price itself, the dividend can change with the company’s fortunes. If times are especially bad, the dividend can be suspended. Preferred shares are different. When issued, those shares come with the company’s promise to pay dividends at a set rate, the coupon rate, while the shares are outstanding. The coupon rate is set when the shares are issued, so that initial investors can anticipate a certain dividend yield going forward. Like common stock, however, preferreds are traded on the open market where share prices rise and fall. Since later buyers pay a different price for their shares, their dividend yield will differ from the initial coupon rate for better or worse.

Source: Wall Street Pit

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CEO Warren Buffett was tap dancing with gusto Saturday as he reported estimate-busting earnings for Berkshire Hathaway (BRK/A). The results were far above Wall Street estimates and 43% higher than last year. Importantly book value (net assets per share divided by total shares) exceeded $95,000 for the Class A shares.

As many of you know, BRK is the only non-dividend paying stock we own in our models (it's in our Capital Builder Model). We have made this dispensation for Mr. Buffett because in studying him over the years we learned of Benjamin Graham, and in getting to know Mr. Graham's theories, we came to know about the dividend meister John Burr Williams. We have been convinced for years that Mr. Buffett is really a follower of Williams as much as Graham because of the types of companies he has acquired over the last 30 years.

Source: Rising Dividend Investing

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Evidence is mounting that the auto industry is springing back to life. The auto industry worldwide is on the mend, and that signals opportunity for investors to become reacquainted not only with the big vehicle makers, but some of the smaller parts suppliers. The days of the General Motors ( GM ) and Ford ( F ) profit machines cranking out generous earnings and dividends may be over. But that doesn't mean that there aren't solid dividend paying stocks in the auto sector.

I recently explored an index that tracks the parts suppliers, the Dow Jones U.S. Auto Parts Index. As you can see below this group of stocks has been on quite a tear since September. Gentex and Autoliv have rapidly bounced back from the recession, and are sharing their good fortunes through their dividends. That's not true at other suppliers: For instance, Visteon ( VC ), Dana Holding ( DAN ) and TRW Automotive (TRW) don't pay dividends. Lear (LEA) just reported it will pay a small dividend of around $0.13, after a 2-for-1 split becomes effective.

Source: NASDAQ

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As you know, Suze Orman has become an increasing louder proponent of dividend investing, which she feels (like us) is a great way to make up for the income that has been lost to low interest yields in savings accounts and CDs. . I can’t wait to see what she mentions about dividend investing in her new book “The Money Class” coming out in early March.

Most personal finance-focused gurus love to just dumb down investing concepts to index funds and the usual rebalancing mumbo-jumbo talk, but never get beyond those generic instructions. Our readers know that it doesn’t take much more effort to build a better option when it comes to finding quality dividend stocks that will be big drivers to building long-term wealth as compound interest becomes the biggest driver pushing up your long-term returns.

Source: Dividend.com

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Dividend payers deserve a berth in any long-term stock portfolio. But seemingly attractive dividend yields are not always as fetching as they may appear. Let's see which companies in the water utility industry offer the most promising dividends. If you focus on dividend yield alone, you might end up with Middlesex Water and Artesian Resources, but they're not necessarily your best bets. Their dividend growth rates aren't stellar, particularly Middlesex's.

Instead, let's focus on the dividend growth rate first, where Veolia Environnement leads the way. Alas, its growth rate is so steep that it may be hard to maintain for long, especially given its high payout ratio.As I see it, Aqua America offers a compelling combination, sporting a yield close to 3%, a respectable dividend growth rate, and a reasonable payout ratio. It offers some income now and a good chance of dividend growth in the future. American Water Works and SJW also look attractive, with slightly higher dividends and lower payout ratios, despite having slower dividend growth.

Source: Motley Fool

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