Thanks to the Fed's massive expansionary policy, government bonds yield almost nothing, if not negative. Given the low yield of bonds, high yield utility stocks offer safe and higher returns. The utility companies produce and distribute essential services such as electricity, gas, as well as water services. There are integrated companies as well. Most utility companies pay outstanding dividends. Here is a list of 13 high-yield utility large-caps, paying excellent dividends over 4%.
Note that while utilities offer high yields which will surely beat the government bonds, the utility sector has its own risks. Nuclear power and energy generation are particularly important subjects for both political and environmental authorities. The trend for liberalization and increased competition is still going on. No company can keep its monopoly status forever.
Source: Seeking Alpha
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Some of these stocks pay extremely high dividends. Now any amateur investor would choose stocks with the highest possible yield without taking into consideration the consistency and the growth stability of those dividends, not to mention analyzing the industry that the stock is in.
Resource Capital Corp. (NYSE:RSO) is a specialty finance company that primarily focuses on commercial real estate and real estate investment trusts. Hatteras Financial Corp. (NYSE:HTS) is a $1.62 billion company that invests primarily in a single-family residential mortgages. Chimera Investment (NYSE:CIM) has a whopping 14.21% dividend yield and a modestly declining year to date performance of 4%.
Source: Small Cap Network
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To review: dividend payout ratio = dividends per share / earnings per share. When dividends per share are greater than earnings per share, the payout ratio is greater than 100%. When this happens, it suggests that these companies are not earning a sufficient amount to finance future dividend payments. And, of course, if the company’s intent is to pay out dividends in excess of earnings by raiding retained capital, shareholders’ equity stake in the company will be diluted. Diluting shareholders’ equity in a company in order to pay them more dividends sounds rather like cutting off one’s nose to spite
The following 16 companies have dividend payout ratios in excess of 100%. In short, these companies’ stocks look ripe for a fall and their dividend payments are unsustainable. What do you think the market knows about these companies that have kept their share prices propped up thus far?
Source: Wall St Cheat Sheet
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The fall of securitized mortgages caused a major financial crisis just a few years ago. After their ballistic rise, fueled by the low rate environment that followed the bursting of the Internet bubble and lax mortgage practices by a historically strict group, their consequential collapse brought down almost everything else.
some of these REITs achieve their lofty yield through the implementation of significant leverage. This leverage makes them more sensitive to changes in the market, positive or negative, especially where not hedged. In closing, should you be interested in investing broadly in this sector, iShares has created an Exchange Traded Fund that tracks the performance of the index of residential and commercial mortgage real estate, mortgage finance and savings associations sectors.
Source: Seeking Alpha
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This is an update to the first Periodic Table of Dividend Champions, published last December. For our periodic stock table, the two key characteristics that determine the presentation are yield and dividend growth rate (DGR). Once again, I give my thanks to David Fish for his blessing in allowing me to stand on his shoulders and present various snapshots of his terrific Dividend Champions work. This presentation is based on David’s document dated March 31, 2011. For the uninitiated, Dividend Champions are stocks that have increased their dividend payout for 25 consecutive years or more. At the moment there are 100 such stocks.
I am making what I believe is an improvement in the presentation of this table. Last time, I used the five-year dividend growth rate (DGR) as the determinative growth rate for location in the table. This time, in the interest of being conservative, I am stealing an idea from Dividends4Life and displaying the lowest of the 1-, 3-, 5-, and 10-year DGRs.
Source: Seeking Alpha
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There are plenty of benefits to owning stocks that pay their dividends monthly. According to the Excel list that was just updated by WallStreetNewsNetwork.com, there are over 200 different companies that pay dividends monthly, many of which have high yields. Technically, these stocks are real estate investment trusts, oil income trusts, closed end bond funds, and closed end income stock funds, which pay dividends every month. Advantages to receiving monthly dividends as opposed to quarterly or annual dividend stocks are that the invested capital is returned faster, compounding takes place quicker, and there is usually less price volatility of the investment. Also, many of monthly dividend investments pay dividends that are tax free.
Use caution choosing these investments. Avoid the ones with high management fees, watch out for the ones with limited liquidity and which trade very few shares on a daily basis, and if you invest in the municipal bond closed end funds, make sure you know the consequences of the Alternative Minimum Tax. You also want to find the ones that trade at a discount to net asset value, and avoid the ones using excessive leverage.
Source: FavStocks
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The Graham Number was considered to be the maximum price an investor should pay for a stock, according to the formula developed by Benjamin Graham.
It is calculated as follows: Graham Number = Square Root of (22.5) x (Earnings per Share) x (Book Value per Share).
This equation is predicated on Graham’s belief that the price-to-earnings (P/EPS) ratio should be no more than 15, and the price-to-book value (P/BVPS) ratio should be no more than 1.5. Therefore we only include companies that meet both of these criteria. As a result, the product of the two should not be more than 22.5. In other words, (P/EPS of 15) x (P/BVPS of 1.5) = 22.5.
Source: Seeking Alpha
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Dividend-paying stocks offer a powerful combination of current income and growth potential that many investors find extremely attractive right now. But as you look for stocks that pay the top dividends, you have to stay aware of one pitfall that can easily put your entire life savings at risk if you're not careful. Often, investors who gravitate to dividend stocks are on the more conservative side of the investing spectrum. Unlike bold growth investors who prefer companies that reinvest every spare penny back into their businesses to grow as quickly as possible, dividend-seeking investors look at the tangible return of cash to shareholders on a regular basis as a safety net against rash corporate action or even outright fraud. In that sense, some associate dividend stocks with safety.
As you look for the best dividend-paying stocks, it's important to keep your overall portfolio diversified. By being aware of the dangers of concentrated risk that the most popular and highest-yielding dividend stocks pose to your investments, you'll be able to mix and match from a wide array of different industries and sectors to keep your portfolio as safe as you can.
Source: Motley Fool
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In my Special Situations portfolio, I look for catalysts that can drive a stock's price. One more predictable type of situations relates to dividends, as I outline in "5 Surprising and Special Dividend Stocks." So I'm back with another company whose fat yield looks like it might drive the stock price higher.
That business is CVR Partners (NYSE: UAN ) , a limited partnership that held its IPO less than two weeks ago. The limited partnership was created by parent CVR Energy, which still retains more than a 70% interest in this $540 million company. CVR Partners owns and operates a nitrogen fertilizer business based in Coffeyville, Kansas.
Source: Motley Fool
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The telecommunications industry is currently brimming with opportunities to earn a lofty dividend up front, with ample scope for capital gains down the road. Here in the United States, mergers have dramatically altered the telecom landscape over the past decade. While there are still something like 1,300 independent telephone companies across America, two giants, AT&T (NYSE: T) and Verizon Communications (NYSE: VZ), easily control more of the market than everyone else combined.
Beyond our borders, selected foreign telephone companies offer generous yields with greater growth potential. And these well-managed companies should only increase their dividends if the U.S. dollar keeps going down. Buy #1 Telenor (OTC: TELNY), Buy #2 Cellcom Israel (CEL) and Buy #3 Telkom Indonesia (TLK).
Source: InvestorPlace
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I consider myself a fairly frugal person. I like cutting recurring expenses, which is why I drive a ten year old car and only have a discounted cell phone with the lowest plan possible. Saving money and investing in quality dividend stocks is just one of the strategies I utilize to increase my dividend income. Cutting expenses however can only go so far however. That’s why generating extra income is so important to me. Besides the dividend income from my portfolio, I often look for brokerage deals in order to find brokerage bonuses or free trades. I also like teaching young people how to save and invest for their future.
Albert Einstein had once said that compounding of interest was one of the biggest wonders in the world. With dividend reinvestment, investors could take advantage of this compounding for wealth accumulation. In addition to that, by selecting companies whose stocks regularly raise dividends, investors could essentially turbocharge their returns in the long run. For my 40+ positions I typically collect the dividend income until it reaches a certain threshold, and then I reinvest it selectively in the most attractive dividend stocks at the time of purchase.
Source: InvestorPlace
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The power of dividend investing is pretty well-known these days. Higher-yielding stocks tend to offer higher returns over time than low- or no-yield stocks, according to research from Jeremy Siegel and others. In fact, the 20 best-performing survivor stocks from the original S&P 500 in 1957 are all dividend payers.
As the recent economic crisis illustrated all too well, however, you can't buy just any high-yielding stock. Dividends that get cut or suspended entirely can wreak havoc on a stock price -- and thus, your portfolio. And since today we're dealing with relatively low-yielding/high-volatility tech stocks, we have to be on our toes.
Source: Motley Fool
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Adding international exposure to investment portfolios has also been proven very beneficial. Various ways of doing that, as well as adding passive income, have been published in different weekly and monthly issued magazines. Adding US listed stocks that pay foreign dividends has been an interesting idea to increase one’s passive income. The reasons for this could be:
1. $USD is not doomed or the value is not being decreased, thus having a cash flow in another currency might help increase your yield over time if the dollar continues to have a difficult time 2. all tax implications of owning foreign stocks that might require withholding taxes etc can be avoided if one buys US listed stocks as to increase his Passive Income.
Source: TRCB News
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To do well in the market, you should know the stocks you track inside and out. After all, every journey begins with a single step, so let us start by considering some interesting companies, which will give you a starting point for possible stocks that you might buy for your retirement accounts. For selection as a long-term hold in my own retirement accounts, a stock should exhibit the following characteristics:
- A dividend yield higher than I can earn in a bank account?
- Rising dividend history?
- Rising revenue year-over-year?
- Rising earnings year-over-year?
- Rising EBITDA year-over-year?
- Option trading available for the lowest risk entry possible?
Source: Seeking Alpha
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How should an investor determine what stocks to buy, and when to buy them? Will Rogers summed it up: "Only buy stocks that go up. If they aren't going to go up, don't buy them." Many have misread this tongue-in-cheek observation and joined the "buy anything that is rising" club. I've found that the "buy investment grade value stocks lower" approach works better.
Here are five filters you can use to come up with a selection universe of high quality companies, and you can obtain all of the data inexpensively: 1.) An S & P rating of B+ or better. 2.) A history of profitability. 3.) A history of regular dividend payments. 4.) A reasonable price range. 5.) A NYSE Listed Security.
Source: American Chronicle
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Dividend-paying companies are an oasis in the desert of underperforming stocks. They offer solid payouts today and the promise of capital gains tomorrow. According to a study by Ibbotson, reinvested dividends made up about 40% of total stock returns from 1926 to 2006. In fact, dividend investing is so appealing that superinvestor Warren Buffett has made it a significant component of his portfolio.
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."
Source: Motley Fool
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Since the goal is reliable dividend growth, I want to select companies that grow their dividends reliably. Of course, no one can predict the future. Any company can cut, freeze, or eliminate its dividend at any time. But the past holds clues to the future. Clearly, a company that has already compiled a streak of consecutive annual dividend increases is displaying evidence that it might continue to do so. The 5-year rule is certainly not the only evidence one might seek, but it is an important part.
I use the 5-year rule as a hurdle requirement: If a company does not have at least a 5-year streak of raising its dividends, it is ineligible for consideration as a true dividend-growth stock. At the moment, there are some really interesting examples of how this rule can steer investment money toward or away from certain stocks.
Source: Seeking Alpha
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But as scary as stocks may look, keeping huge portions of your money in cash earning next to nothing isn't a good long-term answer. If you have a definitive plan on what to do with that money -- waiting for pricey stocks to come down to more reasonable valuations, for example -- then that's fine. But I suspect that most young investors are keeping cash levels high just because they don't know what else to do. For that fear, I have two simple solutions. One is to dollar-cost average into the market with broad market ETFs. Another solution is to focus on conservative, low-volatility stocks.
For most young people, investing success doesn't come naturally. You have to work and get familiar with investments before you can expect to master them. But with some courage, you can get out of the cash trap that many young investors have fallen into and instead make sure your money is working hard enough for you to give you the prospects for the more prosperous future that you deserve.
Source: Motley Fool
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If you're a little hesitant to invest more money in stocks right now, that's understandable. The uncertain state of the U.S. economy, the nation's 14.7 million job shortage, and renewed concerns about Europe's government debt are putting some big question marks next to the U.S. and European recoveries.
But for those looking to cautiously commit new money to equities, consider stocks that offer a bit more safety because they pay decent dividends. Dividends decrease, but do not eliminate, risk. Keep in mind that all of the above stocks contain moderate risk and are not suitable for low-risk investors. Safest Pick: BP Prudhoe Bay Royalty Trust (BPT). Best Pick: (higher risk) TransCanada Corp. (TRP).
Source: Daily Finance
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Dividend-paying stocks are often seen as being higher-quality and more stable than their non-dividend-paying counterparts. For income-orientated investors, they are viewed as the next step up on the risk/return spectrum between lower-risk bonds and higher-risk growth stocks. But there is a point at which dividend-paying stocks actually become riskier than the average stock. Just after last year's Gulf oil spill, shares of BP (BP) offered a trailing-12-month dividend yield of 9%.
This would have been a great deal if it was sustainable, after all ExxonMobil's (XOM) yield is less than 3%. But the market was correctly forecasting that BP's dividend would be cut. Another example is New Century Financial, a subprime mortgage REIT that offered a dividend yield of around 18% at the peak of the housing bubble. That high dividend was nothing more than a trap, as the firm filed for bankruptcy when the housing bubble burst.
Source: Morningstar
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"What the wise man does in the beginning, the fool does in the end."
--Warren Buffett
With eye-bulgingly huge yields, the mortgage REIT sector has become a true market darling. Yields such as Annaly Capital's (NYSE: NLY ) 14.4% or American Capital Agency's (Nasdaq: AGNC ) 20.1% have become too tempting for yield-starved investors in a near-zero interest rate world. And financial backers sponsoring IPOs have been rushing to market to take advantage of the opportunity.
According to The Wall Street Journal, seven of the nine real estate investment trusts that have filed for IPOs so far this year will invest in mortgage-backed securities. Those nine deals are looking to raise $2.6 billion in capital, the largest amount for mortgage REITs since 2009. Among the largest REIT IPOs are Pimco REIT, which is looking for $600 million, and American Capital Mortgage Investment, which seeks $500 million. These mortgage REITs cater specifically to retail investors.
Source: Motley Fool
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Fed refugees, or savers seeking to escape punishingly low interest rates by buying shares, had better choose carefully. Since December 2008, America's Federal Reserve has kept core short-term interest rates near zero while spending richly on bonds to depress longer-term rates, too. Put euphemistically, the goal is to stimulate growth. Put cynically, it's to lavish profits on banks to prevent more of them from failing; to lure businesses and consumers into buying on credit, especially real estate; and to chase savers out of their checking accounts and certificates of deposit into the stock market, thereby creating a rally, the glow of which will brighten the mood of shoppers.
The plan has worked too well. U.S. share prices have doubled since March 2009. Dividend yields have plunged. Commodities have soared, too. All manner of risky securities have found eager buyers of late--even dodgy mortgages. That means investors who are just now spending bank savings to buy into the market rally risk buying high. The safeguard against that is to pick through the stock market's bargain bins for merchandise that's likely worth more than its price. There are still good names to be had on the cheap.
Source: SmartMoney
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Wharton professor Jeremy Siegel came up with the term "corporate El Dorado" while studying the common characteristics of the greatest stocks in S&P 500 history. He found that 97% of the total after-inflation accumulation from stocks came from reinvesting dividends. Dividend-paying stocks act, in Siegel's words, as "bear-market protectors" and "return accelerators." When dividends get reinvested, they purchase more and more shares at lower prices during a bear market. These extra shares act as a bear-market protector. Then, when share prices reverse, the extra shares act as a return accelerator and rocket total returns higher.
Siegel also found some other common characteristics of Altria and these 20 corporate El Dorados. The most important is the ability to deliver greater-than-expected earnings growth on a consistent basis. Carrying an average price-to-earnings ratio slightly above the market average, these companies weren't exactly cheap on a traditional basis. But throughout the years, they always seemed to deliver a bit more than the market expected.
Source: Motley Fool
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Dividends on stocks are a good way to increase one's financial liquidity. Though we cannot always predict how much amount we would be earning through stock dividends, they are certainly one of the reasons for entering the stock markets. Before we know of the best dividend paying stocks in 2011 and beyond, we need to understand the important points on which stock dividends depend. Here are these points explained one after the other.
Dividends are paid to shareholders of the company from the total profits generated during the year. So, naturally, the dividend given per share will be large if the profits are high. The board of directors finalizes the interim as well as final dividends for all the shareholders. As dividends are directly linked to the net profits, you should invest in firms having high net income. All companies cannot have high profitability as their business model might not be sustainable at all times of the economy. However, you need to select from sectors which are least affected by a slowdown, and have consistency in performance to gain handsome dividends.
Source: Buzzle
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Recent signals have indicated that the tech sector may be ready to surge higher, and investors could double their pleasure by racking up growth and yields in some of the sector’s finest dividend stocks. Since last September, tech giants such as Microsoft (MSFT), Intel (INTC), and Hewlett Packard (HPQ) have all increased their dividends. These cash-rich companies have responded to investor interest in dividends but still have significantly underperformed the market averages so far in 2011.
Though most of these dividend-paying tech stocks have not yet completed weekly bottom formations, there are valid fundamental reasons why the high-yielding tech stocks might be worth a look. When the inflation rate is rising, multinational, cash-rich, dividend-paying stocks should do well, benefited by a weaker dollar. With the latest producer and consumer price numbers out at the end of the week, these tech stocks may be just what your portfolio needs.
Source: Forbes
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There's a lot to like about utilities. For starters, utilities typically enjoy monopolies in their market area. They don't have to worry about losing customers to some new website or technological gadget. An economic slowdown might temporarily cut demand for electricity or natural gas. But, long-term, utilities typically grow revenues and earnings in the mid-single digit range annually. Utilities in faster growing regions do better, and those in regions with struggling economies do worse. While utility share prices might drop with the market during a downturn, they usually recover when the market revives.
All that said, for most investors, dividends are the main attraction for utilities. Dividends are regular cash payouts that you receive for simply owning a stock. While you're lucky to get 1 percent from a bank these days, many utilities are paying dividends equating to 4 percent or higher yields [your dividend yield is the dividends that you receive over the next 12-months divided by the price that you paid for the shares]. When the market dips, you'll still receive your dividends while you wait for the market to recover. That only works, of course, if your stock continues to pay its dividends as expected, and that's the advantage of owning utilities. Because they produce steady and predictable cash flows, dividend cuts are rare.
Source: Santa Cruz Sentinel
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Investors love to find catalysts for their stocks. Special situations such as spinoffs or restructurings can unlock hidden value and produce accelerated returns. It's an attractive way to play the market, and it's a method I follow in my Rising Stars Portfolio. But many investors overlook one of the best catalysts for stoking capital gains -- dividend increases -- since an increase signals management's confidence in the business prospects.
For dividend investors, special situations could involve companies that have just started a dividend. While many investors regard a dividend initiation as a tacit admission that the company cannot grow as fast as it once did and therefore exit the stock, a dividend also draws in a whole new investor base, too. Because income-focused indexes and other funds cannot buy a stock until it pays a dividend, there's pent-up demand for shares.
Source: Motley Fool
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Covanta Holding(CVA), PPL Corporation(PPL), Exelon(EXC) and DTE Energy(DTE)are a few utility stocks which are defensive bets and have high dividend yields ranging from 4.8%-8.7%. Some of these 10 stocks have underperformed the Dow Jones and the S&P 500 index that gained 6.3% and 4.9% during the past three months, respectively. This growth came despite inflationary concerns, unrest sweeping across the Middle East and the catastrophic events that rocked Japan recently. The U.S. markets seem to have shrugged off these happenings and continue to rise on the back of positive employment and capital spending data.
We have identified a few defensive stocks to combat a decline in the U.S. markets, if any. Dividend income investors demand a dividend yield of 2%-3%, similar to the dividend yield of S&P 500. These 10 stocks have dividend yield of 5%-9%, topping the index average. Also, the stocks considered here have an average upside potential of up to 17%, according to analysts' estimates.
Source: The Street
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Sometimes growth stocks and income-producing stocks are arrayed against each other as some sort of "bubblegum vs. potato chips" argument. In reality, though, investors can usually find a pretty healthy menu of choices among companies that not only return a meaningful dividend to shareholders, but also have growth prospects strong enough to drive future capital appreciation. Although an investor should always hold a diversified portfolio to minimize company-specific risks, a selection of these stocks could offer a bit of the best of both worlds.
Nothing succeeds quite like success, and all of the companies on this list have a long history of success in their chosen fields. They also offer investors a middle route alternative between capital gains investing and the hunt for dividends. While investors must of course do their own due diligence and buy these names only at compelling prices, the underlying businesses are such that long-term holders should expect a good mix of earnings and dividend growth.
Source: Investopedia
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Standard & Poor's, the world's leading index provider, announced today that dividend increases rose 27.8% during the first quarter of 2011 to 510 from the 399 recorded during the first quarter of 2010. Of the approximately 7,000 publicly owned companies that report dividend information to Standard & Poor's, only 30 decreased their dividend payment during the first quarter of 2011 versus the 48 that lowered their dividend payment during the first quarter of 2010.
"If dividends were a paycheck, dividend investors would have received a 6.7% raise in the first quarter," says Howard Silverblatt, Senior Index Analyst at S&P Indices. "Dividend increases were up 27.8% in the first quarter, with dividend decreases off 92% from the record setting first quarter of 2009. On a dollar basis, dividend investors lost $43.8 billion in the first quarter of 2009; for the first quarter of 2011 they added back $19 billion."
Source: PR Newswire
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Stock market investments have always been profitable, and are expected to give better returns with a revival in the global economy. However, investing in the right kind of stocks is imperative to gain the benefit of huge rallies in the stock market. Dividends are generally given by large sized companies whose profit figures are huge. Having said this, there are medium and small size companies which pay attractive dividends to award shareholders. The best large cap dividend stocks are mainly of those companies having very high profitability and high growth prospects in the future. Before we talk more about the large cap dividend paying stocks, let us know about the dividend paying policy of companies first.
Dividends are paid on a per share basis to shareholders of a company. These are paid from the profits generated in a year, and are an attempt made by the company to make the shareholders a part of the company's progress. Dividend decisions are taken by the board of directors and are revealed to the media and shareholders through press conferences. Annual general meetings (AGM's) are held where interim as well as final dividends are finalized. Though most good firms give dividends consistently, these pay-outs may change, depending on the situation of the economy as a whole and profits earned by the company in particular. Large cap high dividend stocks are extremely useful for investors to raise their wealth. Now, you must be thinking of how to find the best large cap dividend stocks to maximize your earnings.
Source: Buzzle
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Well-established, dividend-paying companies have traditionally been referred to as widow-and-orphan stocks, because they provided their stockholders with a reliable dividend stream that could be counted on as a steady income. But while they may be given such a label, the fact of the matter is that many types of investors can probably improve their portfolios by including companies that make consistent dividend payments to shareholders.
For starters, the obvious benefit of regular incoming cash received from dividend payouts should not be overlooked. Periodic dividend receipts not only provide stability to a portfolio's annual rate of return, but also provide emotional support and peace of mind for the individual investor. As the market turbulence of the past several years has illustrated, stocks can be prone to drastic short-term changes in value. When prices do happen to drop, dividend-paying stocks can often keep a portfolio on track - and keep an investor from succumbing to panic.
Source: Investopedia
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Trust. It's almost a quaint word when each day brings us more bad news about the folks running our companies. Another insider trading scandal. Another corporate expense account maxed out at a strip club. Another CEO getting paid eight figures to destroy ten figures of shareholder value. Perhaps this is why I've noticed a renewed interest in stocks that tangibly show their trustworthiness by regularly returning cold, hard cash to shareholders.
To beat the market, though, we have to get more granular. We can buy into the 42 Dividend Aristocrats to make a more dividend-rich portfolio, hone it down further to my list of 10, or pick and choose individual bets from among the 10. With each granular step, we lose some of the safety of diversification and gain the possible advantage of stock picking. Salt to taste. Personally, I anchor my stock portfolio with broad indexes like the S&P 500 and trusted mutual funds. Then I layer in individual stock picks I've spent the time to research.
Source: Motley Fool
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Never before has there been such strong interest in stocks that pay dividends. Rather than bullheadedly trying to stand in front of the freight train of investor demand for dividend payments, companies are jumping on the bandwagon -- and investors will be the winners.
In its quarterly look at dividend investing, Standard & Poor's found that dividends are on the rise in a major way. A whopping 117 companies -- nearly a quarter of the S&P 500 -- increased or started paying dividends. That's a 50% increase over the number of companies raising dividends during the first quarter of 2010. All told, dividend payments during the quarter rose by a record $16.6 billion.
Source: Motley Fool
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Dividend stocks are a great way to boost your long-term results. Investing in dividend-paying stocks also provides your portfolio with a nice safety net when the stock market gets volatile. As an investor, you must realize that not all dividend-yielding stocks are created equal. Your goal should be to look for companies who are consistently raising their dividend because of strong cash flows. Dividends which are high solely because the stock price has plummeted are a much more risky investment.
Investing in dividend-paying stocks should typically be a long-term commitment for investors. Trading in and out of this type of company is often not rewarding financially, and it will simply cause you to pay significant expenses in commissions and taxes. Find some solid dividend-yielding stocks and stick with them for the long-term. Here is a look at five of the top dividend-yielding stocks for the long run.
Source: Newsy Stocks
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If you're looking for stocks that will give you both a healthy stream of current income as well as the promise of potential growth for years to come, you'll find plenty of dividend-paying stocks that appear at first glance to fit the bill. But if you want the best dividend stocks you can find, you should also look for a key ingredient that only a select few stocks have
So how can you be sure you're getting the best dividend stocks for your money? Some investors go for the highest yields, but that can be dangerous. Often, stocks have high yields precisely because investors don't expect dividends to last. What I like to see from dividend stocks is a sizable insider ownership interest. To me, that shows that the people most involved in making the business succeed have the same desire I have as an investor: to see stable payouts and a steadily rising share price. So I looked for companies that have both high dividend yields of 2.5% or more as well as insider ownership of at least 10%.
Source: Motley Fool
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As retiring Baby Boomers look for ways to pay the cable bill and buy a few rounds of golf or new iPad, dividend stocks could help fill the void. According to fund research firm Lipper, more than $5 billion has gone into funds that invest in dividend or equity income since October. This is on the back of the more than $7.8 billion, equity income funds attracted in 2010. One of the biggest attractions to dividend paying companies is how they can withstand inflation. From 1975 through 1980, when inflation was as high as 14.4%, dividend stocks gained nearly 38%, trouncing inflation. Those companies with a history of raising payouts are especially warranted. Unlike a bond which pays a fixed rate, with stocks you could potentially get a higher dividend year after year.
With a variety of new risks affecting the bond market, investors are starting to rethink the asset class. Investors looking for good income from their portfolios are beginning to take a hard look at dividends once again. Equity income funds have surged in assets and may be one of the best ways to get inflation protected income from a portfolio. Funds like the SPDR S&P Dividend (NYSE:SDY) or individual stocks like Sysco (NYSE:SYY) make ideal positions.
Source: Investopedia
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It has certainly been a busy month as March flew by marked by tragedies in Japan and conflicts in the middle east. At times I used to try to pull off some great April fool pranks on here but in the light of everything happening right now, it seemed fit to start April by looking at the top dividend stocks around the world, seeing as these are all potential targets for your passive income portfolio in what could be the difference between an early & enjoyable retirement and a very late retirement where you depend on your former employer or the government to determine the level of your life. So today we resume our monthly tradition of looking at the top 100 dividend stocks in the broad based S&P500 index.
Over the past few months, we have looked at quite a few criteria that have helped us find the best dividend stocks including current yield, dividend growth and also companies that produce solid enough earnings to keep up the dividend payments. We summed it all up when we discussed the 20 things that we look for in dividend stocks.
Source: Seeking Alpha
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Dow stocks, which some investors argue offer the best risk-reward proposition of any asset class, have led equity markets this year. The following five Dow stocks, all of which pay dividends, derive the greatest share of revenue from the Asia-Pacific region, of the Dow 30. With China pacing the world as an economic thoroughbred, these companies are likely to continue to increase sales and profits at a faster pace than their multi-national peers. Below is a closer look at the fundamentals of these Asia-focused firms.
5. DuPont(DD) is a diversified chemicals company, selling performance coatings, polymers and specialty chemicals. Its stock has advanced 47% in the past 12 months, outperforming the Dow. During fiscal 2010, DuPont derived 22% of its sales from the Asia Pacific region. It generated 36% of sales in the U.S., 25% in Europe and 15% in Canada and Latin America. DuPont's sales have grown 18% in the past year as net income and earnings per share
Source: The Street
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On an after-tax basis, Canadian dividends are generally worth 1.31 to 1.45 times more than the earnings on interest income. Case in point: an Ontario investor in the highest tax bracket would have to purchase a bond yielding 5.36% in order to achieve the same after-tax income generated from a stock with a 4.0% dividend yield.
Dividend investing has a number of benefits beyond tax efficiency. They may not be glamorous but dividends play an important role in the total return of a portfolio. Over the past 40 years, 58% of the returns earned in the MSCI World Index were attributable solely to dividends. Companies paying dividends tend to be more defensive in nature and much less sensitive to interest rate fluctuations, historically generating superior total returns on a lower risk basis compared to the overall market.
Source: BC Local News
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Dividend stocks are always great to have in your portfolio since they are working to produce income for you. But, the dividend alone is not going to make the investment positive, investors still need quality stocks that can appreciate. Today we would like to highlight a few stocks that are attractive and pay out a decent dividend: Lorillard Inc. (NYSE:LO), Medtronic, Inc. (NYSE:MDT) and Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE:TSM)
Medtronic, Inc. (NYSE:MDT) is the healthcare supply giant that boasts a 2.29% dividend yield which is not all that outstanding, but don’t let it fool you, Medtronic is still a strong investment player. Similar to LO, MDT has had earnings growth in the past year that has accelerated moderately compared to earnings growth in the past three years. The stock shows some value as it PE multiple is lower than average for other stocks in the NYSE and NASDAQ. The stock is also showing a good uptrend with relative price strength increasing.
Source: Wall St Nation
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It seemed fit to start April by looking at the top dividend stocks around the world, seeing as these are all potential targets for your passive income portfolio in what could be the difference between an early & enjoyable retirement and a very late retirement where you depend on your former employer or the government to determine the level of your life. So today we resume our monthly tradition of looking at the top 100 dividend stocks in the broad based S&P500 index.
Over the past few months, we have looked at quite a few criteria that have helped us find the best dividend stocks including current yield, dividend growth and also companies that produce solid enough earnings to keep up the dividend payments. We summed it all up when we discussed the 20 things that we look for in dividend stocks. FTR remains once more at the top of our list although it was a tough month for the stock as you can see in the chart below. That means the dividend yield is even higher this time around than last month but when you look at the payout ratio, it continues to look very unlikely that FTR will be able to keep up these high payments.
Source: FavStocks
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It may seem odd that an industry known most for its cyclicality, high capital needs and threat of obsolescence, but many of the better dividend-growth ideas in technology are found among the semiconductor companies.
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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If you're looking to boost the income in your portfolio, exchange-traded funds can help you get the job done. But while plenty of ETFs pay decent yields, one ETF offers truly amazing payouts to its shareholders. Below, I'll tell you the secret behind this top-yielding ETF and share some insight into how its strategy can help you with your own investing. Not so long ago, if you wanted to get income from your portfolio, you first turned to bonds and other fixed-income investments. Most bonds don't offer great prospects for capital appreciation, but much of the time, the income they generate compensates for their lack of growth potential. As a result, bonds have been favored by conservative investors who are more concerned with personal cash flow than with growing their portfolios.
But over the years, interest rates on bonds and similar investments have fallen dramatically. Go to a bank for a CD or buy a Treasury bond, and you'll be lucky to get enough of a yield to match inflation going forward. That has made them much less useful as income-producing investments. As a result, investors have increasingly turned to stocks and stock funds. In many cases, you can get better yields from dividend-paying stocks than you'll find on bonds -- along with the potential for future growth if stock prices continue to rise. With the rise of various types of ETFs, it was inevitable that fund companies would create dividend-stock ETFs. In fact, investors now have a wide range of dividend ETFs to choose from, using different strategies that emphasize different characteristics.
Source: Motley Fool
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"Our goal is helping investors grow their capital and income base from which to derive cash for their current and future needs," notes dividend expert Kelley Wright. The editor of Investment Quality Trends explains, "To that end we believe that high-quality stocks purchased at historically low-price-to-high-yield offers the best potential for downside protection and upside appreciation. Our Timely Ten list represents our current top ideas.
"The Timely Ten, therefore, is not just another "best of, right now" list. It is our reasoned expectation based on our methodology and experience for what we believe will perform best over the next five years. "Do we believe that all 10 will go up simultaneously or immediately? Of course not. "Our four-plus decades of research and experience, however, leads us to believe that these stocks, purchased at current Undervalued levels, are well positioned for both growth of capital and income.
Source: BloggingStocks
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Stock dividend advice is a crucial part of any investing portfolio. And high yield dividend stocks are especially important in times of trouble. As in, right now. There’s a lot of uncertainty whether the market’s 25% run since July is flagging or if the bulls are picking up momentum once more.
But as volume remains fairly weak on Wall Street amid continued geopolitical unrest, government debt fears at home and abroad and overall economic uncertainty, it’s hard even for the most sophisticated trader to tell how things will shake out. So what’s a regular investor to do? Well, if your investment goal is simply to steadily grow (and protect) your retirement savings, now is the time to take a serious look at dividend stocks.
Source: InvestorPlace
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Most investors don't keep tabs on their companies' fundamental values. That's a mistake. If you take the time to read past the headlines and crack a filing now and then, you're in a much better position to spot potential trouble early. Better yet, you'll improve your odds of finding the underappreciated home run stocks that provide the market's best returns. Here are three dividend stocks for your watchlist:
1. Frontier Communications (NYSE: FTR), 2. RAIT Financial Trust (NYSE: RAS) and 3. Suburban Propane Partners (NYSE: SPH).
Source: Motley Fool
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Five weeks ago, I invested my cold hard cash into 10 high-yield dividend stocks I believe will beat the market. Over the past two weeks, the S&P 500 rose a slight 0.35%. Our portfolio maintained its outperformance of the market, extending its lead to 1.56 percentage points! While outperformance is always good, it should be taken with a grain of salt. We're investing for the long term, and it's only been five weeks. But I firmly believe the results will bear us out.
Of our stocks, the biggest mover in the portfolio the past two weeks was Bristol-Myers Squibb, which rose 3.33%. The stock jumped on Friday when, as Fool pharma analyst Brian Orelli expected, the FDA approved the firm's melanoma drug Yervoy . The drug is a breakthrough in that it is the first time a drug has significantly extended survival for melanoma patients.
Source: Motley Fool
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Believe it or not, even in today's market, you can find stocks that have a few interesting valuation characteristics. In this case, we look for stocks trading for single-digit P/E ratios, and dividend yields above the comparable 10-year U.S. Treasury rate, currently about 3.4%. Not expecting to find much, the search actually turned up an interesting group of names.
Not surprisingly, many of the names that turned up were smaller capitalization stocks that aren't readily available to many of the larger institutional investment funds. That's because most institutions would likely gobble up any decent business trading for a P/E of 9 and yielding over 5%. But they can't do that with Homeowners Choice (Nasdaq:HCII), a Florida home insurance company that also yields 5%. With a market cap of $50 million, most mutual funds leave this one for the little guy.
Source: Investopedia
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With all the headlines bonds have been making lately—and most aren't good—it's hardly surprising that many pros have been moving away from this nearly $36 trillion business. But that doesn't mean they haven't found a doppelganger of this once-steady form of income. After all, millions of Americans at or near retirement need enough steady income every few months to pay for the basics, finance vacations or even buy a few rounds of golf. The answer: stocks that act like bonds, only better.
Indeed, dividend-paying stocks are fast becoming the "bonds" of the future, with more than $5 billion having gone into funds that invest in them since October, according to fund research firm Lipper. And it's not just the same old names, like IBM and Johnson & Johnson, crowding the portfolio lineups; pros say there are also some great finds among smaller and more obscure firms. Many of these smaller fries are generating plenty of cash and have long records of paying or boosting their dividends, with yields that stack up well against most government bonds. But perhaps the biggest draw is how dividend-paying firms, especially those with a history of raising payouts, can withstand inflation, which can diminish a bond's value fast. "With a bond, once you buy it, you are locked in at that rate. But with a stock, you could get a higher dividend," says Bernie Williams, a vice president at money-management firm USAA.
Source: Wall Street Journal
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