If you want to earn safe, high yields, then you want to start assembling a portfolio of “cash cow” businesses. As long-time readers know, cash cows represent mature operations. Because these firms have few growth prospects, owners don’t need to invest in a lot of new properties, plants, or equipment. As a result, you can milk these firms for ongoing dividends. Think of industries like cigarettes, breakfast cereals, or vending machines. These firms won’t get a lot of coverage in the media, but shareholders often earn yields as high as 12%, 15%, and even 21%.
I have long ranked Buckeye Partners, L.P. (NYSE:BPL) as one of my favorite cash cow businesses. The partnership owns over 6,000 miles of energy pipelines, in addition to dozens of terminals, storage plants, and processing facilities. For investors looking for higher dividend yields, this name deserves a further look. Buckeye gushes cash flow, to begin with. Pipelines earn a small fee on each barrel of crude oil that flows through. And while commodity prices can swing from year to year, the total volume of oil produced each year stays fairly consistent.
Source: Income Investors
Related Articles:
- 5 Dividend Stocks With A Low P/B Ratio
- 5 Dividend Stocks To Beat The Wall Street Giants
- A Disciplined Approach To Dividend Growth Stocks
- 3 Low Beta, Higher Yielding Dividend Stocks For The Next Downturn
- 6 High-Yield REITs With Growing Dividends
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Showing resilience during a tough week was a group of stocks that has not been heard from much in the past two years. A group that has been ...
-
For long-term performance, investors should consider pivoting their portfolios toward stocks that deliver high and growing dividend payouts,...
-
Dividend investors often get stuck with popular names in their portfolio, perhaps because these stocks are so often talked about that there&...
-
Anxiety over the European debt crisis and distrust in the markets drove volatility in global stock markets to dizzying heights in 2011. The ...
-
Talk to the average financial advisor, and they’ll say there’s no way to earn a safe 12% yield on your investment these days. After all, ban...
-
Any company that can double its dividend over a five-year stretch is delivering rapid payout growth. To reach that target, the company would...
-
Dividend payers have long had a reputation as stodgy companies that can pay a reliable income but whose stocks don't move too fast. Here...
-
By any measure the stock market is overbought. With yields still at historic lows despite the increases in the federal funds rate, and the p...
-
As regular readers know, cash cows constitute mature businesses. Because they have little in the way of growth prospects, these firms pay ou...
-
Buying and holding great dividend stocks is a fantastic way for patient investors to achieve outsize returns over the long run. But not ever...
0 comments
Post a Comment
Post a Comment