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
-
So, stocks are the place to go. But which stocks? While the market is clearly the place to go for strong returns, investors have different p...
-
Strange but true: seniors fear death less than running out of money in retirement. So what's a retiree to do? You could cut your expense...
-
If you're anticipating a long retirement, you'll want to remain invested in stocks to give your money a chance of outpacing inflatio...
-
One way to identify suitable candidates is to look for stocks with an average dividend yield of 3%, and positive average annual dividend gro...
-
When writing this article, I was looking for an ideal list of dividend-paying stocks that consistently raise their dividends each year. In a...
-
If I could teach investors one thing, it would be how to identify and value “Forever Assets.” These businesses constitute the single best wa...
-
Exxon Mobil Corporation (NYSE:XOM) stock is trading at the same level as it was during the beginning of 2019. Even with company-specific pos...
-
As a new decade approaches, it's a good time to think about putting a few stocks in your portfolio that can stand the test of time, pote...
-
One of the Best Dividend Stocks of the Past Decade. If you ask most people to name the best dividend stocks, they’ll rattle off a similar li...
-
Dividends are profit sharing payments sent out to stockholders. Companies have a variety of reasons for paying them, ranging from simply swe...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.