As regular readers know, cash cows constitute mature businesses. Because they have little in the way of growth prospects, these firms pay out most of their profits as dividends. As a result, these stocks pay out some of the highest yields around. It’s not uncommon to see cash cows paying out yields as high as 12%, 15%, or even 21%. For investors who need portfolio income, these businesses could be the perfect solution.
Case in point: propane distributor Ferrellgas Partners, L.P. (NYSE:FGP). With a dividend yield topping almost 12%, Ferrellgas stock is one of my favorite income streams around. Here’s why. The propane business throws off a lot of cash flow, to begin with. Ferrellgas earns a small fee on every gallon delivered to customers. While propane prices can be volatile from year to year, the actual volume of fuel delivered stays relatively consistent. Most homes built today use alternative forms of energy. As a result, the nation’s use of propane flatlined years ago. So rather than invest in many expansion projects, Ferrellgas is content to just milk its existing operations for easy cash flow.
Source: Income Investors
Related Articles:
- 10 Dividend Stocks With A 10% Yield In 10 Years
- Are ETFs and CEFs Good Dividend Growth Investments?
- 6 Companies With The Power of 5/15 Dividend Growth
- Searching the World For The Best Dividend Stocks
- What's Your Retirement Vision?
________________________________________________________________
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