Six No-Tricks High Yield Dividend Stocks

If you do a search or  stock screen for high yield stocks, the list will be heavily populated with stocks working under special tax provisions. These stocks will be organized as master limited partnerships - MLPs - or real estate investment trusts - REITs. These companies must pay out the majority of earnings as dividends, which leaves little cushion if earnings fall. These stocks can also be a pain at tax time. A list of dividend stocks not including REITs and MLPs will provide companies from a more diversified list of sectors and paying out a smaller portion of earnings as dividends. The six stocks discussed here meet the following criteria:   ·U.S. companies listed on the NYSE or Nasdaq ·Dividends have increased for at least 10 consecutive years ·No MLP or REIT stocks ·Screened for liquidity as evidenced by adequate daily trading volume  For comparison, a typical blue-chip stock with a history of dividend increases currently yields 2.5 percent, plus or minus half a percent. Here is the list. Pitney Bowes Inc. (NYSE: PBI) Pitney Bowes is a provider of business office supplies, best known for postage machines.  Although the use of stamps is declining, PBI sports a yield of 6.5 percent and the company is forecast to post high single digit sales and earnings growth for the next half decade. PBI has a market cap of $4.6 billion. Mercury General Corp. (NYSE: MCY) Mercury General provides auto and homeowner's insurance products. The current dividend yield for MCY is 6.2 percent. The $2.40 annual dividend is 90 percent of the projected $2.65 in per share earnings, yet MCY has a long history of annual dividend increases. Market cap is $2.1 billion. Cincinnati Financial Corp. (Nasdaq: CINF) Cincinnati is also an insurance company, writing polices for both personal and commercial property and casualty plus life insurance. The current dividend of $1.60 per year provides a yield of 5.6 percent. CINF earned $2.27 in 2010 but the forecast is for lower earnings in 2011, so keep an eye on the quarterly news. Market cap is $4.6 billion. Altria Group Inc. (NYSE: MO) This stock may be better know by its previous name, Phillip Morris. Selling cigarettes is bad for the public health, but good for dividend investors. MO currently yields 5.6 percent with good earnings coverage. Altria Group has a market cap of $57 billion. A T & T (NYSE: T) AT&T also carries a 5.6 percent dividend yield, yet only pays out 50 percent of net income as dividends. The payout ratio for AT&T is significantly lower than the other stocks listed here. T has a market cap of $183 billion, making it one of the largest U.S. companies. If you are looking for a current high dividend yield plus a history of dividend increases, take a look at the stocks discussed here.  ... Read more