Produce Income With High Yield Pipeline Master Limited Partnerships

Those investors who are looking for high dividend yields should consider pipeline master limited partnerships (MLPs). Over the last ten years, MLPs have been the best performing asset class in the world. MLPs have grown from $30 billion invested in 2003 to $250 billion invested today. We like the pipeline companies because they are not levered to the price of oil or natural gas. They merely act as mid-stream fee collectors as they transport oil and gas from point A to point B. This immunity from the price of oil and gas has a strong appeal to income producing investors who don't want their investments fluctuating with commodity prices. I found six pipeline MLPs with high dividend yields that we'll explore to determine if they are investment worthy. Cheniere Energy Partners (CQP) is a... more

7 Dividend-Yielding Stocks For The Next 5 Years

Just because a company pays dividends, it does not mean that stock is a good investment. In fact, companies often offer dividends in order to make up for low earnings expectations, slow growth or a risky patch. In other words, investors have to choose high-dividend yielding stocks carefully. One way to do this is to keep the focus on larger companies that have strong earnings growth estimates in addition to decent dividends. These companies will boost their dividends as their earnings grow at a high rate. We developed a list of companies that fit our criteria. Specifically, the companies on this list have market caps over $2 billion, pay dividends over 3% and have EPS growth expectations of over 15% per annum on average for the next five years. Watsco, Inc. (WSO) is an electronics... more

Technology Stocks With Sustainable Dividends

With dividends becoming increasingly more important, it is time to start looking for high dividend yields in unexpected places. The technology sector as a whole does not pay much of a dividend. The most popular technology stock ETF, PowerShares QQQ (QQQ) pays a dividend of just 0.77%. However, there are some technology stocks that offer outsized dividends. This article will look at technology companies with high dividend yields that are sustainable.Microsoft (MSFT) Yield: 2.69% Payout Ratio: 29% While not the highest yielding tech stock, MSFT 's dividend is the most sustainable. In addition to the low payout ratio, MSFT has over $6 per share in cash that could be used to boost the dividend. Intel (INTC) Yield: 3.18% Payout Ratio: 35% Similar to MSFT, INTC has plenty of cash ($2.91... more

5 Dividend Standouts Yielding Up To 6%

If you're frustrated by the paltry 2% yield of the average stock in the S&P 500 (SPY), you're not alone. Thankfully, you don't have to reach for yield by investing in unstable companies or engineer a complex options strategy just to get little extra income. Readers of my High-Yield Investing newsletter know that it's just a matter of knowing where to look. These five stocks offer more than double the average yield of the U.S. equity market -- and have far outperformed it. The S&P 500, gained about 2% in 2011, including dividends, but these standouts actually delivered average total returns of 35.4% in the same 10 months. Their long-term performance is just as impressive. In the past half decade, they returned an average 11% a year, while stocks in the S&P 500 are at break-even. To find... more

5 Stocks With 4%+ Yields Going Ex-Dividend This Week

Is it time to flee to safety? With the economic and political climates only becoming more tumultuous I have been concentrating on high yield equities recently. We all know about the blue chip dividend companies but there are attractive companies with high yields that are going ex-dividend every week. This strategy can work in one of two ways: either you buy before the ex-date to receive the dividend or buy after if the stock declines far below the after-tax amount of the dividend. Buying the stock to receive the dividend... more

Global Dividend ETFs: Diversification Or More Of The Same?

Income investors who purchase regionally-themed or industry-themed equity exchange-traded funds for dividend yield may be embracing risks they do not expect. The logic behind adding dividend-paying stocks from other countries to diversify an income portfolio is sound, but some fund holdings are hard to swallow. The Allure of Using Themed ETFs for Income Income investors who purchase dividend paying stocks hope to find steady income. A diversified mix of dividend-paying stocks, well-rated corporate bonds, and small allocations to alternative investments is a typical strategy to achieve this goal. Most investors tend to over-invest in their domestic markets and can reduce risk by buying foreign stocks. Diversification across markets is a "free lunch" which, if done prudently, reduces... more

SJI Declares Quarterly Dividend

South Jersey Industries’ (NYSE: SJI) board of directors declared its regular dividend of $0.4025 per share for the first quarter of 2012. The dividend is payable April 3, 2012 to shareholders of record at the close of business March 9, 2012. This is SJI’s 61st consecutive year of paying dividends, reflecting the company’s commitment to a consistent, sustainable dividend.... more

Verizon Communications Inc. (VZ) Dividend Stock Analysis

This article originally appeared on The DIV-Net January 16, 2012. Linked here is a detailed quantitative analysis of Verizon Communications Inc. (VZ). Below are some highlights from the above linked analysis: Company Description: Verizon Communications Inc. offers wireline, wireless and broadband services primarily in the northeastern United States. It acquired MCI in 2006 and has since sold or spun off non-core assets. Alltel was acquired in early 2009. Fair Value: In calculating fair value, I consider the NPV MMA Differential Fair Value along with these four calculations of fair value, see page 2 of the linked PDF for a detailed description: 1. Avg. High Yield Price 2. 20-Year DCF Price 3. Avg. P/E Price 4. Graham Number VZ is trading at a discount to only 3.) above.... more

These 8 Bank Stocks Could Be Tomorrow's High-Yielders

Many of the big U.S. banks have already reported their financial results for 2011. The overall reports were quite impressive, considering that just three years ago there were major concerns that a number of them wouldn't be able to survive the credit crisis. The recent financial reports demonstrate that bank profits have largely recovered to pre-crisis levels and are set to expand in the next few years by as much as 10% annually. The largest banks are now sitting on billions dollars in exces(s cash and are ready to start returning it to shareholders as soon as they get the green light from the Federal Reserve. (After the U.S. government bailed out the financial sector during the height of the credit crisis in late 2008, one of the Fed's first decisions was to reduce or eliminate... more

Dividend Contenders Vs. Dogs Of The Dow In January

Last week David Fish published his Dividend Contenders: Smackdown XXII here on Seeking Alpha. He defines Contenders as "companies that have paid higher dividends for 10-24 years." This article utilizes the dogs of the index strategy to sort David's Top ten Contenders as of January 13 into a suitable grouping of ten to trade. The aim of this article is to help determine which dividend stocks are good, better, best, bad or ugly. This article also aims to provide strong evidence of the need to heed Yale professor Robert Shiller's observation: "People still place too much confidence in the markets and have too strong a belief that paying attention to the gyrations in their investments will someday make them rich, and so they do not make conservative preparations for possible bad outcomes." ... more