Honeywell: Dividend Dynamo or Blowup?
Dividend investing is a tried-and-true strategy for generating strong, steady returns in economies both good and bad. But as corporate America's slew of dividend cuts and suspensions over the past few years has demonstrated, it's not enough simply to buy a high yield. You also need to make sure those payouts are sustainable.
Let's examine how Honeywell (NYSE: HON) stacks up. In this series, we consider four critical factors investors should examine in every dividend stock. We'll then tie it all together to look at whether Honeywell is a dividend dynamo or a disaster in the making.... more
10 Midcap High Yield Stocks Going Ex-Dividend This Week (January 23 - 29)
Dividend stocks are wonderful because they increase my cash with regular payments. One major date in relation to the payment is the ex-dividend date. If you own a stock before this date, you get the next payment. This is very interesting, because in the case of a high yield stock, I can earn at least one percent in cash for a short period of investing. I screened stocks with ex-dividend date within the upcoming week. 86 common and preferred shares have their ex-dividend date between January 23 and January 29. Exactly 33 of them have a yield of more than 5 percent. Many of them have a high yield, because the market believes that the dividend is not sustainable. Especially in the case of low capitalized stocks, the possibility of a dividend cut is much higher as for stocks with a higher... more
Southern Copper: Dividend Dynamo or Blowup?
Dividend investing is a tried-and-true strategy for generating strong, steady returns in economies both good and bad. But as corporate America's slew of dividend cuts and suspensions over the past few years has demonstrated, it's not enough simply to buy a high yield. You also need to make sure those payouts are sustainable.
Let's examine how Southern Copper (NYSE: SCCO) stacks up. In this series, we consider four critical factors investors should examine in every dividend stock. We'll then tie it all together to look at whether Southern Copper is a dividend dynamo or a disaster in the making.... more
7 Mega-Dividend Stocks Worth The Risk
When a company pays a very large dividend, it can be a move designed to attract investors in spite of poor earnings. This isn't always the case but it is something to watch for. Also, high dividends are not guaranteed - the dividend a company offers one day could be discontinued at any time - so investors would do well to vet high-yielding stocks carefully to get an idea whether the dividends offered are sustainable. Larger companies, like those with market caps over $2 billion, tend to pay more stable dividends, as do those with strong EPS growth, even those that pay dividend yields over 10%, like the ones on this list. Again, there is no guarantee that these companies will continue paying dividends at that rate, or continue paying them at all, but with dividends this high, they are... more
12 Best Yielding Large Capitalized Stocks On NASDAQ
Stocks from the technology exchange, the Nasdaq, are often characterized by high growth and low dividends. On the exchange, there are 2,727 companies listed, of which 797 pay dividends. The biggest yields come from the financial sector. Further, there are many small capitalized stocks with not sustainable double-digit yields. But how can we find attractive dividend opportunities? A first step could be the exclusion of all small and mid-capitalized stocks. As a result, 42 large capitalized stocks remained, and 12 of them have a price to earnings ratio below 15. They all have buy or better rating outstanding. Here are the results in detail sorted by dividend yield: 1. Vodafone Group (VOD) has a market capitalization of $139.58 billion. The company employs 83,862 people, generates revenues... more
Freeport-McMoRan: Dividend Dynamo or Blowup?
Dividend investing is a tried-and-true strategy for generating strong, steady returns in economies both good and bad. But as corporate America's slew of dividend cuts and suspensions over the past few years has demonstrated, it's not enough simply to buy a high yield. You also need to make sure those payouts are sustainable.
Let's examine how Freeport-McMoRan (NYSE: FCX) stacks up. In this series, we consider four critical factors investors should examine in every dividend stock. We'll then tie it all together to look at whether Freeport-McMoRan is a dividend dynamo or a disaster in the making.... more
5 Excellent Stocks Under $10 Yielding 3% Or More
A common strategy that is used in the markets is to buy strong companies at low prices. The basic idea is that these firms can offer a strategic advantage for growth and will pay compelling dividends. This is when the portfolio can begin to average 7.1% per year (based on the historical mean of these stocks from 1972 to 2010). To see if Nokia (NOK), Frontier Communication (FTR), Banco Santander (STD), Companhia Siderurgica Nacional (SID) and Hudson City Bancorp (HCBK) fall into this category requires looking at each one individually. This will be accomplished by examining the fundamentals, dividends and the momentum to determine which stock is a buy. Therefore, please use this analysis as a starting point for future research. Nokia Nokia has a yield of 9.30% and a forward price... more
6 Stocks Ready To Boost Dividends In 2012
We're already through the first steps in 2012 and looking out for the best deals in stocks. The 6 stocks presented below are the most likely in my opinion, to hold out prospects for an increase in dividends. JPMorgan Chase & Co (JPM) is a global financial services company, and the second largest bank in the United States in terms of market capitalization ($125 billion). JPMorgan Chase fell around 25% in the last year, quite contrary to the notion as suggested by many analysts at the end of 2010, who said that JPMorgan Chase will hit the $50 mark. The stock is currently trading near the $33 mark, a 25% discount to its book value of $45. Although JPMorgan Chase reported a meager 3.60% quarterly revenue growth (YoY), it has a mammoth cash per share balance of $237 on its balance sheet.... more
5 High Growth Stocks That Pay Dividends
Dividend investors usually don't go for stocks that yield less than 5% because they usually rely on the dividend income for their daily expenses. Younger, conservative investors have more options though. Instead of opting for low growth stocks with modestly high dividend yields, they can invest in stocks that have lower yields but grow at a much faster pace. These companies signal their willingness by offering dividends and they are more likely to boost their dividends significantly as their profits increase. The companies on this list are high-growth. They are estimated to have EPS growth of greater than 25% on average per annum over the next five years. They also have market caps over $2 billion and pay dividend yields over 2%. Arch Coal, Inc. (ACI) is an industrial metals and minerals... more
6 Stocks With Very Risky Dividends
Dividend stocks live and die by their ability to keep their dividend payments flowing and increasing. Companies that strain to pay their dividend can quickly run into problems. I analyzed a group of six stocks with some precarious situations to see how vulnerable the dividends of each of these stocks and explore how likely each could get cut in 2012. One of the key elements to look at is the payout ratio: how much of a company's earnings are being paid out in dividends. For most companies, a payout ratio above 80 throws up warnings - it may be robbing operational capital to keep the dividend paid. Some companies, like REITs, are set up differently and have to pay at least 90% of earnings in dividends but can go higher, even over 100% for a short period of time. The REIT Annaly Capital... more