4 High-Dividend Stocks In Oversold Territory

2011 has been the year of dividend investors. The old-n-good Dow 10 strategy (where one picks and holds the top 10 dividend stocks in the Dow Jones index) significantly outperformed the market. I think investing in dividend stocks is one of the safest ways to achieve long-term success in the stock markets. Dividend stocks have a tendency to be ignored by investors. However, when we look at the markets over a long-term horizon, a significant portion of the returns are due to the dividends. The dividends can also provide a safety cushion against market downturns. I have a natural tendency to go against the crowd. If a stock is overbought, I rate it as a sell. On the contrary, whenever a stock is oversold, it appears as a short-term deal to me. At least I believe that oversold stocks should... more

5 'Dead Money' Dividend Stocks To Avoid

A common strategy that most investors will use is to identify strong buys based on the company's ability to pay dividends. This is from the thinking that only the strongest firms can afford to pay shareholders a regular dividend. The fact that this requires actual cash from the earnings means that these firms will have more stability and consistent growth. Over the course of time, this could provide investors with an above-average return. To determine if some of the strongest companies in the markets meet this criterion requires examining Alcoa (AA), FedEx (FDX), United Parcel Service (UPS), Lowes (LOW) and PepsiCo (PEP). Alcoa Alcoa yields 1.20% and has a forward price earnings ratio of 10.00. The balance sheet includes $24.26 in revenues, $1.9 billion in cash and $9.37 billion in... more

Great Dividend Payers With Low Debt: 2 Great Choices

With short-term interest rates still sitting at near 0%, more and more investors have begun to seek out companies paying a reasonable dividend yield. But as many have pointed out, including myself, it's not just about the yield. The consistency and growth rate of the dividend are of utmost importance as well. With that in mind, let's take a look at two solid companies with low debt, dividend yields above 4%, and a strong five year dividend growth rate above 8%. American Greetings (AM) Owens & Minor, Inc., together with its subsidiaries, provides distribution, third-party logistics, and other supply-chain management services to healthcare providers and suppliers of medical and surgical products, as well as distributes medical and surgical supplies to the acute-care market. Its services... more

Alexander’s Declares an Increased Quarterly Dividend of $3.75 per Share (a New Indicated Annual Rate of $15.00)

Alexander’s, Inc. (NYSE: ALX) today announced that its Board of Directors has declared an increased quarterly dividend of $3.75 per share (a new indicated annual rate of $15.00). The former annual rate was $12.00 per share. The increased dividend will be payable on February 21, 2012 to stockholders of record on January 30, 2012.... more

How To Reinvest Dividends: To Each His Own

We all love dividends, and many of us love to reinvest them once we receive them. Reinvesting dividends can increase the size of one's portfolio significantly over the years, but there are debates about how to reinvest these dividends. Should someone reinvest the dividend as soon as receiving it, or should one wait for the stock price to fall in order to reinvest the dividend? What if the stock price is very high by the time the dividend is issued and one wants to wait till the price falls in order to reinvest? I looked at this case, using an example - AT&T (T). Let's say someone bought 100 shares of AT&T in 2002 and held onto those shares till today. Also assume that this person kept reinvesting his dividends as soon as he received them. Looking at the historical dividend rates of AT&T,... more

11 Dividend Kings, Raising Dividends For Over 50 Years

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50 Top Yield Stocks In 5 Indices: A Fish CCC/Carnevale Dog Show

This new monthly series compares relative strengths of five stock indexes by yield and dividend vs. price gaps using projected annual dividends from $1000 invested in the 10 highest yielding stocks in each index. This is another part of an ongoing effort to respond to the question, "which dividend stocks are good, better, best, bad or ugly?" The effort also aims to uncover 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." Previous posts in December brought forward the Carnevale Power 25 Index as a dividend dog... more

Plug Into Dividends From These 7 Growing Utilities

In light of low bond yields and the threat of interest rate risk, investing in dividends companies is attractive because of higher present yields and the opportunity for dividend growth. Income investors searching for growing dividends could benefit by adding utility companies to their portfolios. The following dividend paying stocks were screened for their long term performance. Each of the following utility stocks pays a dividend in excess of the 10-year Treasury yield and had over a 5% average annual increase in dividend payments over the past 10 years. Thus, each of these dividend stocks pays more than Treasuries and has a long-term trend of dividend growth, which is better than the static interest payments on fixed-rate treasuries. Price multiples, dividend histories, and return of... more

Growing Dividend From 12 Healthcare Stocks

In light of low bond yields and the threat of interest rate risk, investing in dividend companies is attractive because of higher current yields and the opportunity for dividend growth. Income investors searching for growing dividends could benefit by adding healthcare companies to their portfolios. The following dividend paying stocks were screened for their long-term performance. Each of the following healthcare companies pays a dividend in excess of the 10-year treasury yield and had over a 5% average annual increase in dividend payments over the past 10 years. Thus, each of these dividend stocks pays more than treasuries and has a long-term trend of dividend growth, which is better than the static interest payments on fixed-rate treasuries. Price multiples, dividend histories, and... more

10 High-Dividend ETFs

Given the unbelieveably low interest rates available on the fixed income markets today, many investors are taking a renewed interest in dividend investing. However, this often means single stock investing, which can be both time consuming and risky. Below is a list of 10 ETFs that offer great yield (>6%), reasonable expense ratio (<0.75%), cash flow yield greater than dividend yield, and no return of capital factored into the yield rate. Consider these unusual funds as sources of dividend income and diversification for your portfolio NLR - Market Vectors Uranium+Nuclear Energy ETF Tops on the high yield ETF screen is NLR, a narrowly focused ETF seeking to replicate the performance of the nuclear value chain. Note that the almost 13% yield is inflated by an ever shrinking... more