S&P 500 Stocks Yielding More Than 5%

With today's rally in Treasuries and the sell-off in equities, nearly 21% of the stocks (103) in the S&P 500 (SPY) are yielding more than a 10-year Treasury. There are also 20 stocks in the index (listed bellow) that now have an annual yield of more than 5%. While some stocks have high yields because investors are expecting the companies to cut the payout going forward, the list below has some names that are still considered by many to be blue chips, but still pay out nearly twice that of what a 10-year US Treasury pays.... more

TCF Declares Quarterly Cash Dividend of 5 Cents Per Common Share

The Board of Directors of TCF Financial Corporation (“TCF”) (NYSE: TCB) has declared a quarterly cash dividend of 5 cents per common share, payable August 31, 2011 to stockholders of record at the close of business on July 29, 2011. At June 30, 2011, there were 159.6 million common shares outstanding listed on the New York Stock Exchange under the symbol TCB.... more

Chimera: Dividend Dynamo or Blowup?

Let's examine how Chimera (NYSE: CIM) -- of which I purchased shares in a portfolio I co-manage for The Motley Fool -- stacks up in four critical areas to determine whether it's a dividend dynamo or a disaster in the making. 1. YieldFirst and foremost, dividend investors like a large forward yield. But if a yield gets too high, it may reflect investors' doubts about the payout's sustainability. If investors had confidence in the stock, they'd be buying it, driving up the share price and shrinking the yield.... more

2 Automotive Dividends to Buy and 1 to Avoid

It's been nearly five years since Ford (NYSE: F) last paid out a quarterly dividend, while General Motors (NYSE: GM) hasn't paid out a dividend since early 2008, which is well before its bankruptcy and subsequent reorganization. The once-dominant names in American automotive engineering have been reduced to white noise for dividend-seeking investors, begging the question: What's a dividend seeking investor to do? For starters, rather than driving yourself crazy searching for dividend income from a small scope of well-known names, widen your search and you could be surprised by some previously unknown companies. Considering all aspects of automotive production, not just the final product (the car), two names stand out with a strong history of uninterrupted dividend growth. On the other... more

2011's Top Dividend Aristocrats

When searching for great dividend stocks, it makes a lot of sense to start with companies that have been playing the dividend game the longest. Standard & Poor's culls the dividend winners from the also-rans in a list it calls the "Dividend Aristocrats." These companies have paid and increased their dividend for at least 25 years. Standard & Poor's announced its annual adjustment to the Dividend Aristocrats in December, so this is the latest version of the popular list. Below are the 25 highest-yielding constituents, and you can click on any of the green plus signs next to the ticker symbols to add those stocks to your watchlist and get all of our Foolish analysis on the stock.... more

The Extraordinary Power of Dividends: 3M Edition

"Dividends?" he asked. "I'm trying to make my clients wealthy. You don't do that waiting for tiny checks in the mailbox every quarter." Even then, I had enough horse sense to know he was wrong. Paying attention to dividends is exactly how you become wealthy over time.... more

Highest-Yielding Industrial Stocks (You Might Actually Want to Buy)

What's more, reinvesting dividends acts as a "bear-market protector and return accelerator," according to Siegel. The extra shares purchased and accumulated at higher dividend yields during down periods act as a protector in falling markets, and these extra shares rising in value turn into a "return accelerator" when prices rise. As the recent economic crisis illustrated all too well, however, you can't buy just any high-yielding stock. Dividends that get cut or suspended entirely can wreak havoc on a stock price -- and thus, your portfolio.... more

The Extraordinary Power of Dividends: Procter & Gamble Edition

"Dividends?" he asked. "I'm trying to make my clients wealthy. You don't do that waiting for tiny checks in the mailbox every quarter." Even then, I had enough horse sense to know he was wrong. Paying attention to dividends is exactly how you become wealthy over time.... more

Monsanto's Dividend Is Safe

Here, we'll highlight a given company and its closest competitors to see just how safe their dividends are, with a little help from three crucial tools: The interest coverage ratio, or earnings before interest and taxes, divided by interest expense. The interest coverage ratio measures a company's ability to pay the interest on its debt. An interest coverage ratio less than 1.5 is questionable; a number less than one means that the company is not bringing in enough money to cover its interest expenses. The EPS payout ratio, or dividends per share divided by earnings per share. The EPS payout ratio measures the percentage of earnings that go toward paying the dividend. A ratio greater than 80% is worrisome. The FCF payout ratio, or dividends per share divided by free cash... more

The Most Promising Dividends in Management Services

Dividend payers deserve a berth in any long-term stock portfolio. But seemingly attractive dividend yields are not always as fetching as they may appear. Let's see which companies in management services offer the most promising dividends.
Yields and growth rates and payout ratios, oh my! Before we get to those companies, though, you should understand just why you'd want to own dividend payers. These stocks can contribute a huge chunk of growth to your portfolio in good times, and bolster it during market downturns.... more