PNM Resources Board Declares Quarterly Dividends for Common Stock and Preferred Series A Stock

The Board of Directors of PNM Resources (NYSE: PNM) today declared the regular quarterly dividends of $0.125 per share on its common stock and $1.25 per share on its convertible preferred Series A stock, of which each share is convertible into 10 shares of common stock. The indicated annual rate is $0.50 per share of common stock. The dividends are payable Aug. 15, 2011, to shareholders of record at the close of business Aug. 1, 2011.... more

ADTRAN, Inc. Reports Record Results for Second Quarter 2011 and Declares Quarterly Cash Dividend

ADTRAN, Inc. (Nasdaq: ADTN) reported results for the second quarter of 2011. Sales increased 23% to an all time record level of $184,227,000 for the quarter, compared to $150,361,000 for the second quarter of 2010. Operating income increased 33% to an all time record level of $51,310,000 for the quarter compared to $38,617,000 for the second quarter of 2010. Net income increased 33% to $36,943,000 for the quarter, compared to $27,751,000 for the second quarter of 2010. Earnings per share, assuming dilution, increased 27% to $0.56 for the quarter, compared to $0.44 for the second quarter of 2010.... more

High-Yield Dividend Stocks With Bullish Options Sentiment, Undervalued to Free Cash Flow

The most common and sustainable source for companies to pay dividends is through free cash flow. Although companies could use cash reserves from prior periods or even borrow money to continue paying their dividend, free cash flows are the “long-lasting” source. With this idea in mind, we screened high-yield stocks (with dividend yields above 3%) for those that have high free cash flow per share relative to their stock price (with P/FCF under 10). This not only indicates that the company has a healthy amount of free cash flow to pay dividends, but also may indicate an undervalued opportunity. On top of this screen, we searched for stocks that have also seen significantly bullish changes in put/call ratio over the last ten trading days. Interactive Chart: Press Play to compare changes... more

5 Companies Paying Large Dividends Fully Covered by Earnings

We recently highlighted seven companies paying large dividends that are fully covered by earnings. Due to the unusually large interest in the article, we decided to revisit the same screen and dig up five more companies that meet the previously established criteria for inclusion. Above all, we looked for companies offering a dividend yield of at least 5%, with consensus analyst EPS estimates for this year and next year each exceeding the per-share amount of the indicated annual dividend. Here is what we found:Eli Lilly (LLY) [$38 per share; MV $44 billion; EV $44 billion] is a major pharma company, with franchises in neuroscience (e.g., Zyprexa, Cymbalta), endocrinology (e.g., Humalog), oncology (e.g., Alimta), and cardiovascular products (e.g., Cialis). Worldwide sales of key drug... more

These Dividend Kings Are No Gamble

In an unusual turn, the machines were loving me when I first sat down. Two four-of-a-kinds at Binion's quickly turned my $20 into $90, and after some back and forth, I cashed out $80. By the time I sat down again at Green Valley Ranch, though, Lady Luck had abandoned me and the entire $80 was quickly gobbled up. By the numbersWhile I'll readily admit disappointment, I wasn't one bit surprised at the outcome. Based on the way the payouts are set at most casinos, if you play perfect poker, then the machine will return around 97% to 99% of your money to you.... more

Investing in Dividend Aristocrats (Part 2)

In our previous article we compiled a list of 21 stocks that form the S&P 500 (SPY) Dividend Aristocrats Index and showed that they have beaten the SPY since the beginning of this year. The S&P 500 Dividend Aristocrats Index tracks the large-cap S&P 500 companies that have increased their dividends for at least 25 consecutive years. Since the beginning of 2011, 42 stocks in the S&P 500 Dividend Aristocrats Index returned 8.8% vs. 6.85% gain for the SPY. (The market data are sourced from Standard & Poors and Fidelity) We believe investors should be cautious of the upcoming inflationary environment and play more defensively in the near future. We think the Dividend Aristocrats that are able to increase dividends may provide protection against inflation with a better risk-return... more

How Long Can Dividend Stocks Rule?

What a long strange trip it's beenTwo years ago, you might not have thought we'd ever get to this point. Back then, the history of dividend-paying stocks had been turned upside down, as more companies were cutting their payouts than raising them. During the second quarter of 2009, Standard and Poor's said that fewer companies raised their dividends than ever before -- just 233, which was less than the 250 that made dividend cuts in the same period. Fast-forward to today, however, and the picture is entirely different. Last quarter, 444 companies paid more in dividends than in the previous quarter. Meanwhile, dividend cuts were practically nonexistent, with just 21 companies wielding a knife to their payouts.... more

This International Dividend Stock Blows Past Estimates

A close look at the numbers shows that if you haven't bought a piece of this Costco (Nasdaq: COST) spinoff yet, it's not too late. PriceSmart would fit nicely into any portfolio as an international stock that pays a modest 1% dividend. Crushing estimatesIt's a good time to be a retailer. U.S.-based retailer Target (NYSE: TGT) recently came out with a brilliant earnings report, growing earnings per share by 10% over the same period last year. But even Target couldn't compete with PriceSmart's latest release, which revealed a 38% uptick in EPS.... more

These Foreign Dividends Won't Freak You Out

But if you venture abroad for great dividend stocks, you'll quickly notice something: you often won't get those dependable dividend amounts. Not only can you not depend on dividends staying stable from quarter to quarter; you may not even get a dividend every quarter. If you're not prepared for the way a certain company pays its dividends, you might be in for an unpleasant surprise. A different point of viewIn the U.S., investors looking for strong dividend stocks tend to focus on three things. A stock's dividend yield is the most important factor, telling you what you can expect if you invest in shares today.... more

Using Options to Generate Income in a High Yield Portfolio

I regularly track a High Yield Dividend Champion portfolio. This month's update includes a purchase of MGE Energy (MGEE) and Sysco (SYY). Investors interested in generating income or hedging against a neutral can also use a variety of option strategies to enhance this, or any, portfolio. Probably the most common option strategy is the covered call. This strategy entails writing (selling) a call option while at the same time owning an equivalent number of shares in the underlying stock. An investor who sells a covered call is selling the right to purchase shares in the underlying stock at a set price before a set date ("expiration date"). The investor selling the covered call increases his or her income by selling this right to another investor. Selling covered calls is not without risk.... more