8 Low Beta Dividend Stocks With Yields Over 4%
In the current market environment, it is important for income investors to choose their dividend stocks wisely. As volatility increases, investors may want to add some low beta stocks to their holdings to help dampen portfolio volatility. In general, companies with low betas will tend to be less volatile than the general market. With that in mind, we did a screen with the following parameters to find companies that had high dividend yields, low betas, and P/E ratios under 20: Dividend Yield > 4% Avg. 3m Volume > 1,000,000 Stock Price > $10.00 Market Cap > $1 billion P/E Ratio < 20.0x Beta < 1.00 The stocks below meet the parameters above. Use this data as a starting point for your own analysis. It is interesting to note that an MREIT, American Capital Agency... more
Are Stockpickr's 5 Dividend Picks Still Rewarding Shareholders?
We have enjoyed a period of strong stock returns and there has been a desire to look for higher returns even at the cost of increased volatility. Over the past few weeks, we have seen a changing of sentiment and a move to less risky assets. Investing for the long term requires a portfolio that can manage both up and down cycles unless you are willing to jump in and make changes whenever there is a blip in the market -- and assuming you are prescient enough to know where to go. Six weeks ago, Jonas Elmerraji of Stockpickr selected five stocks that have boosted their dividends and we put them into a portfolio to see how they compare against a benchmark set of ETFs. This is a list of the stocks. Exxon Mobil (XOM) Kimberly-Clark (KMB) PPG Industries (PPG) Wells Fargo (WFC) Aetna (AET)... more
Coca-Cola Bottling'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 1 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
McGraw-Hill'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 1 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 flow per... more
Dividends: Grab Some, Forget Some and Dream of Others
Often times dividend companies are a great way for investors to bring in extra income. However, one important fact for investors to remember is a dividend may not make up for a losing company. This may seem fundamental, but the truth is some investors get swooned over by a high yielding dividend and realize after the fact the dividend did not make up for losses in share price. Another possibility to keep in mind is some companies raise the dividend in order to, in theory, keep the share price moving upwards; of course often times this does not work. With that said there are many dividend companies that continue to grow quarter over quarter and year over year. These are the companies investors need to get there hands on. Due to investor sentiment declining, I will begin with five of the... more
12 Dividend Boosters for Dividend Lovers
Recently, we provide you a list of large-cap US stocks with high dividend yields and a dividend boost in the past 12 months. A recent boost in dividends can be an important criterion for some investors as it may suggest further increases in dividend yields down the road. We like dividend stocks and believe that they will outperform the 10-year treasuries over the next 10 years. Below, we compiled another list of 12 large-cap US stocks with high dividend yields and a dividend growth in the past 12 months. The market data are sourced from Fidelity. All companies in this list didn't cut their dividends in any single year since 2006. These stocks have market capitalizations above $4 billion, 12-month dividend yield of at least 3%, and 1-year dividend growth of at least 5%. ... more
Hershey: Dividend Dynamo or Blowup?
Let's examine how Hershey (NYSE: HSY) 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
American Eagle Outfitters: Dividend Dynamo or Blowup?
Let's examine how American Eagle Outfitters (NYSE: AEO) 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
Scotts Miracle-Gro'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 1 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 flow per... more
Domtar'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 1 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 flow per... more