Income Ideas: 16 Undervalued High Yield Stocks With Good Dividend Coverage Ratios

If you are looking to increase your portfolio’s income profile, then you may find this article to be a good starting point for your own analysis.
To construct this list we looked for companies with dividend yield above 2%, a payout ratio below 50% and trading below book value, i.e. P/B < 1. Once we had gathered this universe of over 50 stocks, we went trough each of these names’ operating and levered free cash flows and kept those with:

Operating cash flow/annual dividend > 1.5
Levered free cash flow/annual dividend > 1.5... more

Alaska Communications: Dividend Dynamo or Blowup?

Let's examine how Alaska Communications (Nasdaq: ALSK) 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 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

Boost Your Dividend Yields With This Strategy

This approach could help you eke out a few extra percentage points in yield, in addition to the dividend yield you're already receiving. If you master the strategy, you might even be able to pocket an additional 15% to 20% per year in additional income. How is this even possible?You can add some extra yield to your large-cap positions with options.... more

How to Create a Dividend for These 7 Stocks

There's nothing complicated about thisOne intriguing approach involves options. Before your eyes glaze over, I want to emphasize that there is nothing complicated about it. If you read the next few paragraphs, you will understand how to generate income on stocks that don't pay a dividend --without any additional investment. To understand the strategy, you need to know a few terms first -- options lingo. Call options give their owner the right to buy a stock at a predetermined price (the "strike" price) on or before a set date (the "expiration date.") If you sell a call option, the amount you receive is the option "premium." If the buyer ends up exercising the option (we'll get to why that might occur), the option seller has the obligation to sell the stock at the strike price.... more

3 Reasons You'll Lose Your Dividends

Like the world-weary prince that's finally found his princess, the last thing investors want to see now is the dividend payers in their portfolio slash their payout. While there are exceptions, in most cases, a stock that loses its dividend provides a double-whammy for your portfolio because not only have you lost your income stream, but the stock has likely been battered by the market. So how do you avoid picking stocks that will put a dividend in your pocket one day and have you grasping at air the next? Here are three red flags to look out for.... more

11 High-Yield Stocks With Decreasing Payout Ratios and Improving Cash Flows

Are you looking for candidates to boost your portfolio’s income? If so, you may find this article to be an interesting starting point for your own research. With that in mind, we looked for all the companies with market caps above $300M and dividend yields above 2%. Consequently, we looked for each of these names’ payout ratios, operating cash flows and revenues. Ultimately, we kept those companies with the following three characteristics: - TTM payout ratio < 3-year average payout ratio - TTM Operating cash flow/revenue > 3-year average operating cash flow/revenue - Expected dividend per share > most recent dividend per shareYour browser does not support iframes.Your browser does not support iframes. We also created a price-weighted index of the stocks mentioned... more

30 'Overdue' Dividend Increases: Payouts in Peril?

In compiling a Dividend Champions list, I get to see which companies are nearing the anniversaries of their previous dividend increases. Most of these firms raise their payout about the same time every year, but some companies go longer before boosting their dividends, and this can raise concerns about their streaks of increases. Dividend-Doubt Series This is the third in a monthly series listing companies whose latest dividend increase might be considered “overdue” because these companies have gone more than a year since their previous increase, a possible sign that the dividend (or at least the streak of increases) is in danger. (Note that the dates for these companies appears in red in the Dividend Champions spreadsheet and PDF.) Some firms regularly go more than a year between... more

Southern Copper: Dividend Dynamo or Blowup?

Let's examine how Southern Copper (NYSE: SCCO) 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 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

The Most Promising Dividends in Stone, Clay, Glass, and Concrete Products

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. As my colleague Matt Koppenheffer has noted: "Between 2000 and 2009, the average dividend-adjusted return on stocks with market caps above $5 billion and a trailing yield of 2.5% or better was a whopping 114%. Compare that to a 19% drop for the S&P 500."... more

B&G Foods: Dividend Dynamo or Blowup?

Let's examine how B&G Foods (NYSE: BGS) 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 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