Income Investors: 5 Fabulous High-Yielding REITs
With the commercial and residential real estate markets approaching a bottom, in our opinion, now could be a good time to ride the wave on up with REITs. Additionally, given the nature of REITs, collecting dividend payments is an added bonus. By law, REITs have to pass on 90 percent of their taxable income to stockholders. Below are 5 REITs that you should consider for your fixed-income portfolio. And if REITs aren’t your thing, we came up with 5 safe dividend ideas you can read about here and, also published recently, Smart Investors Should Look at 5 High-Yielding REITS. Annaly Capital Management (NLY) This company has been around since 1997, and has paid a healthy quarterly dividend going back 10 years. The most recent dividend was $0.62, which is a 13.6 percent current yield. The... more
The Most Promising Dividends in Business Information
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
United Technologies' 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
High Yield Dividend and Momentum Portfolio for June
Once per month I run a high-yield dividend stock momentum screen and use the results to manage a hypothetical stock portfolio on Scott's Investments. The strategy did relatively well in 2010 and is one I continue to track because of its promise. In recent months I have also done a variation of this strategy with the Dividend Champions list in which I only search stocks that have had a history of raising dividends for 25-plus years. The screen looks for high yielding high momentum stocks and last month's list is here. I screen the S&P 500 for stocks yielding greater than 4% and then rank them by six-month returns. There were 47 results on June 9th (as opposed to 43 last month) and... more
Highest-Yielding Energy 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
CSX'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
Emerson Electric'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
Pfizer'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
4 Stocks Growing Their Dividends
Dividend sustainability is paramount for the high-yield investor. Having a stock cut its dividend could potentially crush their income. A high-yield investor is less concerned about dividend growth than maintaining the current high-yield. Most traditional dividend growth stocks pay a moderate to low yield, thus sustainability is not enough - the dividend growth investor also expects substantial and consistent growth.Below are several companies not only sustaining their dividends, but growing them: National Fuel Gas Company (NFG) operates as a diversified energy company primarily in the United States. June 9th the company increased its quarterly dividend 2.9% to $0.355 per share. This action marks the 109th year of uninterrupted dividend payments and the 41st consecutive year that National... more
4 Oversold Dividend Stocks With Low Debt
If you’re considering dividend stocks, you should also consider the amount of debt those companies are holding. Because debtholders are always paid before dividends to shareholders, large amounts of company debt can threaten a dividend’s stability. We ran a screen on today’s technically oversold stocks (with RSI(14) < 40) for those that pay handsome dividend yields (above 2% based on the most recent quarter). These companies also have low long-term debt under 10% of market cap. We also controlled for sustainable payout ratios less than 35%.Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research. Your browser does not support iframes. Do you... more