How Good Are the Fool's 4 Special Dividend Plays?

We continue to examine stock portfolio recommendations from luminary publications to see whether we can mix ETFs and equities to create a portfolio with good risk/return properties that is easy to live with for the long term investor. Recently both Forbes and The Street have made recommendations for growth stocks for value investors. We recently covered the Forbes offering which was: Allegiant Travel Company (ALGT) AmTrust Financial Services, Inc (AFSI) Calavo Growers, Inc. (CVGW) Coca-Cola Company (KO) Tata Motors Ltd Tata Motors (TTM) AmerisourceBergen Corporation (ABC) Becton, Dickinson and Company (BDX) Cal-Maine Foods, Inc. (CALM) Darden Restaurants, Inc. (DRI) Tim Hortons Inc. (THI) We then covered the Street's offering which was: Apple Inc. (AAPL) Polo Ralph... more

10 Dividend Stocks for the Next Decade

However, what could be shocking to many investors is that many dividend darlings paying juicy yields north of 5% have been consistently paying high yields for over a decade. Take dividend darling Annaly Capital Management (NYSE: NLY) . The company currently yields an astonishing 13.4%. That can't be sustainable, right? Well, past results on its yield might surprise investors. At this date in each of the past 10 years, Annaly's dividend has exceeded 3.4%, a total nearly double where the S&P 500's overall 1.8% yield sits at today. Take a gander at the continued outsized dividends Annaly has paid out on this day over the past 10 years!... more

12 Dividend Stocks You Must Own Regardless of Age

It is well known that asset allocation is the most fundamental aspect of financial planning. The investments of say, a sophomore in high school, a college graduate, a middle-aged couple with two children, or a retired couple with no dependents but is looking to leave behind a small fortune, should look very, very different from each other. By asset allocation I am referring to how your portfolio is divided into cash, bonds, stocks, possibly commodities, and eventually homes; each carrying a varying level of significance depending on your age and needs. Americans under 30 prefer to keep a lot in cash as the mainstream media has drilled the phrase disposable income into our heads as something that needs to be spent, since it's good for the economy. If this group's childhood was anything... more

5 High-Yielding Stocks With Low Beta and Improving ROE

Are you searching for stocks that will increase your portfolio’s income while reducing your exposure to systemic risk? If so, this may be an interesting starting point for your own analysis. To construct this list we looked for stocks with the following characteristics: Dividend yield above 2%. Beta between 0 to 0.5. Rising return on equity (ROE) for the recent quarter, on a year-over-year basis. In order to focus on quality improvements of the ROE, we performed a DuPont analysis on these names and focused on those candidates that experienced: Improving profit margin, i.e. higher Net Income/ Revenues. Improving asset turnover, i.e. higher Sales/Assets. Decreasing leverage ratio, i.e. lower Assets/Equity. Interactive Chart: Press Play to compare changes in analyst ratings over the... more

The Highest-Yielding Utilities Worth Your Time

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 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

11 Incredible Dividend Stocks: Bemis

Nobody said dividend investing had to be sexy -- nor do you have to fall in line behind the age-old dogma that only the largest corporations in the world pay out the best dividends. Sometimes the most impressive dividend growth can be found right under our noses, yet we're completely oblivious to it. It's for this reason that I've chosen to highlight a company whose broad product line litters our daily lives – and you've probably never even heard about it! The company's name is Bemis (NYSE: BMS) , and I suggest you get closely acquainted with this "no-name." The businessBemis may not be a household name, but the company probably has its handiwork scattered throughout your own home. Bemis manufactures and sells flexible packaging products and pressure-sensitive materials worldwide.... more

3 Rare High-Yield Securities That Yield Up To 9%

Sometimes the best dividend yields can be found by looking for stocks that few analysts follow. There are dozens of otherwise good quality companies out there which analysts simply don't talk about, either because the company is too small, too new or occupies a one-of-a-kind niche. Analysts don't cover these outlier stocks because their large institutional clients prefer investing in recognizable names that have high trading volume and address big markets (which attract lots of competitors). I decided to investigate the REIT (real-estate investment trust) sector for companies that occupy unique niches and don't command much attention from analysts. REITs are good for dividend investors in a number of ways, primarily because their unique structure requires them to pass along at least... more

Canadian Natural Resources' 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

This High-Yield Portfolio Will Beat the Market

Movers and shakersOf our stocks, the biggest mover in the portfolio over the past month was Frontier Communications, whose price fell 7.15%. I plan on using the stock's recent decline to add shares of Frontier Communications to the portfolio. The purchase will be made tomorrow (June 10), so those following the portfolio have time to take advantage at the same price. While the price has declined, the company is still on track in integrating and expanding the operations it acquired from Verizon last year. The company still generates massive amounts of free cash flow, allowing it to pay the interest on its debt and a sizable dividend which, with the decline in price, comes to a yield of more than 9%.... more

11 Incredible Dividend Stocks: Aflac

The businessEveryone knows the iconic Aflac duck, but far fewer people could tell you what the company actually does. Unlike your typical employer-provided health insurance plan with UnitedHealth Group (NYSE: UNH) or WellPoint (NYSE: WLP) , Aflac offers individually issued, supplementary health insurance that pays policyholders directly in cash when they get sick or injured. Aflac is the No. 1 company within this niche of the insurance world, and in Japan, where the company collects 70% of its revenue, Aflac insures 25% of households and employees at 89% of the companies on the Tokyo Stock Exchange. Company Aflac Dividend Yield 2.7% 5-Year Dividend Growth Rate 20% annually Payout Ratio 26% Has... more