Smart Money Loves These Dividend Yielding Tech Stocks
The American economy is going through a soft patch. Unemployment is stubbornly high, headline inflation numbers are rising and the stock market declined by more than 7% since early May. One of the most important problems facing the U.S. economy is the unsustainably high budget deficits. We don’t think long-term interest rates will stay low for a very long time. We believe treasury bond investors can do much better by switching to dividend yielding stocks than the 10-year treasuries that yield a paltry 3%.Dividend yielding tech stocks is definitely one attractive alternative. We compiled a list of dividend yielding technology stocks (the sector classifications are sourced from Finviz) and ranked them based on the number of hedge funds invested in each stock. We think we can follow the... more
Honeywell International'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
Let Dividends Help You Crush the Market
In his article, Zweig names some names, and I'm guessing it had to be pretty painful to be on the receiving end of that data-gotcha pantsing. But I won't repeat the names here because, frankly, I was nearly taken by the same thing when writing this article a month ago. I think it's a fairly easy issue to overlook because on a day-to-day basis we talk constantly about the S&P 500 index -- the very measure that Zweig highlights as taking no account of dividends. Rare is the day when you hear anybody mention the S&P 500 Total Returns, which is the measure that does take dividends into account.... more
Nordson'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
Teck 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 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
8 Dividend Stocks Yielding Over 3%, With Tiny Payout Ratios
Looking for a stock that will grow its dividend in the future and pay you handsomely now? The yield is not the only thing you need to focus on. You will also need to check the stock's Free Cash Flow Payout. This tells you how much cash the stock has left over after paying the normal operating expenses. This is the cash used to pay for acquisitions, debt obligations and dividends! This week I am screening my database for stocks with a free cash flow payout below 35% and a dividend yield over 3%. The formula for Free Cash Flow Payout is simply Annual Dividend Per Share divided by Free Cash Flow Per Share. Free Cash Flow is Operating Cash Flow less normal capital expenditures (normally the first line in the investing section). Obviously, this is not a buy list but a potential idea list... more
7 High-Yield Growth Stocks You Might Have Missed
We took a look at 7 companies that are offering attractive dividends. These companies are in good positions to see growth and will help any portfolio see exceptional yields. RLI Corporation (RLI): RLI Corp. is a specialty insurance provider operating in 3 main segments. The 3 segments include casualty, property, and surety. The casualty segment specializes in providing general liability coverage to commercial issuers. The property segment offers coverage of property and also provides unique insurance such as natural disaster and fire coverage. The surety segment offers bonds and writes commercial and small contract surety coverage. It also offers fidelity and crime coverage for certain financial institutions. RLI has locations in all 50 states and has been profitable for the... more
8 Dividend Stocks Yielding Over 3%, With Tiny Payout Ratios
Looking for a stock that will grow its dividend in the future and pay you handsomely now? The yield is not the only thing you need to focus on. You will also need to check the stock's Free Cash Flow Payout. This tells you how much cash the stock has left over after paying the normal operating expenses. This is the cash used to pay for acquisitions, debt obligations and dividends. This week I am screening my database for stocks with a free cash flow payout below 35% and a dividend yield over 3%. The formula for Free Cash Flow Payout is simply Annual Dividend Per Share divided by Free Cash Flow Per Share. Free Cash Flow is Operating Cash Flow less normal capital expenditures (normally the first line in the investing section). Obviously, this is not a buy list but a potential idea list that... more
3 Yield Ideas: Pitney Bowes, Chimera Investment, Hancock Bank Opportunity Fund
Let’s try to make a good trade into this edition’s three lil’ yield piggies…“Mail of the species…”Pitney Bowes, Inc. (PBI)Recent Price: 22.80P/E: 15.64Current Yield: 6.48%The SkinnyYes….this is a rerun. PBI is probably one our perennial favorites here at Yieldpig. Whenever the stock pulls back to where it yields better than 6%, it’s a good opportunity. While regular mail may be viewed as the buggy whip of communication, PBI is still the biggest and baddest in the mail sorting and machine business. They’re also focusing their efforts on Volly, their new cloud product. It only makes sense that they can capitalize on the penetration they’ve established. Stock looks cheap at 15.6x’s trailing earnings and 10.01x’s forward.The DangerQ1 earnings were a bit... more
6 Banks That Raised Dividends While Reducing Payout Ratios
The dividend payout ratio is often an important factor when considering dividend-paying investments. The ratio measures the size of a dividend payment compared to the company's net income. A higher dividend payout ratio leaves a lower percentage of total income within the company. This means that while the owners are receiving income, the company’s ability to grow may be hampered by a lack of income to reinvest. Moreover, where the payout is too high, it may indicate that the dividend is too high and in danger of being reduced. Lower dividend payout ratios are often found in companies that prefer to reinvest their income into the business. This reinvestment if sensibly performed in order to produce growth will hopefully, eventually increase income. That increased income could then... more