The Best Dividend Opportunity You've Never Heard Of

Even with the big increase in popularity of some pretty esoteric dividend stocks, one class of investments remains largely untapped. But as more investors realize both the healthy dividends and growth potential of these investments, I don't think they'll stay under the radar too much longer. Below, I'll reveal some of these investments and explain why they're different from the run-of-the-mill dividend stock. Getting into some weird stuffUntil recently, most dividend investors stuck with pretty basic choices. Utilities and financial stocks (believe it or not) used to be tried-and-true sources of income; they didn't give you much growth, but you could count on getting a check every quarter.... more

11 Incredible Dividend Stocks

Most investors see dividends as a quaint concept like a bed and breakfast in the countryside, a horse-and-buggy ride through the city, or a pocket full of butterscotch suckers. They know that dividends are there, but they don't really take them seriously as a way to beat the market. And certainly companies aren't making it easy to be a dividend investor. Using data from Yale's Robert Shiller that goes back to 1900, my fellow Fool Morgan Housel has shown that the current dividend payout ratio -- that is, the amount of its profit that a company pays out as dividends -- is less than half of its long-term average.... more

Picking the Best Electric Utility Dividends for the Next 5 Years

Utility stocks are known to be the dividend kings of the market. Among the utility companies, electric utility companies are among the safest investments, offering regular dividends. These companies are subject to regulations, yet most of them have almost monopoly power in their region. While their business looks pretty simple with limited growth potential, the recent merger between Duke (DUK) and Progress Energy (PGN) is a perfect example showing the dynamic complexity in the sector. A single company operates several power plants, providing electricity through a variety of distribution channels with differentiated prices to different types of customers. There are mainly two driving forces for increased profits. First, is the increased demand for energy. Next is the effective use of... more

4 Top Yielding Natural Gas Utility Stocks

Natural gas has several benefits over oil, especially in the green area, as natural gas generates a lower carbon footprint. It also has a long history as a fuel; one of the original Dow Jones Industrial Average stocks from the 1800's is a natural gas distributor that is still trading today, Laclede Group Inc. (LG). Laclede trades at 14.5 times forward earnings and sports a yield of 4.4%.Many other natural gas utility companies pay fairly high yields. As a matter of fact, according to WallStreetNewsNetwork.com, over 20 gas utilities have yields ranging from 2% to over 7%. For example, Energy Transfer Partners L.P. (ETP) is a publicly traded limited partnership that processes, transports, and sells natural gas. The stock trades at 17.9 times forward earnings and pays a generous yield of... more

15 Rallying High Yield Stocks With Significant Discount to Target Price

All of the stocks mentioned below are trading at deep discounts to their average analyst target price (used as a proxy for fair value). In addition, all of these names give a high yield dividend (above 5%) and have been rallying above their 20, 50, and 200-day market average (MA). Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research. <p>Your browser does not support iframes.</p> Do you think these companies will continue to rally and reach their target price? Use the list below to start your own analysis. List sorted by potential upside. Costamare Inc. (CMRE): Shipping Industry. Market cap of $1.03B. Dividend Yield: 5.84%. The stock... more

Natural Selection In Dividend Portfolios

Investors should purchase stocks with the intention to hold on to them forever. They should spend time analyzing the stocks to purchase, fine tuning their strategies and diversifying their portfolios properly. However they should realize that things and conditions change. Sometimes the best decision investors could do is sell their stocks when changes occur. As a result, even a portfolio of carefully selected wide moat companies could have big turnover over a time period of several decades. Nevertheless, it is important to try and select only the best dividend stocks after a rigorous screening on such lists as the dividend achievers or the dividend champions. Investors do have to remain nimble and on top of things, as any changes could lead to portfolio turnover over time. The changes... more

4 Dividend Stocks Showing You the Money

Readers of the Income Investor newsletter can certainly appreciate that kind of thinking. Let's take a closer look at some of the companies that inched their payouts higher this past week. Let's start with Rockwell Automation (NYSE: ROK) . The industrial automation and information specialist is jacking up its quarterly dividend 21% to $0.425 a share.... more

The Case for Using a Dividend Reinvestment Plan

A well known investment vehicle for dividend investors is the dividend reinvestment plan (DRIP). It is debated frequently on Seeking Alpha, however, whether or not this is the best methodology for growing dividend portfolios. In this article we will look at the reasons why it is a sound strategy and good tool for investors.DRIP Characteristics Very low fees Automatic reinvesting of dividends Easy automatic investing / contributions Who Should Use A DRIPA DRIP is a great tool for are investors looking to be passive in their investing style but still build positions of individual stocks. Most individual investors use passive vehicles like 401(k) plans and because of the popularity of diversification, own baskets of stocks and/or mutual funds.For someone looking to get into specific stock... more

Why Playing With Ex-Dividend Dates Isn't Worth It

Can you play with an Ex-Dividend date? Is there a way to make a quick buck by trading the stock according to when it pays its dividend? Do you believe in elves and hobbits? Okay… maybe some people look like hobbits… so maybe playing with Ex-dividend dates work… Let’s take a look at this trading “strategy”. How Can You Make Money By Playing The Ex-Dividend Date I assume you probably are familiar with the Ex-Dividend date concept. So let’s take a look at an example on how you could possibly make money by playing with the Ex-Dividend date: Stock X trades at $10 and issues a $1 annual dividend paid quarterly (so $0.25 per quarter). On May 1st, Stock X announces its dividend payout to be distributed on May 25th. In order to receive the dividend, shareholders must own... more

What to Do When Natural Selection Happens to Dividend Portfolios

Investors should purchase stocks with the intention to hold on to them forever. They should spend time analyzing the stocks to purchase, fine tuning their strategies and diversifying their portfolios properly. However they should realize that things and conditions change. Sometimes the best decision investors could do is sell their stocks when changes occur. As a result, even a portfolio of carefully selected wide moat companies could have big turnover over a time period of several decades. Nevertheless, it is important to try and select only the best dividend stocks after a rigorous screening on such lists as the dividend achievers or the dividend champions. Investors do have to remain nimble and on top of things, as any changes could lead to portfolio turnover over time.The changes that... more