5 Cheap Technology Titans Offering Substantial Dividends

Technology stocks are among the most interesting stocks in the market. On the one hand, there are high fliers such as Amazon (AMZN), Open Table (OPEN), Salesforce (CRM), Netflix (NFLX) that are trading way above their intrinsic value. Those companies enjoy superb P/E ratios of 81.52, 131.23, 426.44, and 78.65, respectively. On the other hand, there are giants in the industry, paying substantial dividends, yet priced way-below their fair value. Here is an analysis of 5 dirt-cheap technology stocks offering substantial dividends: Intel Corporation (INTC) is a global technology company and the world’s largest semiconductor chip maker based on revenue. Intel was founded in 1968, and is based in Santa Clara, USA. The market cap of INTC is $115.21 billion. The P/E ratio stands at 10.11, and... more

6 High Yielding Stocks With Risky Dividends

Investing for income has become extremely popular among a variety of investors in the past few years. Ultra low bond yields in both government and corporate issues have made dividend income an increasingly important component of many portfolios. With rates unlikely to be increase to historical norms in the near future, especially considering the ongoing economic troubles in both Europe and the U.S., many are relying on dividend yields to supplement anemic bonds more and more. However, while many dividend yields are ultra safe, some look as though they are unsustainable over the long-term, unless of course the firm is able to grow into its outsized payout rate. Below, I take a closer look at six companies on the S&P 500 that are yielding more than 5% but also have more debt than equity and... more

7 Rural Telecoms That Pay Big Dividends

With all the excitement about smart phones these days, I bet that telephone companies that mostly provide old-fashioned landline services aren’t on your radar screen. They’re certainly not sexy-unless, like me, you find collecting steady 5% to 9% dividend yields an exciting idea. I’m referring to phone companies that provide local and long distance landline telephone services mostly to rural areas with low population densities. Most also offer dial-up and broadband Internet services and some also offer TV and wireless phone services. Major phone companies like AT&T (T) and Verizon (VZ) view the traditional landline business with disdain because many customers are switching entirely to wireless phones. In fact, on average, the number of landline connections is shrinking by around 10%... more

7 Diversified Dividend Picks for the Next 5 Years

While stocks might look risky in the short-term, they offer the highest yield in the long-run, says Prof. Jeremy Siegel, of the University of Pennsylvania, Wharton School of Business. In his book Stocks for the Long-Run, Siegel suggests that stocks offer more stable real returns than bonds in the long run, thanks to the mean reversion effect: Remarkable stability of long-term real returns is a characteristic of mean reversion, a property of a variable to offset its short-term fluctuations so as to produce far more stable long-term returns. His book also offers many different ways for choosing the best stocks for the cheapest price. One of the interesting methods suggested uses a combination of three metrics: A rule of thumb for stock valuation that is found on Wall Street... more

7 Dividend Paying Stocks Near 52 Week Lows

Dividends are commonly viewed as an important signal of a company's fiscal strength and of management's outlook. If management is optimistic, they may increase the dividend payout ratio past that of the industry peers. If they are pessimistic, management may constrain the dividend growth or even cut the dividend.Here is a list of dividend paying stocks trading near 52 week lows. Investors should take a closer look at these companies. Dividend yields imply that they are financially healthy but stock price weakness implies that the market believes the companies' prospects are muted in the near term.Gap Inc (GPS)Current Price: $18.0952 Week Low: $16.62Dividend Yield: 2.3%The iconic American retail chain has struggled for years to return to its former glory. In the 1990s, the company... more

Dividend Climate Change: What Happens When Interest Rates Rise?

The past few decades have provided excellent opportunities for dividend investors, but that could change. It may not be next week, next month, or even next year, but what happens when interest rates rise? I was reviewing the research Yale University Professor Robert Shiller has compiled on historical stock market data, specifically how dividend yields compared to interest rates in two time periods. I looked at the 1970s when both short and long-term interest rates soared to levels hard to even envision, and the period from 1985 on. First, here’s a look at dividend yields and interest rates from 1965 to 1985. I’ve included both the ten-year bond yield, and the rate for six-month CDs. It would have seemed mighty tempting to ditch stocks for CDs back when you could get double-digit... more

Searching for the World's Best Dividend Portfolio

Jim Royal of the Motley Fool came out with what he called the World's best dividend portfolio. That is quite a claim and is, perhaps, why many long term investors worry about on whom they should rely for advice. He claimed he is going to put $10,000 of his own portfolio to work in 10 income-producing stocks, which he later reveals. He then claims that these companies offer yields that are at least double that of the average S&P stock. His world champs are Company Trailing Yield 5-Year Dividend Growth Southern Company (NYSE: SO ) 4.7% 4.1% Exelon (NYSE: EXC ) 5.0% 5.6% National Grid (NGG) 6.0% 6.9% Philip Morris International (NYSE: PM ) 3.6% 9.6%* Annaly Capital (NYSE: NLY ) 13.7% 30.2% ... more

The 10 Highest-Yielding Mortgage REITs

Typically, mortgage REITs borrow short-term funds and buy long-dated mortgage-backed securities. The companies then pocket the interest-rate spread. Some companies invest in safer, less lucrative government-backed securities, while others invest in more risky offerings in exchange for a greater spread. In whatever case, the huge dividend yields you see below are the result of using leverage to boost returns. What are the risks of the mortgage REIT space? These players are subject to interest-rate risks, of course, but their high leverage exacerbates -- for good or ill -- any move in interest rates. So leverage and interest rates are good things to keep an eye on in this space. In particular, pay attention to a company's interest-rate spread, which is reported in its quarterly filings.... more

Interpublic's Good Fortune Pays Dividends

It's alive! The company might not have survived its recent perils if it didn't have enough cash on hand. As fellow Fool Jim Royal has observed in looking at his Cash King metric, Interpublic has made steady progress over the past five years in generating the hard cash it needs, bringing its free cash flow-to-revenue ratio back in line with major competitors WPP (Nasdaq: WPPGY) and Omnicom (NYSE: OMC). After an encouraging 2010, during which net income almost doubled, the company, eager to show off its renewed vigor, used $480 million to reduce debt and buy back a substantial portion of its convertible preferred stock. The board of directors has also authorized a buyback of common shares of up to $300 million. On top of that, Interpublic has declared a quarterly dividend of $0.06 per... more

Portfoliomatters: Where's The Yield? (Guest Post)

Income-oriented investors have yet another reason to be upset with the bond markets. Junk bond yields fell to a record low a few days ago and are staying near those levels. As of the evening of Wednesday, May 18, the Barclays U.S. Corporate High Yield index yielded a mere 6.68%, which isn't much when you consider the risk of default. These low yields are just one sign of the bond market's cheery mood. Corporations are finding plenty of buyers for their debt, and many offerings have been completed this week. Among the investment-grade companies selling bonds are Google (GOOG), Norfolk Southern (NSC) and Walt Disney (DIS). Included in this week's near-record level of junk bond offerings is beleaguered Chrysler, which is refinancing its loan package. Taking advantage of the low... more