Another Reason to Love Costco

Last December, I bought shares of Costco (Nasdaq: COST) for my Rising Star portfolio. A major part of my investing thesis was that Costco is a gold standard company that treats its various stakeholders well. Yesterday, the warehouse retailer further confirmed that rosy opinion by announcing a dividend hike and share buyback. Some people perceive dividends as votes of confidence. One writer for Investors Business Daily recently interpreted "bold" dividend hikes from the likes of Wynn Resorts (Nasdaq: WYNN), PNC Financial Services (NYSE: PNC) , and Ingersoll-Rand (NYSE: IR) as signs of an upbeat economic outlook. That may be true, but dividends and buybacks don't guarantee impending financial success.... more

3 Dividend Stocks for Your Watchlist

We can help you keep tabs on your companies with MyWatchlist.com, our free, personalized stock-tracking service. Here are three dividend stocks for your watchlist. 1. Cheniere Energy Partners LP (AMEX: CQP) Cheniere Energy Partners is a master limited partnership (MLP) with a distribution yield of 9% and is a subsidiary of Cheniere Energy (NYSE: LNG). MLPs have serious tax advantages for long term shareholders. The partnership owns and operates the Sabine Pass liquefied natural gas (LNG) receiving terminal in Louisiana. The terminal has a total send-out capacity of 4.0 billion cubic feed (Bcf) per day and five LNG storage tanks with a total 16.8 Bcf of storage capacity, making it the largest receiving terminal by regasification capacity in the world. Cheniere Energy still holds a 6.7%... more

5 Solid Dividend Stocks Trading Below Book Value

While many investors are chasing high risk opportunities, it still makes sense to keep investing in value stocks that pay dividends. These well known, and not so well known companies are trading below their stated book values. In general, these names offer earnings growth, reasonable PE ratios and appear to be undervalued. With markets remaining volatile, it makes sense to stay focused on companies that are trading at undervalued levels. If we see a market correction, I expect that these book value stock bargains will outperform. Here are the companies: Barclays PLC (BCS) shares are trading at $19.16. Barclays is a leading banking and financial services company, based in the United Kingdom. The 50 day moving average is $19.60 and the 200 day moving average is $18.74. The 52 week range... more

The Most Promising Dividends in Medical Appliances and Equipment

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

Looking Beyond Hudson City's Losses and Dividend Cut

The quarter in detail The loss for this quarter was almost inevitable because of the recent one-time balance sheet restructuring charges taken by the bank. This restructuring reduced the bank's after-tax earnings by $649.3 million. Net interest income decreased to $256.4 million in this quarter from $331.1 million in the corresponding quarter last year. The losses and dividend cut were quite apparent and were widely expected, though. Now, I would like to pay attention to some metrics that remained upbeat and project a positive outlook.... more

Highest Yielding Dividend Stocks of the S&P 500

The S&P 500 is one of the most followed stock market index in the world. Mutual fund managers benchmark their returns against it, yet somehow studies show that the vast majority underperforms the index in any any given year. There are many ways to invest in the S&P 500, including mutual funds (VFINX), exchange traded funds (SPY) or even stock index futures. I benchmark my dividend income against the S&P 500. Many of the best dividend stocks in the world have a substantial weight in this important stock market barometer. With its average yield of 1.70% however, many dividend investors choose to ignore the index, and instead focus on its components. It is interesting to note that 386 companies included in the index pay dividends. The average yield on those is 2.30%. Below I have highlighted... more

12 Dividend Stocks That Will Reward Your Patients by Helping You Build Wealth

For most people fortunate enough to be born in the U.S., or any other industrialized country, they have access to the two main ingredients to achieve financial success: 1. Opportunity and 2. Time. Unfortunately, very few people are able to take advantage of the situation enough to even build a secure retirement. Here are some of the reasons people fail, and what you can do to not fall into that group...Understand The GoalThere are two main subsets of the population who have never given serious consideration to their financial future. The first group includes the altruistic dreamers that are trying to build a better world for society, and the second group is their counterpart, those consumed with living for today. If financial success was never your goal, the inability to achieve it is... more

Dividend Scan: NOC, MCO, COST, DD, STBA, ASBC, IBM, PH, BGG

As the U.S. market slowly recovered from the morning loss, several companies declared their quarterly dividends. Some notable dividend payers are discussed here. Northrop Grumman Corp. (NYSE: NOC) raised its quarterly dividend by 6.4 percent to 50 cents per share. Shares of the company gained 0.27 percent, or 17 cents, to trade at $62.66. Moody's Corp. (NYSE: MCO) raised its quarterly dividend to 14 cents per share. Shares of the company jumped 7.55 percent, or $2.71, to trade at $38.62. Costco Wholesale Corp. (Nasdaq: COST) shares added 1.18 percent, or 96 cents, to trade at $80.74 as the company raised its quarterly dividend by 17 percent to 24 cents per share from 20.5 cents. The dividend is payable on May 27, 2011 to shareholders of record on May 13, 2011. EI DuPont de... more

Are You Patient Enough To Be Wealthy? These 12 Dividend Stocks Will Help You Wait

For most people fortunate enough to be born in the U.S., or any other industrialized country, they have access to the two main ingredients to achieve financial success: 1. Opportunity and 2. Time. Unfortunately, very few people are able to take advantage of the situation enough to even build a secure retirement. Here are some of the reasons people fail, and what you can do to not fall into that group... Understand The Goal There are two main subsets of the population have never given serious consideration to their financial future. The first group includes the altruistic dreamers that are trying to build a better world for society, and the second group is their counterpart, those consumed with living for today. If financial success was never your goal, the inability to achieve it... more

Highest Yielding Dividend Stocks Of The S&P 500

The S&P 500 is one of the most followed stock market index in the world. Mutual fund managers benchmark their returns against it, yet somehow studies show that the vast majority underperforms the index in any any given year. There are many ways to invest in the S&P 500, including mutual funds (VFINX), exchange traded funds (SPY) or even stock index futures. I benchmark my dividend income against the S&P 500. Many of the best dividend stocks in the world have a substantial weight in this important stock market barometer. With its average yield of 1.70% however, many dividend investors choose to ignore the index, and instead focus on its components. It is interesting to note that 386 companies included in the index pay dividends. The average yield on those is 2.30%. Below I have... more