1 Special Dividend Opportunity
Vodafone currently offers a 4.7% yield, a solid dividend from a telecom blue chip. But it looks as if there's plenty of room for upside on that dividend, which should drive the stock higher. The company pays out 55% of its free cash flow but just 39% of its net income. But in this case net income better measures the company's profitability. Vodafone consolidates income from its 45% stake in Verizon Wireless but doesn't actually receive cash from the joint venture with Verizon (NYSE: VZ ) . That could be about to change. Verizon Wireless has nearly paid down its debt, meaning the JV can pay out dividends to its co-owners. Many have speculated that Verizon needs the cash for the build-out of operations in the U.S. and therefore would have the venture turn on the dividend spigot. It's this... more
High Yield Stocks Raising Dividends
As a dividend growth investor I purchase stocks which are attractively valued and which have the business characteristics to keep raising distributions over time. Procter & Gamble is a perfect example of a dividend growth stock, after rewarding its shareholders with its 55th consecutive annual dividend increase. The Procter & Gamble Company (PG) provides consumer packaged goods in the United States and internationally. The company raised its dividend by % to 52.50 cents/share. This marked the 55th consecutive annual dividend increase for this dividend king. There are only eleven companies which have managed to raise distributions for over half a century. The ten year dividend growth rate for Procter & Gamble is 10.90%. Yield: 3.40%. Check my analysis of the stock. One sector which... 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 Enterprise Products Partners (NYSE: EPD). The provider of midstream energy services continues to fuel its chunky yield. Enterprise's new quarterly rate of $0.5975 a share is simply a fractional improvement, but it has now been jacking up its distributions for 27 quarters in a row.... more
Earn Huge Dividends -- and Shortchange Uncle Sam
Master Limited Partnerships (MLPs) have a powerful tax advantage that most investors don't understand. If used properly, investors can generate large amounts of income while deferring taxes, as long as the investor doesn't sell the MLP. Read along, and I'll explain how you can use this advantage to reap income. The secret of MLPs An MLP is a legal structure that generally owns pipelines, resources, refineries, terminals, or other large assets related to natural resources, commodities, or real estate. Profit flows straight through the business untaxed, and gets paid to shareholders -- here known as unitholders -- as distributions from the business's cash flow. Unitholders are then responsible for paying their share of the partnership's taxes (even if the MLP is held in an IRA, which is... more
March 2011 Pocket Change Dividend Portfolio: Added Wal-Mart and Conoco-Philips
The Pocket Change Portfolio (PCP) was first introduced on September 13, 2008 as a real money dividend income portfolio funded by the "pocket change" earned from my various online endeavors. Each month I report on the portfolio's progress and update its holdings. Dividends Received Total dividends received during the month were $275.95, consisting of: $16.34 United Technologies Corp. (UTX) $18.85 Emerson Electric Co. (EMR) $52.92 Johnson & Johnson (JNJ) $15.60 Consolidated Edison Inc. (ED) $20.74 McDonald's Corp. (MCD) $57.60 Harleysville Group Inc. (HGIC) $9.20 Owens & Minor Inc. (OMI) $84.70 Universal Health Realty Income Trust (UHT) Securities Purchased The following securities... more
The Fastest-Growing Dividend Aristocrats
When searching for great dividend stocks, it makes a lot of sense to start with companies that have been playing the dividend game the longest. Standard & Poor's has culled the dividend winners from the also-rans in a list it calls the "Dividend Aristocrats." Let's examine the top 20 fastest-growing yields among these Dividend Aristocrats. For context, I've also included their trailing yield.... more
My Diversified, High-Yield Portfolio
I have created a diversified, high-yielding portfolio comprised of stocks, preferred stocks, ETFs, and closed-end funds. This portfolio has a current yield of 8.5% and is constructed to provide nice risk-adjusted returns. The performance of this portfolio will be updated every quarter going forward, and its total return will be compared to that of the S&P 500 (SPY). All of the holdings are detailed below. Portfolio Summary This high-yielding, diversified portfolio features 19 different holdings: 1. AESAY.PK - Aes Tiete SA - Brazilian utility company - AES owns and operates ten hydro power plants in the state of Sao Paulo. This recent Seeking Alpha article highlights the motivation for owning this investment: The economy is projected to grow by 5.5% this year. Currently,... more
High Yield Stocks Raising Dividends
As a dividend growth investor I purchase stocks which are attractively valued and which have the business characteristics to keep raising distributions over time. Procter & Gamble (PG) is a perfect example of a dividend growth stock, after rewarding its shareholders with its 55th consecutive annual dividend increase.The Procter & Gamble Company provides consumer packaged goods in the United States and internationally. The company raised its dividend by % to 52.50 cents/share. This marked the 55th consecutive annual dividend increase for this dividend king. There are only eleven companies which have managed to raise distributions for over half a century. The ten year dividend growth rate for Procter & Gamble is 10.90%. Yield: 3.40%. Check my analysis of the stock.One sector which... more
3 Stocks That a Dividend Investor Could Love
The market is starting to look a little overbought and everyone is expecting a sell off. Sometimes situations like these turn out to be self fulfilling prophecies. When everyone is expecting a pullback, it can lead to investors selling shares that they would have otherwise held on to. One of the ways that investors can protect themselves from a stock market drop is by owning some income plays. High yielding dividend stocks can provide you with income while you ride out a market slump. Here are 3 stocks that any dividend investor would like. Duke Energy (DUK) Duke is like many of the other companies operating in the utilities industry. The company has a very slow growth rate and a nice dividend yield. Duke Energy is paying out a 5.4% yield which is comparable to Progress Energy (PGN),... more
Three Dividend Stocks for Cautious Investors That Are Energy Growth Plays Too
If you're a little hesitant to invest more money in stocks right now, that's understandable. The uncertain state of the U.S. economy, the nation's 14.7 million job shortage, and renewed concerns about Europe's government debt are putting some big question marks next to the U.S. and European recoveries. But for those looking to cautiously commit new money to equities, consider stocks that offer a bit more safety because they pay decent dividends. Here are three in the energy sector: BP Prudhoe Bay Royalty Trust: A Dividend Star If you're looking for a low-risk dividend play, BP Prudhoe Bay Royalty Trust (BPT), may be for you. The trust distributes royalties on 16.4% of the first 90,000 barrels per day of average daily production per quarter from BP's share of the Prudhoe Bay... more