Why Dividend Investing Is Here to Stay
Bring on the dividendsIn its quarterly look at dividend investing, Standard & Poor's found that dividends are on the rise in a major way. A whopping 117 companies -- nearly a quarter of the S&P 500 -- increased or started paying dividends. That's a 50% increase over the number of companies raising dividends during the first quarter of 2010. All told, dividend payments during the quarter rose by a record $16.6 billion. Behind those statistics are a number of interesting trends that reflect a paradigm shift in the way that companies manage their excess cash flow. For instance:... more
Dividend Scan: SVT, TK, CWH, JWN, RPM, GOV, RIG
As the US market continued to trade in green, several companies declared their future dividend plans. Some notable dividend payers are discussed here. Servotronics, Inc. (AMEX: SVT) declared a quarterly cash dividend of 15 cents per share, payable on May 20, 2011 to shareholders of record on April 29, 2011. However, shares of the company were down 2.27 percent or 20 cents to $8.53. Teekay Corp. (NYSE: TK) shares lost 0.16 percent or 6 cents to $37.11 despite declaring a cash dividend of $0.36125 per share. The dividend is payable on April 29, 2011 to shareholders of record on April 15, 2011. CommonWealth REIT (NYSE: CWH) declared a regular quarterly common dividend of 50 cents per share, payable on May 24, 2011 to shareholders of record on April 21, 2011. Shares of the company... more
First-Quarter Dividend Champions
After poring through countless reports in the past three months, I can honestly say that the following seven companies are my first-quarter dividend champions. Stanley Black & Decker (NYSE: SWK ) I'm not handing out any bonus points here, as every company on this list did remarkably well, but Stanley Black & Decker deserves an A+ for the quarter. After merging two separate businesses together last year -- Stanley Works and Black & Decker -- the combined savings from the merger and the significant reduction in retail exposure have turned the company into a beast.... more
Top 5 Healthcare Companies Paying Excellent Dividends
The healthcare sector has always been one of the most promising sectors, as new healthcare services are in high demand. Many investors prefer investing in the healthcare sector due to high profitability in the business. In recent years, this sector has had higher returns than any other sector that are followed by S&P. Therefore, w e decided to screen for the top five healthcare companies with substantial dividends and a maximum P/E ratio of 20. All of the following companies offered a minimum 3% dividend yield and have a minimum market capitalization of $300 million. Data is derived from finviz . While there are hundreds of healthcare firms listed in NYSE, only the following healthcare utilities fit into this criteria: Abbott Laboratories (ABT): Engaging in discovering,... more
3 New Mega-Trends to Brace For in Q2: Coal, Dividend Yields and Shorted Oil Operators
We witnessed a 200,000 plus contract position initiated recently in S&P 500 ETF (SPY) puts around 60 cents apiece. This put buyer was taking out what we think is reasonably priced insurance on the market through April 15, 2011 expiration of these contracts. With earnings season right around the corner after a strong rebound to February 2011 highs, we think the caution may be warranted. The insurance premium was around $12 million. Earnings misses and upside surprises may reveal a mixed bag. We reviewed all Dow Jones 30 stock earnings here and here. Volatility has fallen sharply following the sharp rise in the VIX (^VIX) and its iPath Short-Term Futures ETN (VXX) to lower levels. If earnings come out strong, deterioration in the VIX and especially the VXX should continue. Forward month... more
Top 8 Gas Utilities Paying Excellent Dividends
There is a lot of speculation about a renaissance in the natural gas sector. Natural gas can be an excellent candidate to do the work that was once done by nuclear power. In the aftermath of Japan's nuclear disaster, demand for gas utilities might get quite high. Therefore, we decided to screen for the top eight gas utilities with substantial dividends, and a maximum P/E ratio of 20. All of the following companies offered a minimum 4% dividend yield in 2010. Data is derived from finviz . While there are hundreds of gas companies listed on the NYSE, only the following large cap gas utilities fit into this criteria: AGL Resources Inc. ( AGL ) : As an energy services holding company, AGL is in the business of distributing natural gas in... more
12 Favorite Oil & Natural Gas Dividend Stocks
We took a look to find the dividend giants in the energy space. Here’s are the oil and natural stocks we uncovered. BP p.l.c. (BP) : BP p.l.c. is still recovering from the April 2010, oil spill, reporting profit and operating margins in the negatives at -1.25% and -4.58%, respectively. However, the company is set to acquire major interest in Companhia Nacional de Açúcar e Ãlcool (CNAA) , which will be BP’s largest deal in alternative energy. BP has a forward P/E if 6.87 and sports a beta of 1.13. Click here to see the most recent updates on BP’s oil and gas drilling permits, which could significantly affect this stock’s price. The stock yields 3.8%. ConocoPhillips (COP): ... more
14 Dividend Stocks With Growing Yields and Low P/E Ratios
In our recent study we have shown that the average return of high dividend yielding stocks was 13.04% between 1927 and 2009. The dividend stocks beat the overall market by an average of 1.36% per year during this period. We think that these are risky times for fixed income investors. Ten-year treasuries yield less than 3.5% and the Federal Reserve is pursuing a highly inflationary monetary policy. Legendary investors Warren Buffett , George Soros , and Jim Rogers already voiced their concerns about the Fed’s policy. Warren Buffett thinks investing in long-term bonds is a bad idea. Jim Rogers is certain that commodities will benefit no matter what happens in the world economy. Ray Dalio , the owner of the world’s biggest hedge fund, recommended... more
Dividend Stocks You Can Depend On
Why you need dividends nowBefore we get to that, though, you need to understand why dividend stocks are so popular and so powerful right now. The biggest reason is that in the quest for income, investors have fewer attractive alternatives than ever. In particular, take a look at how little income some of the most popular income-producing investments earn right now:... more
10 by 10: The Interaction of Dividend Yield and Growth
One of the most-referenced articles I have published is the original 10 by 10 method for understanding the interplay between dividend yield and dividend growth. I thought it would be good to update that article, introduce the concept to a new generation of dividend investors, and add a couple of new features. There is a lot of discussion about the relative merits of high or low initial dividend yields (IY) compared to high or low dividend growth rates (DGR). Often this discussion comes up when someone says that he or she wants to find a “Dividend Champion of the Future”. The person is willing to accept a low initial yield if the company is relatively young and is raising its dividend very fast. At the opposite end of the spectrum, other investors state that they want high yields now... more