Gabelli Dividend and Income Trust: A Discounted CEF Poised for Growth

The Gabelli Dividend and Income Trust (GDV) emphasizes total return, including capital appreciation and dividends. GDV is managed by a team led by Mario Gabelli. The fund invests in income and dividend producing assets. Normally at least 50% of the fund is invested in dividend paying equities. The fund takes a global approach, as it may invest up to 35% of total assets in non-U.S. securities. GDV currently pays a monthly distribution of $0.07 per share which equates to $0.84 annually. The price is very attractive right now, as the fund trades at a 13% discount to NAV. Gabelli and team primarily select large-cap value stocks for the fund. Currently more than 65% of assets are invested in large and giant-cap equities. 75% of assets are invested in domestic equities, 17% in foreign equities,... more

5 Dividend Stocks Worth Holding Indefinitely

Has someone near and dear to you responded with a ‘I was only trying to help’ after royally messing something up? Have you ever tinkered with a computer, smart phone or something else only to learn it no longer works and you are not sure how to fix it? Our dividend stock investments can suffer the same fate if we provide them with too much of the wrong type of attention. Here are some things to remember to keep your income investments on the straight and narrow: Avoid Irrelevant Information. I tire of hearing the stock reports that sound like a horse race, ‘After early mixed results, the Dow edged up two points today despite a government report indicating unemployment is running at two-tenths of a percent above previous estimates…’. Will any of this have meaning in 10... more

12 Financial Stocks Likely to Raise Dividends This Year

We took a cue from the Fed. These financials have the cash flow and balance sheets to clear the way for higher dividend payments in 2011. Some dividends are set to head much higher. Here is what we found: Huntington Bancshares (HBAN): A bank with Midwestern roots, Huntington successfully repaid the $1.4 billion dollars of preferred shares held by the government as a part of TARP. The most recent stress tests yielded positive results, reinforcing the view that Huntington has successfully navigated its way back from the brink and set itself off for steady growth going forward. Currently, HBAN is trading at $6.6/share with a capitalization of $5.7 billion and forward P/E of 9.5. EPS growth is targeted at just over 103% while Stifel Nicolaus reiterated a buy rating and set a target between... more

Scorecard for S&P 500's 10 Highest Dividend Yield Stocks

With interest rates near zero, a growing number of investors craving for dividend income, and the economic outlook for slow growth, it is no surprise we are seeing incredible demand for high-yield stocks. Following are the 10 highest dividend yield blue chip stocks from the S&P 500: 10 Highest-Yielding Stocks in the S&P 500 Name (Symbol) Sector Forward P/E Yield Frontier Communications (FTR) Telecommunications 25 9.5% Windstream Corporation (WIN) Telecommunications 15 7.9% ... more

5 Japanese ADRs With Strong Dividends

Everyone from Warren Buffett to Barron’s has come out in the past week to say that Japanese stocks are cheap and now is the time to buy. Heck, even Dr. Doom himself, Marc Faber, has come out and called Japanese stocks a “lifetime buying opportunity.” Most commentators are referring to Japanese small cap stocks - and not necessarily large cap and more international-focused Japanese companies - as being especially cheap. A lot of money has flowed into Japanese ETFs lately, and that’s not necessarily the best bet. If you’re too afraid to look at Japanese small caps, or if you trade through a discount broker and don’t have the ability to buy shares on the Nikkei, you should look at American Depository Receipts (ADRs) for Japanese companies. An ADR trades just like a stock on an... more

Improving Gold Equity Outlook May Trigger Dividend Revaluations

Gold equity investors have been cheered by recent company promises to improve dividends. The pledges have been underwritten by thickening margins, especially over the last 18 months, as gold prices outpaced input costs for the first time in several years. Being in the business of literally pulling cash out of the ground means that precious metal miners must pay higher and high dividends to maintain their claim as an option on bullion prices that is more attractive than merely physical gold.To halt the filching of market share by exchange-traded gold, equities have no option but to return to an era of princely dividends; one reminiscent of what South African gold stocks yielded in the 1970s. There is evidence that the new mood on dividends is no mere flash in the pan. We foresee... more

Altria: A Cash Cow With a Generous Dividend Policy

For those of you who haven’t noticed, Altria Group, Inc. (MO) has been quietly beating the S&P 500 over the past few years. Much has already been written about the virtues of its generous and ever increasing dividend. However, as a business valuation professional, I am always interested in understanding what the financial statements can tell us about the value drivers of a business. So I decided to do a little research to see what I could learn. One useful analytical tool that is frequently used in the valuation world is the DuPont Formula. The DuPont Formula is simple way of breaking down a company’s return on equity (ROE) into its various components: profitability, asset management and leverage. ROE is generally viewed as an important indicator of how effectively a company generates... more

Cisco's Dividend: A Missed Opportunity

I was disappointed by the announcement on Friday that Cisco (CSCO) would be paying a paltry $0.06 dividend that might not even continue perpetually. I expected a solid dividend ($0.10-0.15) to help assuage investor fears that Cisco is a has-been and help ensure significant value from their cash generation will be returned to shareholders. Also, investors need assurance now more than ever that Cisco will have their sights set on investor value and not helter-skelter acquisitions with growth being the only consideration. A major dividend could have been a catalyst to spark a rally from $17 to a more reasonable value.Frank Calderoni, Executive Vice President & Chief Financial Officer of Cisco,... more

Why Cisco's Dividend Makes It a Must-Own Stock

Yes, they can (own the stock)When Citigroup eliminated its dividend in 2009, many mutual fund managers and other institutional investors were required to sell the stock. That's because their investment policy only permitted investments in dividend-paying stocks. The mandatory rush for the exits when a dividend is eliminated can really punish a stock's price. In contrast, cutting the dividend to $0.01 may have spooked many investors out of Citigroup stock, but the penny dividend didn't force them to sell. They could even decide to buy more. Any dividend -- even if it's just $0.01 -- opens up a whole new class of potential buyers for a stock ... and it's not just value investors.... more

The Future Just Got Brighter for These 3 Dividend Stocks

The market is a pretty wild place right now. It’s a swing-trading dream. The intra-day volatility has popped and dropped according to the VIX index, but it’s anyone’s guess what tomorrow holds.Some people are loading up on the high-profile and darling stocks that have pulled back in price. Lots of shares of Apple (AAPL) have exchanged hands between $330 - $340, Netflix (NFLX) dipped down briefly to $190 more than a week ago before exerting its high-growth muscle, and bigger dividend stocks like Coke (KO) had a bounce off the $61.50 range. Other stocks such as Baidu (BIDU) didn’t seem as affected, and investors were not rewarded with a pull-back entry. Other investors are hesitant to jump aboard these stocks wondering if the worst of the Japan incident is not fully known and will... more