4 Diverse ETFs With Big Yields

Yield is a vital part of any long-term portfolio. It provides consistent income whether stock prices are rising or falling. It often provides a "floor" to stock prices, as investors swoop into a falling stock when the yield becomes attractive. It seems since the financial crisis, investors have come back to the realization they need both yield and growth. For this article, I have identified four high-yield exchange traded funds that invest in a broad array of asset classes. For the purpose of the article, I excluded fixed income and REIT ETF's. One of the ETF's, which is a fund of funds, has some holdings in fixed income assets.PowerShares CEF Income Composite Portfolio (PCEF)The PowerShares CEF Income Composite Portfolio seeks to track an index called the S-Network Composite Closed-End... more

Dividend Reservoir: Reconsidering Bank Stocks

Are you a dividend investor? For many of us the answer is yes. Most of the articles within Seeking Alpha pertaining to dividend-oriented investing have a tendency to look backwards, projecting an income stream through the assumption of what happened in the past to a company's fortunes (and the ability to pay dividends) will continue to occur. Most of us don't have a problem with that concept, especially if one's income portfolio is well diversified. Jane Kim, in Banking on Bank Dividends in yesterday's Wall Street Journal, presents a well crafted article suggesting that dividend seekers should also look forward and seriously consider within a dividend portfolio securities that are apt to resume or significantly increase their quarterly payout. She focuses upon bank stocks.Banks, out of... more

CVS Caremark: Undervalued Stock Promising Rising Dividends and Share Buybacks

Can CVS Caremark Corp’s (CVS) promise of rising dividends and share buybacks make up for its seemingly interminable struggles with a four-year-old acquisition? It hasn’t so far. Investors clearly are fed up with the drug store company’s inability to properly integrate Caremark, a pharmacy benefits management company it purchased for $21 billion in 2007. Last month’s announcement of disappointing annual CVS earnings - held down once again by Caremark - led to familiar post-results selling in the shares. But these shares are undervalued, according to YCharts Pro. In fact, our Large Cap Value model shows CVS, market cap about $45 billion, as one of the most attractive of the major shares today. Management’s plans to fork over a lot of cash to shareholders over the next five... more

March 12, 2011: Dividend Reservoir: Bank Stocks

Are you a dividend investor? For many of us the answer is yes. Most of the articles within Seeking Alpha pertaining to dividend-oriented investing have a tendency to look backwards, projecting an income stream through the assumption of what happened in the past to a company's fortunes (and the ability to pay dividends) will continue to occur. Most of us don't have a problem with that concept, especially if one's income portfolio is well diversified. Jane Kim, in The The Wall Street Journal, presents a well crafted article suggesting that dividend seekers should also look forward and seriously consider within a dividend portfolio securities that are apt to resume or significantly increase their quarterly payout. She focuses upon bank stocks. Banks, out of federal coercion or... more

Dividend Prince or Pauper? Valuation Tips to Separate Good from Bad

Hum as you read the following ... How much is that dividend-doggie in the window? The one with good dividends trailing. How much is that dividend-doggie in the window ... is it over-priced or at a good sale? Sometimes it can be a bit difficult for new income investors to separate a good dividend paying company from a mediocre one. Yields are insignificant if capital losses feast on your total portfolio worth. You may even end up paying tax on supposed income, while sitting at a net loss. We are going to attack a couple dividend-doggies (not used in a derogatory sense, but instead a cute puppy waiting to be bought) and come up with a rough valuation for the stock, and some general guidelines for how much the stock could earn in the future. We will start with a utility company and... more

14 High Yielding Stocks With Low Forward P/E Ratios

Here is a current sheet of 14 large capitalized stocks with low (a value of less than 15) price to earnings ratios. The minimum dividend yield amounts to 5 percent. At least, the expected earnings per share growth for the next 5 years is over 5 percent. In average, the forward P/E ratio amounts to 11.20 while the average 5 year earnings per share growth amounts to 7.16 percent. The current P/E ratio is 16.39. Al I all, the dividend yield amounts to 6.11 percent. Price to book ratio is 2.97 and price to sales ratio 1.58. The companies are working with an average operating margin of 19.91 percent; Net profit margin is 12.62 percent. Here is the table of 14 large capitalized stocks with lowest forward price/earnings ratios and highest dividend yield:... more

Dividend Scan: IBKC, HTLD, CSA, SUG, STLD, CYS, MAIN, AVD

Despite the US market reeling under the massive earthquake that shook Japan today, several companies declared their future dividend plans. Some notable dividend payers are discussed here. IBERIABANK Corporation (Nasdaq: IBKC) announced a quarterly cash dividend of $0.34 per share, payable on April 29, 2011 to shareholders of record on March 31, 2011. However, IBKC lost 0.23 percent or $0.13 to $55.51. Heartland Express Inc (Nasdaq: HTLD) declared a regular quarterly cash dividend of $0.02 per share, payable on April 4, 2011 to shareholders of record on March 24, 2011. HTLD lost 0.24 percent or $0.04 to $16.59 despite the dividend declaration. Cogdell Spencer Inc (NYSE: CSA) slipped 0.67 percent or $0.04 to $5.96 despite declaring a quarterly dividend of $0.10 per common share,... more

The Most Promising Dividends in Coal

Dividend payers deserve a berth in any long-term stock portfolio. But seemingly attractive dividend yields are not always as fetching as they may appear. Let's see which companies in the coal industry offer the most promising dividends. 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.... more

Top Net Payout Yield Stocks

Most investors continue to focus on high dividend yielding stocks paying very little attention to stock buybacks. Unless you're a retiree living completely on fixed income, it's a mistake to not focus on the complete picture of returns of capital to shareholders. The combination of stock buybacks and dividends or Net Payout Yields (NPY) has offered higher returns in the past. Buybacks can be a more efficient return of capital to shareholders as it reduces the tax burden of investors. Management also has more flexibility to increase the payout ratio when a company's stock fluctuates in price. With dividends, the investment culture requires a steady-to-rising dividend stream - leaving management teams stuck with low payout ratios to allow for unforeseen events that could lower corporate... more

How Cisco Could Become a Dividend Legend

Cisco Systems (Nasdaq: CSCO) is tapping an all-star cast of investment banks to arrange fresh loans. The networking giant will sell an undisclosed bunch of senior debt notes, then use the proceeds for "general corporate purposes" -- which could mean anything. At the same time, we know that the company plans to start paying dividends. This new debt will get dumped right into that effort, or else used to refill the coffers after the dividend payments take their toll. Either way, it's a pretty direct move to restructure Cisco's balance sheet and keep the dividend flows healthy.... more