Dividend Yields That Are Just Right
Dividend yields have a bit of a "Goldilock's porridge" quality about them. Investors have to get a taste for different yields while searching for the ones that are just right. Pick one that's too low, and you'll be risking your money and not getting paid enough for taking on that risk. But pick one that's too high and you could get seriously burned. Just Right That sweet spot of dividend yields, I believe, sits at between 3-5% these days, or just above 10 year Treasury rates. There are plenty of large cap companies paying dividends in this range which have been raising their dividends over the last five years. Running a screen for these metrics yielded about 40 stocks for me. Here are a few choice picks from the bunch: Unilever (NYSE: UL) Market Cap: 84 Billion Yield: 4.75... more
Focus on Manufacturing: 6 Dividend Stocks for Every Portfolio
One of the bright sports of this economic recovery has been the strength emerging from the manufacturing and industrial production sectors of the economy. That being said, the time has come to capitalize on growth within this sector by investing in fundamentally sound companies that provide a growing dividend yield.Over the course of my (relatively short) investing career, I've come to admire the sound financial stability that dividends provide. When market conditions become unclear, I typically choose an exit price on more speculative positions. Once a position has been sold, I begin moving into less risky companies that can be counted on to provide a stream of income over the course of time.Thus, the purpose of this article is to outline 6 companies which can be counted on for stable... more
Home Depot Promises Yearly Dividend Increases and Targets 40% Payout Ratio
Home Depot (NYSE: HD) has made no secret of it's dividend intentions. According to yesterday's released 4th quarter and FY 2010 results, "As a testament to our confidence in the Company's strategic initiatives and our commitment to returning capital to our shareholders, the board increased the dividend for the second consecutive year," said Blake. "It is our intent to increase our dividend every year. Our longer-term targeted dividend payout ratio is 40 percent." 2010 was a good year for Home Depot, the world's largest home improvement store. Comparable store sales were up 4.8% this year, and total sales were up 2.8% to 68 billion. This is the first year of positive sales growth since 2006. As of 2010's unaudited numbers, the payout ratio was 47%, which is very close to their... more
The Academics Say Dividend Investing Is a Fad
As a group, investors are loving dividends right now. Just look at the attention dividends articles have gotten on the Fool.com website. Dan Dzombak's discussion of his high-yield portfolio is currently the most popular article on the website, but in recent weeks readers have also gone gaga for Brian Richards' crazy-simple dividend strategy and Anand Chokkavelu's warning about sky-high dividend yields. I have a feeling that this attention to quarterly cash payouts will be a passing fancy. And I wrote exactly that when I called dividends a fad. Of course at the time I was going largely on gut.... more
Why Apple Isn't Paying a Dividend
Though they own stock in one of the most admired companies in the world, Apple (Nasdaq: AAPL) shareholders have one common, and stern, grievance: Why does the company hold so much cash, and why does it refuse to pay a dividend? Conspiracy theories abound. Apple is saving for a massive acquisition. Management is inept. Steve Jobs is a just a jerk.... more
Dividend Report Card: Philip Morris International
In this series, we analyze financial metrics to begin answering the following questions about a company's dividend: Over time, has this company steadily increased its payouts? How sustainable is the dividend? Does the company have room to further increase the dividend? The Dividend Report Card wasn't designed as a buy or sell signal, but rather as a tool to gauge the health of a company's dividend. For a full explanation of each category, click here for a tutorial.... more
Dividend Scan: CHFC, APA, TIS, GNTX, HD, ALV, BKS, SAH, DDR, FTF
Falling home prices in major US cities, and rise in oil prices following intensifying Libyan tension have pushed the US market to a negative corner during the mid-day trading. Dow Jones Industrial Average fell 0.41 percent or 51.08 points to 12,340.17. Nasdaq Composite slipped 0.97 percent or 27.50 points to 2,806.45, and the Standard and Poor's 500 lost 0.64 percent or 8.59 points to 1,334.42. Amid the negative movement, several companies declared their annual and quarterly dividends. Some notable dividend payers are discussed here. Chemical Financial Corporation (Nasdaq: CHFC) declared a quarterly cash dividend of $0.20 per share, payable on March 18, 2011 to shareholders of record on March 4, 2011. However, shares of the company lost 0.39 percent or $0.08 to $20.52 during the... more
The Most Promising Dividends in Foreign Wireless
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 non-U.S. wireless 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
10 Safe, High-Yield Telecom Dividend Giants for 2011
We scoured the world for giant dividends from the telecom sector. Each one on this list holds a dominant position in its home country with regulatory barriers to entry and significant infrastructure investment that protect cash flows. Many of these operate outside the US, just like these 13 emerging market dividend stocks. Here’s what we found, plus some commentary on each: Magyar Telekom (MYTAY.PK) paid a one-time dividend of $1.661 per share in 2010... more
Free Cash Flow Kings of the Dividend Stocks
Most income investors know that when it comes to paying dividends, the amount of freely flowing cash is vital. You can have a high net income, but you need cash flow to pay sustainable dividends to shareholders. This article will attempt to... more