3 Dow Dividend Stocks With High Options Yields

Looking for blue chip dividend paying stocks with a decent dividend yield? As the rally continues, and share prices climb, many dividend yields aren't keeping pace, posing an ongoing challenge for income investors. If you want to earn higher yields over the next few months, here are 3 Dow dividend stocks that all have double-digit high options yields on covered calls and cash secured puts: American Express (AXP). Intel (INTC), and JP Morgan Chase (JPM). click to enlarge Not surprisingly, JP Morgan has the weakest management metrics due to hangover from the financial crisis, but it does have a higher profit margin than American Express. However, JPM has appreciated the most year-to-date, up 13.15%. JPM has also talked about raising its dividend in the future, as conditions approve.... more

Dividend ETF Update: Dividend ETFs for Emerging Market Equity Investment

We are updating our dividend ETF performance and present a case that a dividend ETF can be used for emerging market equity investiment. For the week ending on 2/16/2011, most dividend ETFs rose along with the general equity markets. U.S. stock dividend ETFs rose most: SPDR S&P Dividend (SDY) gained 1.2% while Vanguard Dividend Appreciation (VIG) gained 1.15%. One noticeable exception is iShares Dow Jones Intl. Select Dividend (IDV), it lost 0.2%. For more details, please refer to here. The following trend table shows the current trend rankings. From the table, U.S. REITs IYR is still ranked number one while S&P U.S. preferred stocks PFF is at the bottom. Assets Class Symbols 02/16TrendScore 02/09TrendScore Direction iShares Dow Jones... more

Cash In With These Big, Safe Dividends

There's been a renaissance in dividend investing. Could this simply be because investors have been scared silly about two nasty stock market crashes in the past decade or so? Could be. But no matter what the reason is, I love it because it brings investing back to the basics -- that is, investing in companies that actually distribute part of their profits to you rather than speculating on something way out in the unknowable future. One of the big questions for dividend investors is whether they should target big dividend yields or companies that reliably grow their dividends. I include both in my personal portfolio, but I've argued that high yielders may actually have an edge when it comes to total returns. So it doesn't seem far-fetched at all to expect a high-yield portfolio to beat... more

Dividend Stock Analysis: Microsoft

Microsoft (MSFT), the developer of the Windows operating systems, Office, and XBox, is one of the leading software companies in the world. Sales have grown at 10.5%. Net Income has grown at 11%. Dividend Yield: 2.37%. Five-Year Dividend Growth Rate: 11%. Balance Sheet: Very Strong. With a P/E of only 11.5, a strong balance sheet, and an immense but arguably eroding competitive moat, Microsoft is priced for no growth. If the company can simply maintain current levels of revenue and income from this point forward, an investment would perform reasonably well due to dividends and share repurchases. If, on the other hand, the shift towards cloud computing and mobile computing damages Microsoft revenue and income, then shareholders will likely underperform.[Click all to enlarge]... more

How Healthy Dividend-Paying Stocks Can Boost Your Portfolio's Returns

Need more money? You're certainly not alone. Investors of all levels are scratching around trying to find decent income to supplement their other investments – especially now that food and other costs are starting to spike. Trouble is, with interest rates still so low, bonds, CDs and money market funds just aren't getting the job done for many people. As a result, investors are chasing yield-bearing stocks in order to generate the income they want. That's fine… as long as you remember that it's not just the amount of income generated that's important, but also the reliability. And if you're using the income to pay the bills, the stability of the dividend becomes even more critical. For example, let's assume an investor figures he'll need $40,000 per year in dividend income to... more

Exelon: Powerful Yield and Earnings Growth

As investors continue their hunt for dividend yield in this market, many yields are coming down due to price appreciation. In addition, investors have been willing to take on more and more risk in order to juice returns in their portfolio. Investors searching for high yield with low risk should look no further than Exelon Corporation (EXC). Exelon is a utilities holding company based in Chicago, Illinois. Exelon was founded in 1887. The company generates electricity through nuclear, fossil, and hydroelectric generation. Exelon has approximately 3.8 million electricity customers in northern Illinois and 1.6 million electricity customers in southeastern Pennsylvania, as well as 485,000 natural gas customers in Pennsylvania. The company is the largest generator of nuclear power in the United... more

How to Analyze Dividend Stocks Using Levered Free Cash Flow

This week I introduced my “back of the envelope” method of analyzing stocks using levered free cash flow and I was very pleased that it got such a positive response from Seeking Alpha’s readership. For those of you who may have missed it, please click... more

Garmin at 'Neutral' Over Stiff Competition, Despite 4.6% Dividend

Just a few years ago, Garmin (GRMN) was a popular stock with the growth investing set. Today, with an 14.6% earnings yield (8.9 P/E) and a place in the Magic Formula Investing screen, the company is firmly in value stock territory. What happened to bring this rocket stock back to earth, and have investors overreacted? For those unfamiliar, Garmin is one of the leading manufacturers of global positioning system (GPS) devices worldwide. The company sells products in four segments. The largest is Automotive/Mobile, contributing about 60% of revenue and 38% of operating profits. The Automotive side consists of mounted or in-dash navigation and multi-function devices for vehicles, often factory-installed by manufacturers. The Mobile side is mainly Garmin's line of "nuvi" branded handheld... more

Stocks Going Ex-Dividend the Fourth Week of February

Here is our latest update on the stock trading technique called "Buying Dividends." This is the process of buying stocks before the ex-dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend. This technique generally works only in bull markets. In flat or choppy markets, you have to be extremely careful. In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can't sell the stock until after the ex date. The actual dividend may not be paid for another few weeks. WallStreetNewsNetwork.com has compiled a downloadable and sortable list of the stocks going ex-dividend during the next week or two. The list contains many dividend paying companies, all with market caps over... more

How Long Can United Technologies' Dividends Last?

Whether you're a beginning investor or a near-retiree, the importance of purchasing stocks that pay dividends cannot be overstated. Not only do companies that have quarterly or annual payouts provide you with a steady stream of income, they also have the potential for capital appreciation. Simply put, dividend stocks can give your portfolio what almost no other investment can -- both income and growth. At The Motley Fool, we're avid fans of dividends -- and not just because we like that steady stream of cash. Studies have shown that from 1972 to 2006, stocks in the S&P 500 that don't pay dividends have earned an average annual return of 4.1%; dividend stocks, however, have averaged a whopping 10.1% per year. That is an incredible difference -- one that you'd be crazy to not take... more