Dividend Report Card: Walgreen

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: RAI, HPY, ING, BHP, RCI, CMCSA, ALB, MTB, BAX, FFIC

The US market is trading on a positive territory amid a plethora of corporate earnings, and M&A activity. Dow Jones Industrial Average gained 0.55 percent or 67.81 points to 12,294.45. Nasdaq Composite added 0.79 percent or 22.19 points to 2,826.54, and the Standard and Poor's 500 was up 0.66 percent or 8.76 points to 1,336.77. During the day, several companies declared their annual and quarterly dividends. A few are discussed here -  Reynolds American Inc. (NYSE: RAI) increased its quarterly dividend by 8.2 percent to 53 cents per share from its previous 49 cents a share. Shares of the company added 0.69 percent or $0.23 to $33.46. Shares of Heartland Payment Systems Inc. (NYSE: HPY) gained 3.91 percent or $0.68 to $18.08 as the company raised its quarterly dividend to 4 cents... more

How To Invest In Dividend Stocks

Most situations concerning dividend investing discuss how a portfolio should be constructed, how different types of non-correlated assets should be included and how to re-balance from time to time. I realize that I have never really written anything about how to handle influx of new funds in a dividend portfolio and how to maintain asset allocations accordingly. As an investor in the accumulation stage, I tend to invest a certain amount every month. The amount of money goes first to stocks which have passed the following basic screen: 1) The company has raised dividends for over one decade 2) The P/E ratio is less than 20 3) The dividend payout ratio is less than 50% 4) The dividend yield is above 2.50% This screen decreases the total universe of investable dividend growth... more

2 Great Dividend Picks for Your Portfolio

This article is part of our Rising Star Portfolios series. Dividends deserve a prominent place in your investment strategy. Companies that pay dividends send a public signal that they're putting investors first. What's more, consistent dividend payments usually reflect robust operations. Over time, a portfolio composed of a healthy dose of dividend stocks can boost returns significantly -- and the longer you hold them, the more compounding they do.... more

The Most Promising Dividends in Beverages

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 beverage 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

How to Invest in Dividend Stocks

Most situations concerning dividend investing discuss how a portfolio should be constructed, how different types of non-correlated assets should be included and how to re-balance from time to time. I realize that I have never really written anything about how to handle influx of new funds in a dividend portfolio and how to maintain asset allocations accordingly.As an investor in the accumulation stage, I tend to invest a certain amount every month. The amount of money goes first to stocks which have passed the following basic screen:1) The company has raised dividends for over one decade2) The P/E ratio is less than 203) The dividend payout ratio is less than 50%4) The dividend yield is above 2.50%This screen decreases the total universe of investable dividend growth stocks from 300 to a... more

Generating Alpha From 3 High-Dividend Crude Oil Carriers

Management Summary In this article I will show that Crude Oil Carriers (CRU) is undervalued and that Nordic American Tankers (NAT) and Teekay Tankers (TNK) are grossly overvalued. They make for a near perfect pair trade as they pursue very similar strategies, in the same business and have similar financing structure. Company Description Very briefly put the companies own crude carriers that transport crude globally. NAT has the largest fleet focused on Suezmax ships, TNK is a close second with a focus on Suezmax and Aframax ships and CRU is about 33% smaller and focuses on Suezmax and the larger VLCC ships. NAT is net debt free and while CRU has little debt and TNK has some debt. Strategy and Management All three companies pursue a high dividend policy where they pay out net... more

AT&T or Walmart? Dividend Yield vs. Dividend Growth

When looking to build a long-term portfolio of stocks that pay high dividends, investors usually come up with a mix of stocks that either have high dividend yields or high dividend growth rates. It is difficult to find good companies that have both. This means that there is often a choice to be made. All else equal, should one invest in the company that has that enticing high dividend yield, but a low dividend growth rate, or does one exude patience and invest in the company with a relatively low yield, but a high dividend growth rate? To help answer this question I looked at two companies that offer these different alternatives: AT&T (T)and Walmart (WMT). AT&T: Div Yield 1 Year DivGrowth Rate 5 Year DivGrowth Rate ... more

Dividend Detective's High Income Trio

We're adding several new exciting issues to our model income portfolios. One is a REIT paying a 19.5% estimated dividend yield. Another, is a ship owner paying 8.9%. We're also adding a financial sector preferred that is trading 9% below its call price and paying 7.0%. Navios Maritime Partners (NMM) owns and operates dry bulk ships. It's a master limited partnership, but without the usual MLP tax reporting complications. The MLP is being added to our growth & income portfolio. Navios, although a master-limited-partnership, is treated as a regular corporation for tax purposes. Paying 8.9%, the stock has unusually strong growth prospects for a ship owner. If you want high dividends, check out our new Real Estate Investment Trust pick that's paying a 19.5% expected yield.... more

Merck Shares: Healthy Yield With Upside

Merck (MRK) shares have dropped significantly in the past couple weeks and I think now is a good time to start accumulating these shares. Today, shares are trading at $32.69, down from a 52 week high of about $39. Shares dropped when guidance disappointed some investors during the conference call. I think the drop is overdone as MRK is still estimated to earn about $3.72 per share for 2011 and almost $4 in 2012. The markets have had a great run with many investors chasing higher risk stocks. Drug stocks like Merck are seen as more defensive and less exciting when markets are running hot, but they tend to perform much better than high risk stocks do when markets correct. In the past few quarters, the markets have tended to rise into earnings season and correct shortly thereafter when... more