Dividend Investors Should Take Note of Telecoms

We’re big fans of dividends. In investing, there’s nothing less risky than the prospect of cold hard cash 'toot sweet'. Thus, we’re fond of telecom stocks, which are lately offering yields of 5% to 8%.... more

Dividend Scan: BFIN, CNA, HOMB, UTX, GG, ALJ, AZPN

Wall Street held on to the gains from morning, riding on the strong corporate earnings results and mergers deals announced today. Danaher Corp. (NYSE: DHR) has agreed to buy Beckman Coulter Inc. (NYSE: BEC) for 6.8 billion.
BankFinancial Corporation (Nasdaq: BFIN) declared a cash dividend of $0.07 per common share. The dividend is payable on March 4, 2011 to stockholders of record on February 9, 2011. The stock is trading higher by 2.07 percent to $9.38 on Monday.... more

The Most Promising Dividends in Food Companies

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 food 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

Beware of Oil and Gas Dividends

Looking for income in today's market? If so, you've probably thought about investing in one of the many energy trusts sporting yields of 5% or more. Don't! Your dividend may not be what you think it is.... more

PowerShares SmallCap Utilities ETF: Higher Dividend Yield, Better Performance

PowerShares S&P SmallCap Utilities ETF (XLUS $28) offers investors an interesting combination of yield and potential growth. Launched last April by INVESCO, XLUS replicates the S&P SmallCap Utility Index, a sub-sector of the venerable S&P Utility Index. SPDR Utility ETF (XLU - $31) replicates the much larger Index. Many utility and income investors are seeking more exposure to small-cap utilities, but do not desire to give up yield or greatly increase their risk exposure through a few poor selections. XLUS could fill this void.... more

Six Dividend ETF Ideas for 2011

As we enter year three of record low interest rates, many investors continue to face significant challenges in constructing a portfolio that delivers attractive current income without taking on considerable risks. With interest rates on investment grade fixed income securities pushed down, investors who require a constant stream of payments from their portfolios have been forced to get creative in their search for yield. Some have found attractive options in emerging market debt or junk bonds, while others have looked beyond fixed income to address a “yield deficiency.” Enter dividends, a powerful tool and investing strategy that may be attractive to various types of investors.... more

Buybacks: The Invisible Dividend

In a recent series of blog posts, noted NYU professor of finance and valuation expert Aswath Damodaran has fleshed out some of his thoughts on the shift from dividends to buybacks over the past couple decades, pointing out the reasons for the shift and the relative pros and cons of each method of returning cash to shareholders. Each post is worth a read (as is the rest of his work), but of particular note is his idea of an "augmented dividend": calculating the yield on a stock by combining dividends and stock buybacks. Dividend cloaking systems engagedWhat makes the idea of augmented dividends especially interesting -- aside from the fact that it sounds like something from science fiction -- is that it can turn a non-dividend-paying stock into a high-yielding one. A buyback yield can be... more

Southside Bancshares Inc. (SBSI) Dividend Stock Analysis

Linked here is a detailed quantitative analysis of Southside Bancshares Inc. (SBSI). Below are some highlights from the above linked analysis: Company Description: Southside Bancshares Inc. primarily provides financial services to individuals, businesses, municipal entities, and non-profit organizations. Fair Value: In calculating fair value, I consider the NPV MMA Differential Fair Value along with these four calculations of fair value, see page 2 of the linked PDF for a detailed description: 1. Avg. High Yield Price 2. 20-Year DCF Price 3. Avg. P/E Price 4. Graham Number SBSI is trading at a discount to all four valuations above. The stock is trading at a 34.6% discount to its calculated fair value of $31.01. SBSI earned a Star in this section since it is trading at a fair... more

Ten Dividend Stocks Beating Inflation

One of the biggest threats behind income investors who are living off dividends in retirement is inflation. Even a portfolio consisting of the highest yielding stocks today, which maintain their distributions, would produce an income which loses purchasing power over time. As a result investors should focus on companies which can afford to regularly raise distributions every year. A good starting point includes companies which have consistently raised dividends for a long period of time. I have highlighted several stocks, which not only have raised distributions for over five years in a row, but also announced dividend increases over the past week: Archer Daniels Midland Company (ADM) procures, transports, stores, processes, and merchandises agricultural commodities and products in... more

Best in Breed Dividend Stocks Title Fight: Coke Vs. Pepsi

In the latest installment of "Best in Breed Dividend Stocks: Core Holdings for the Long-Term Investor," I identified Pepsico, Inc. (PEP) as the Best in Breed stock in the Consumer Staples sector. This choice immediately ignited the age old debate: Coca-Cola (KO) or Pepsi? Let the cola wars began anew. Judging by both the comment section and my inbox, choosing Pepsico over Coca-Cola is akin to being a Clippers fan in Los Angeles. You are in the right city, just rooting for the wrong team. Why would I build a franchise around Blake Griffin when I could have Kobe Bryant?... more