The 15 Highest-Yielding Integrated Oil and Gas Stocks

Dividend investing is popular again. Investors have taken to heart Jeremy Siegel’s studies, which show that higher-yielding stocks tend to offer greater returns over time than low- or no-yield stocks. The highest dividend yields can be very tantalizing. As long as a stock yielding 15% doesn’t lose value, you’ll make 15% in one year! In more cases than not, however, an astronomical yield is a bad sign for a stock. Since dividend yields and stock prices move in opposite directions, a high yield usually means that investors have begun to worry about the business and driven down its stock price. However, certain types of companies, such as REITs, have to pay out most of their income as dividends, so their yields will be higher than "normal." Dividends are not guaranteed; you need to... more

Dividends Aren’t Enough: Brokers

I love cash. As an investor, nothing makes me happier than a company that returns money to shareholders, rather than spending it recklessly on a CEO’s pet projects or an ill-fated acquisition. Historically, investors have often looked at a stock’s dividend yield to identify these shareholder-friendly enterprises. But I prefer a slightly different metric -- one proven to further maximize investor returns. A 2007 study in The Journal of Finance suggests that investors should also factor net share repurchases into the equation, through a metric called the net payout ratio. According to the authors of the study, this ratio not only identifies companies that are paying back investors, but also predicts future equity returns better than the dividend yield.... more

Dividends Aren’t Enough: Transportation

I love cash. As an investor, nothing makes me happier than a company that returns money to shareholders, rather than spending it recklessly on a CEO’s pet projects or an ill-fated acquisition. Historically, investors have often looked at a stock’s dividend yield to identify these shareholder-friendly enterprises. But I prefer a slightly different metric -- one proven to further maximize investor returns. A 2007 study in The Journal of Finance suggests that investors should also factor net share repurchases into the equation, through a metric called the net payout ratio. According to the authors of the study, this ratio not only identifies companies that are paying back investors, but also predicts future equity returns better than the dividend yield.... more

Best Dividend Play: Verizon, Frontier, or Turkcell?

In this Motley Fool series, we rank three related stocks on five criteria to determine the best buy. Today’s match-up is Verizon (NYSE: VZ) vs. Frontier Communications (NYSE: FTR) vs. Turkcell (NYSE: TKC).... more

Dividends Aren’t Enough: Agriculture

I love cash. As an investor, nothing makes me happier than a company that returns money to shareholders, rather than spending it recklessly on a CEO’s pet projects or an ill-fated acquisition. Historically, investors have often looked at a stock’s dividend yield to identify these shareholder-friendly enterprises. But I prefer a slightly different metric -- one proven to further maximize investor returns. A 2007 study in The Journal of Finance suggests that investors should also factor net share repurchases into the equation, through a metric called the net payout ratio. According to the authors of the study, this ratio not only identifies companies that are paying back investors, but also predicts future equity returns better than the dividend yield.... more

How Safe Are Eli Lilly’s Dividends?

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 you 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... more

Big Dividends, Big Risk?

Last week, Motley Fool Income Investor James Early told me about one oil stock that could produce big returns. In this week’s installment, James shares his thoughts on two of the country’s biggest dividend payers and explains why investors shouldn’t focus too much on big yields. Mac Greer: OK, James. The three highest-yielding stocks in the S&P 500 are rural telecoms -- Frontier Communications (NYSE: FTR), Windstream (NYSE: WIN), and CenturyLink (NYSE: CTL). Why?... more

Can McDonald’s Keep Its Dividends Coming?

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 you 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... more

Dividend Stocks for a Tough Investing Environment

It’s becoming increasingly difficult to invest in the current environment. Over the last few weeks some of the legends of the investment business have said this market is too difficult and have subsequently shut down their businesses. It’s no wonder that we’ve seen an increasing demand for bonds and bond related instruments. But that doesn’t mean equities are dead. In fact, Morgan Stanley believes this is a perfect environment for high quality dividend paying stocks. MS believes there is an opportunity here: Longer term we believe the rise in the spread between dividend yield and real bond yields may represent a statement about the market’s view on three things:... more

Porter Bancorp (PBIB) Slashes Dividend in Half to $0.10, Yielding 4.07%

Porter Bancorp (Nasdaq: PBIB) cuts its cash dividend from $0.20 to $0.10 per common share, payable on October 1 to shareholders of record on September 15. The ex-dividend date is September 13. The dividend yield moves from 8.13% to 4.07%.... more