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  • 6 New Dividend Yield Leaders


    by Robert Gordon Dividend yields can help compare different dividend-paying stocks. For example, an investor can find out what they will earn with one stock and compare it to others. Dividend yields can also help an investor evaluate stocks against assets such as bonds, certificate of deposit, mutual funds and others. The dividend yield of a stock is calculated by dividing annual dividend by current stock price. In the following article, I will discuss six new high yield leaders of the current market, and how they are positioned going forward. Universal Corporation (UVV): Universal Corporation operates as a leaf tobacco merchant and processor primarily in North America, South America, Africa, Europe, and Asia. The stock issues an annual dividend of $1.96, has a yield of 4.40% and a... more

    Published Sun, 05 Feb 2012 15:54:06 -0500 on SeekingAlpha

    Stock symbol(s): AOI,BTI,CAG,DLX,DNPCF.PK,HNZ,KFT,LO,PBI,RAI,RRD,TTM,UVV,XRX



  • 7 High Dividend Yield Stocks Undervalued By The Graham Number


    Evaluating dividend stocks by dividend yield can be tricky - since dividend yield is dividend/share price, the dividend yield can rise without any increase in dividend. This gives rise to the term "value trap." For ideas on how to avoid value traps, we ran a screen on high dividend yield stocks for those that have traded higher over the last quarter. However, we also wanted to search for those that could still be undervalued, by looking for those trading at steep discounts to their Graham Number. The Graham number was created by the "godfather of value investing" Benjamin Graham, and calculates a stock's maximum fair value based off of its EPS and book value per share (BVPS). Stocks trading below their Graham Number may be undervalued. Graham Number = SQRT(22.5 x... more

    Published Sun, 05 Feb 2012 09:16:00 -0500 on SeekingAlpha

    Stock symbol(s): APL,BOX,CNAF,DCOM,ETR,NWFL,RIMG



  • The $27,000 Millionaire: Dividend Growth Unleashed

    Johnson & Johnson (NYSE: JNJ), a long time member of the Dow Jones Industrial Average and consistent dividend stock, has been a phenomenal investment over the last 40 years. Its track record can be used to emphasize a key point about retirement investing - time and consistency are the best friends that an investor can have. JNJ is a leading global consumer health care company with more than 250 operating companies throughout the world. JNJ has three operating segments: Consumer, Pharmaceutical, and Medical Devices and Diagnostics. Their Consumer Segment manufactures and markets products under many brand names including Listerine, Neutrogena, Tylenol, and Sudafed. The Pharmaceutical Segment provides products, including Remicade for certain inflammatory diseases and Intelence for... more

    Published Sun, 05 Feb 2012 07:29:48 -0500 on SeekingAlpha

    Stock symbol(s): EEM,XLU



  • February's High Yield Dividend Champion Portfolio


    In December 2010, I created a screen/hypothetical portfolio called the “High Yield Dividend Champion Portfolio.” The screen is tracked publicly as a continuous hypothetical portfolio with a starting balance of $100,000 on Scott’s Investments (see the right hand column for a link to the spreadsheet). Like many of the screens, strategies, and portfolios I track and prefer, this strategy takes a small number of historically relevant ideas, to create a simple, yet powerful action plan for the individual investor. As I have previously detailed, Some studies have shown that the, highest yielding, low payout stocks perform better over time than stocks with higher payouts and lower yields. This portfolio attempts to capture the best high yield, low payout stocks with a... more

    Published Sun, 05 Feb 2012 07:14:34 -0500 on SeekingAlpha



  • 4 Cheap Dividend Plays With Limited Upside

    What follows is a list of companies that have PE ratios below 12 and dividend yields greater than 3.5%. These companies appear attractive in the sense that they provide an income investment to hedge against a double dip and considerable room for multiples expansion in the event of a recovery. They cover a variety of industries: integrated oil & gas, speciality retailing, REITs, and home construction. The Street is currently bearish about all of the companies, save Gafisa (GFA). Fourth quarter results may be weak, but the company is appropriately de-risking the business by shifting away from Tenda and towards Alphaville. In addition, management is securitizing receivables to further limit cash flow burn. Based on my analysis, however, I find limited upside for all of the companies. ... more

    Published Sun, 05 Feb 2012 07:34:42 -0500 on SeekingAlpha

    Stock symbol(s): COP,GFA,NLY,RSH



  • High-Tech Stocks Could Soon Become Great Dividend Stocks

    In the past few years, I've continually marveled at the stunning piles of cash parked on the balance sheets of many high-tech firms. These companies had been holding lots of cash to stay strong in case industry conditions waned. But even with the sharp economic blows of 2008 and 2009, their cash piles just kept growing. They've been saving for a rainy day that's likely to never arrive. I've also been noting how these companies could boost shares by committing much of that cash to stock buybacks. Yet software giant CA Technologies. (NYSE: CA) may have upended that theory. In late January, the company announced plans to super-size its dividend, from $0.20 a year to $1 a year. The dividend yield suddenly shot up from 1% to more than 4%. CA can surely afford the higher... more

    Published Sun, 05 Feb 2012 06:13:34 -0500 on SeekingAlpha

    Stock symbol(s): ALTR,BMC,CA,INTC,LSI,SYMC,WDC



  • 7 Insider Dividend Stock Picks With Impressive Profitability

    Whenever company insiders such as upper management or members of the board buy company shares, the report their purchases. Analysts view this as a very positive sign because presumably no one knows the company better than they do. We extended this idea to dividend stocks by running a screen on high dividend yield stocks being bought up by their company insiders over the last six months. We then screened for exceptional profitability, with companies beating their industry averages on gross, operating, and pretax margins. ‪Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬ ‪ Do you think these stocks pay attractive dividends? Use this list as a... more

    Published Sun, 05 Feb 2012 04:13:00 -0500 on SeekingAlpha

    Stock symbol(s): ATLO,CBU,CNAF,CTBI,FFIN,KRO,SYBT



  • 5 Dividend Stocks For A Retirement Portfolio

    Last Sunday, after demanding a full day off from work, I slept in, brewed a fresh pot of some ridiculously good coffee, lounged around until about 10:30am, had a bite to eat with my girlfriend, then started my day. For the next 12 hours or so I wrote an article for Seeking Alpha, had lunch with friends and even found some time to exercise. Then it occurred to me: this has been one of the best days of my life. How could I make it happen again? I've heard retirement and productive leisure can actually be a reality for some lucky folks out there. Is this true? If so, tell me how to achieve it. Come on... I want in. Though I'm only 28, I'll be honest and let you older investors out there know that I'm on to you. The truth is, I began figuring out in my 20s... more

    Published Sun, 05 Feb 2012 05:33:51 -0500 on SeekingAlpha

    Stock symbol(s): ABT,JNJ,TGT,WMT,XOM



  • 2 High Yielding Foreign Telecom Stocks That Look Like They Have Bottomed

    Given my cautious view of the market after months of a significant equity rally, I am taking some of my profits I have made in the bounce back of cyclical and commodity stocks and moving those funds into defensive sectors with low valuations and rock solid dividend streams. One area I like is foreign telecom stocks that pay over 5% dividends. My core positions in this area, which I have articulated before, are Vodafone (VOD) and Telefonica (TEF). Two stocks I am currently looking to add to my telecom position on the next dip in the market are below. They have solid yields, low valuations and look like they have bottomed. Mobile TeleSystems (MBT) Business description from Yahoo Finance (see here): Mobile TeleSystems OJSC, together with its subsidiaries, provides telecommunications... more

    Published Sun, 05 Feb 2012 05:36:49 -0500 on SeekingAlpha

    Stock symbol(s): MBT,SKM,TEF,VOD



  • 6 MLPs With Robust Yield In Low Interest Rate Environment

    Master Limited Partnerships (MLPS) provide investors income-generating assets with strong secular industry tailwinds. As the Federal Reserve drives down short-term interest rates, MLPs provide much needed current income. MLPs provide stable yields and are often times higher than those of common stocks. In a highly correlated, "risk-on risk-off" world, MLPs provide access to asset classes that is less correlated to stocks and bonds. MLPs have only modest direct commodity sensitivity, as the Company's business model is derived from fee-based contracts that are largely insensitive to commodity price fluctuations. MLPs are a limited partnership that is publicly traded on a securities exchange. MLPs combine the tax benefits of a limited partnership with the liquidity of... more

    Published Sun, 05 Feb 2012 03:31:31 -0500 on SeekingAlpha

    Stock symbol(s): BWP,EPB,KMP,MMP,OKS,RGP