Daily dividend news for investors in dividend stocks

Economic Growth and Dividend Expansion Will Lead Banks Higher

Another week, another issue for the US banking industry. This weekend, it was news from Wells Fargo (WFC), Bank of America (BAC) and Citigroup (C) that losses from litigation related to mortgages made during the housing boom may lead to greater losses than the banks are currently provisioned for. The numbers are based on a total, worst case scenario, which must be disclosed due to a new SEC filing. While the headline of this story makes it a potential negative for banking shares this week, I believe investors who look past the headline will find shares of the large U.S. banks [ I am including Morgan Stanley (MS) and Goldman Sachs (GS) in this category, since they are now bank holding companies] to be attractive due to the steep yield curve, expanding U.S. economy, increasing return of... more

SeekingAlphaStock symbol(s): BAC,C,GS,JPM,MS,WFC,XLF

11 Dividend Stocks That Could Make You Wealthy

It seems the older I get the more I fight with my weight. I know how to lose weight. I have done it several times. The formula is not difficult, eat less and exercise more. My problem, like many others, is in the implementation. In much the same way, the formula to building wealth is rather simple – spend less than you earn and invest the difference. Once again implementation is where many people come up short. With the right focus and some positive feedback, building wealth can be much easier than shedding the spare tire around your mid-section. Here's how to do it. Fad Diets and Fad Investing Plans Rarely WorkForget about those "Make 534% On Every Trade" ads that you see on many financial websites. Real wealth is built with sweat equity and a sound financial plan.... more

SeekingAlphaStock symbol(s): BHK,CINF,CL,CWT,EMR,HRL,JNJ,KO,MMM,PG,SYY

Dividend Champions Smackdown XI: PEG Ratio Edition

Dividend Champions Smackdown XI In previous installments of the Smackdown series, I screened the Dividend Champions list of companies that have paid higher dividends for at least 25 straight years (which can be found here) using factors such as yield, payout ratio, and, most recently, the Price/Book Value ratio. This time, I decided to start with the PEG ratio, which compares a stock's Price/Earnings ratio with its expected earnings growth rate (in the case of Yahoo data, the 5-year expected growth rate). The PEG ratio is a basic measure of how the stock market is valuing not only current but expected earnings and is sometimes associated with GARP (Growth at a Reasonable Price). The lower a PEG ratio is, the better, and ratios of less than 1 are considered undervalued situations, but... more


A North American Energy Play With a 4% Dividend Yield and Upside

As I wrote last week, I’m on the hunt for exposure to undervalued oil reserves. And I think the best place to look for them right now is North American oil companies with unappreciated unconventional acreage. One company that I think fits the bill perfectly is mid-sized Canadian light oil producer Petrobakken (PBKEF.PK). Now I don’t actually own much of Petrobakken directly. But I do own a significant position through its parent company Petrobank (PEGF.PK). As the title suggests, Petrobakken has a nice dividend yield and I think it is undervalued by at least 30%, likely more. I will get to my valuation thinking later. But first I’d like to explain what has caused the stock market to not appreciate the true intrinsic value of the company. Petrobakken – Why Is It Cheap ?... more

SeekingAlphaStock symbol(s): CSCTF,PBEGF,PBKEF

The Prudent Yield-Hog

It almost seems redundant to suggest that income-oriented investors place great emphasis on yield. After all, collecting income is often seen as an antidote to the seemingly more tenuous pursuit of share price appreciation. I and others can and do write till we’re blue in the face about how dangerous it can be to get too carried away by the chasing high yields (the higher the yield, the greater the business risk and the more likely it is that the dividend will stagnate at best or be cut). But emotions are a factor: When yields rise above 10%, it’s amazing how willing we think we are to accept the risks of capital loss. Beside emotion, we have to consider need when we actually want or have to spend cash generated by investment portfolios. In other articles, such as the Triple-Play... more



Discouraging comments of Ben Bernanke on oil price rise pushed the US market to the negative zone, after having a positive start in the morning. Dow Jones Industrial Average lost 0.35 percent or 42.35 points to 12,183.99, and Nasdaq Composite slipped 0.68 percent or 18.89 points to 2,763.67. The Standard and Poor's 500 fell 0.48 percent or 6.41 points to 1,320.81. Amid market's negative movement, several companies declared their annual and quarterly dividends. Some notable dividend payers are discussed here.   St. Jude Medical Inc (NYSE: SJT) added 0.69 percent or $0.33 to $48.21 as it declared a regular quarterly cash dividend of 21 cents per share, payable on April 29, 2011 to shareholders of record on March 31, 2011. Luxottica Group SpA (NYSE: LUX) has raised its cash... more


Highest-Yielding Utilities (You Might Actually Want to Buy)

The power of dividend investing is pretty well-known these days. Higher-yielding stocks tend to offer higher returns over time than low- or no-yield stocks, according to research from Jeremy Siegel and others. In fact, the 20 best-performing survivor stocks from the original S&P 500 in 1957 are all dividend payers. What's more, reinvesting dividends acts as a "bear-market protector and return accelerator," according to Siegel. The extra shares purchased and accumulated at higher dividend yields during down periods act as a protector in falling markets, and these extra shares rising in value turn into a "return accelerator" when prices rise.... more

The Motley FoolStock symbol(s): AGL,CMS,D,DPL,EXC,NEE,NST

The 25 Highest-Yielding MLPs

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. One particular area has garnered interest over the years are Master Limited Partnerships. Investors are drawn to MLPs for their high yields and tax deferment. MLPs don't pay taxes at the corporate level, so the tax burden then gets passed to the investor. Without getting into too much detail, because of structure of the partnerships and the distributions, investors are entitled to a serious tax deferral. Investors should fully understand what they are in for before buying MLPs, but for those willing to do the research it can be very profitable.... more


Top 100 Dividend Stocks

The image on the right gives a fairly accurate image of how quickly this year has been flying by. Events all around the world continue to have profound consequences on investors around the world. We have been doing our best trying to stay focused, trying to build passive income through a dividend portfolio. The same stock is back on top of the rankings, although there are some challengers and I would expect things to change in the near future. That being said, I think many other criteria need to be considered when picking dividend stocks and that is why I will be narrowing down the list later this week. What to look for Over the past few months, we have looked at quite a few criteria that have helped us find the best dividend stocks including current yield, dividend growth and also... more

SeekingAlphaStock symbol(s): AA,AEG,BBT,DB,HBC,NLY,NU

7 High-Yield Preferred Stocks to Consider

You can smooth out the bumps and wild swings in the market through consistent dividend and interest payments, so we've screened for preferred stocks with consistent dividend payments.These debt instruments do not ebb and flow like common shares because of their nature. These companies’ preferred stocks have shown solid performance by paying out consistent dividends alongside positive price movements. To avoid credit rating downgrades, these firms aim to make the dividend payments.Aegon (AEG) (7.25% Perpetual Capital Securities) has made all dividend payments since its inception in September 2007. Investors of record at March 1 will receive the next dividend payment of $0.4531. The current yield is 7.4%. This security is rated BBB by S&P. The company focuses on life insurance, general... more

SeekingAlphaStock symbol(s): AA,AEG,BBT,DB,HBC,NLY,NU