Daily dividend news for investors in dividend stocks

The Inner Workings of Dividend ETFs

Dividend ETFs can be a great way to add some stability and income to your portfolio. That aside, they still do need a little understanding before you jump in. An ETF that owns stocks will collect the dividends based on the number of shares of the underlying companies it owns over the course of time, explains Michael Rawson for Morningstar. These dividends are gathered and then get paid out to shareholders. But how are these amounts figured? Rawson sheds some light: Dividend yield is represented by the sum of all dividends paid by the fund over the past 12 months, divided by the previous month-end net asset value (NAV). When researching a dividend yield, there are two numbers that come up: an average dividend yield and a dividend yield. The difference between the fund’s dividend yield... more


5 Stock Bargains From France - Some With High Dividend Yields

With all the debt and euro concerns, stock markets in Europe have underperformed other markets for months now. This has created some potential long term buying opportunities.The French stocks below are trading at valuations that would appeal to most value investors. Some of these stocks have pulled back from their highs, while others look ready to make new highs soon. It could be time to start accumulating shares in these names. These share have low PE ratios, strong balance sheets and, in some cases, high dividend yields.Here are the five companies: France Telecom SA (FTE) is trading at $21.93. France Telecom is one of the leading telecommunications companies in France. These shares have traded in a range between $17.26 to $24.69 over the past 52 weeks. The 50 day moving average is... more

SeekingAlphaStock symbol(s): ALU,FTE,SNY,TOT,VE

Yield Boosting, Volatility Reducing Dividend Stocks

For investors seeking current income this is the proverbial free lunch. Adding these stocks to your existing equity portfolio should provide the dual benefit of increasing current income while lowering portfolio volatility. The other considerations would be for the stocks to be at fair value since the goal is to seek current income and to a lesser extent price appreciation. Stocks that offer this benefit have low correlations to the market, high dividend yields, and low volatility. The screen was run to identify a short list of stocks with low betas and dividend yields. I also screened for market capitalizations above $300 million. The initial screen identified 523 stocks with a beta less than .5 and a positive dividend yield. First, a low but positive beta on average lowers the risk... more


Undervalued Financials: 3 High Dividend Stocks With Low 2011 PEG Ratios

Since the crash, many investors have shunned financial stocks, having been badly burned during the market meltdown. However, Standard & Poor's recently published a projected 2011 EPS growth-by-sector table that puts the Financial sector near the top for expected growth in 2011:There are currently some financial dividend paying stocks that are undervalued, when analysed by their 2011 PEG values. In addition, they each offer a hefty dividend yield. This week, we screened for Financial stocks with attractive ROE, high dividend yields, strong profit margins, and low 2011 PEG ratios. We came up with 3 financial dividend stocks, 2 REIT's and a Diversified Investments firm, which we've added to the Financials section of our High Dividend Stocks by Sector Tables: Resource Capital Corp REIT.,... more

SeekingAlphaStock symbol(s): MAIN,NYMT,RSO

Two Utilities with 6% Yield and Street Support

There are two utilities that offer a 6% or greater yield and are well liked on the Street. Niska Gas Storage LLC, (NKA) and Unitil Corp (UTL) fit the bill of higher yield and an analyst rating of “buy or better”. Utility investors are usually presented with two basic choices: higher current yield and lower growth or lower current yield and higher growth. Depending on an investors specific circumstance, either may be appropriate. These two fall into the category of higher current yield and lower growth. Niska Gas Storage operates three natural gas storage facilities with total storage capacity of 204 bcf, located in Canada, Northern California and Oklahoma. NKA is the largest independent natural gas storage operator in North America. 51% of revenues forecast for FY March 2011 will... more

SeekingAlphaStock symbol(s): UTL

Understanding the Inner-Workings of Dividend ETFs

Dividend exchange traded funds (ETFs) can be a great way to add some stability and income to your portfolio. That aside, they still do need a little understanding before you jump in... more


Dividend Champions: Focus on Utilities

The Dividend Champions spreadsheet and PDF have been updated through 2/28/11 and are available here. Note that all references to Champions mean companies that have paid higher dividends for at least 25 straight years; Contenders have streaks of 10-24 years; Challengers have streaks of 5-9 years. Together, all of these companies may be referred to using the abbreviation “CCC.” This is the third in a series of articles focusing on specific industries and isolating the CCC companies within those industries. The first covered Master Limited Partnerships (or MLPs) and the second covered Real Estate Investment Trusts (or REITs). What Are Utilities? Although that question may seem a bit facetious, it's worth asking in view of recent changes, such as the deregulation trend of the 1990s, as... more


Stocks Going Ex-Dividend Within the Second Week of March

Here is our latest update on the stock trading technique called "Buying Dividends." This is the process of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend. This technique generally works only in bull markets. In flat or choppy markets, you have to be extremely careful. In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can't sell the stock until after the ex date. The actual dividend may not be paid for another few weeks. WallStreetNewsNetwork.com has compiled a downloadable and sortable Excel list of the stocks going ex dividend during the next week or two. The list contains many dividend paying companies, all with market caps... more

SeekingAlphaStock symbol(s): AEE,HRB,MDU,NL

10 Dividend Stocks Raising Their Payouts And Yields

When you purchase individual stocks, risk is inherit. Sometimes bad things happen to good stocks. Eventually, every investor will hold a stock that falls out of favor and endures a double-digit decline. Understanding this from the onset makes it easier to deal with. To minimize the risk of significant declines, your core portfolio should focus on blue-chip dividend growth stocks. Listed below are select companies that have recently elected to raise their payout and yield by increasing their cash dividends to shareholders: Wal-Mart Stores, Inc. (WMT) serves customers and members more than 200 million times per week at 8,970 retail units under 60 different banners in 15 countries. March 3nd the company increased its quarterly dividend 21 percent increase to $0.3650/share. The dividend... more

iStockAnalystStock symbol(s): ABT,CBL,FRED,GD,NATL,THG,UNS,WGL,WMI,WMT,WRI

Dividend Aristrocrats: Four Yield Favorites

A good source for finding stocks that consistently boost their dividends is S&P's High Yield Dividend Aristocrats Index. Four stocks in that index -- ExxonMobil (XOM), PepsiCo (PEP), Procter & Gamble (PG), and Walgreen (WBA) -- are also long-time residents of our Editor's Portfolio. It's estimated that approximately one-third of the S&P 500 Index's total return since 1926 is due to dividends. Thus, dividends matter, especially if that dividend stream rises over time. Just because a company has boosted its dividend 25 years or more doesn't necessarily make it a great investment. But such consistency should not be ignored by investors: Rising dividends help offset the effects of inflation. Most investments get roughed up during periods of sharply rising in?ation. Still, a... more

iStockAnalystStock symbol(s): PEP,PG,WBA,XOM