Daily dividend news for investors in dividend stocks

Why Big Dividends Are Not Bad News

The Motley Fool recently published an article titled Why Big Dividends Are Bad News. The article argued that while 2010 has been a great year for dividend investors, the larger dividend payments may in fact be bad news for the economy. This year we have already seen 10 stocks initiating dividends, while 125 stocks have increased their dividends. Dividend investors have been excited about this shift in fortune after seeing so many firms like Alcoa (AA), Pfizer (PFE) and U.S. Steel (X) cut their dividends last year. The Motley Fool argues that the increased emphasis on dividends this year indicates that companies have no better use for their cash. Instead of plowing money back into the business to fuel future growth, these companies are taking the conservative route and just returning that... more

SeekingAlphaStock symbol(s): AA,AAPL,CSCO,PFE,X

A New Alerian MLP Index ETN With Higher Yield and Higher Risk

MLPs are red hot this year continuing their outstanding performance from last year. Selected data is shown below for the Alerian MLP Index (AMZ) along with the comparable index which includes reinvested income (AMZX):... more

SeekingAlphaStock symbol(s): AMJ,MLPL

Weyerhaeuser Co. (WY) Declares $5.6B Special Dividend Tied to REIT Conversion

Weyerhaeuser Company (NYSE: WY) today announced the board of directors has declared a special dividend of $5.6 billion. This marks a major milestone in the company's plan to convert to a real estate investment trust (REIT) by distributing its earnings and profits to shareholders. The special dividend includes the regular quarterly dividend of approximately $11 million and is payable to shareholders of record as of July 22, 2010. Weyerhaeuser expects to pay the special dividend on Sept. 1, 2010. Shareholders can elect stock or cash for the special dividend, with the total cash payment limited to 10 percent, or $560 million, of the total distribution. If cash elections exceed the approved amount, shareholders will receive a pro-rata amount of their distribution in cash and the... more

StreetInsiderStock symbol(s): WY

Weis Markets (WMK) Declares $0.29 Quarterly Dividend; 3.4% Yield

Weis Markets, Inc.'s (NYSE: WMK) Board of Directors today declared a quarterly dividend of $0.29 per share, or $1.16 annualized. The dividend is payable payable on August 2, 2010, to shareholders of record as of July 19, 2010. The ex-dividend date is July 15, 2010. Yield on the dividend is 3.4%.... more

StreetInsiderStock symbol(s): WMK

Weyerhaeuser to Announce Special Dividend

Weyerhaeuser (WY) shares are up nearly 4% in premarket trading after the company said it plans to hold a special dividend conference call Monday. The forest-products company intends to distribute $5.6 billion in retained earnings and profits to its shareholders in the form of a special dividend, according to reports. This is a necessary step to becoming a real-estate investment trust. The company said in December it plans to convert to a REIT. The new status would slash its corporate tax rate from 35% to zero, as it passes nearly all profits to shareholders. With that, the company plans to return to profitability. The Wall Street Journal reports that the $5.6 billion amount, which will be returned to shareholders mostly in stock, includes a regular $11 million quarterly dividend. The... more

DailyFinanceStock symbol(s): WY

Emerson Electric Company: 53 Years of Consecutive Dividend Increases

Summary Emerson Electric Company (EMR) is a broad technology company that sells necessary products around the world., Revenue growth over the past five years has averaged around 6% per year., Earnings growth over the past five years has averaged a little over 6% per year., Cash flow growth over this same time period has averaged around 7% per year., Annual dividend growth has been over 10% during this time period, and the company has increased its dividend for 53 consecutive years., Shares look reasonably valued at the current price in my opinion.. How to Read My Stock Analysis Reports Overview Emerson Electric Company is a Fortune 500 conglomerate technology company based in Missouri. The company was founded 120 years ago and provides a very large array of technology products and... more

SeekingAlphaStock symbol(s): EMR

Abbott Labs: Growth Stock With an Attractive Yield

Most of the remaining 43 S&P 500 Dividend Aristocrats have strong finances and are worthy of consideration for value investors, especially those who want to upgrade dividend yields. For example, the stock of Abbott (ABT), long time Dividend Aristocrat, has been flattish over the last 10 years, mostly in the 40s & 50s. Friday it closed at $46.46 with a yield of 3.8%. However, that performance is not so bad when compared with Dow Jones Industrials and S&P 500 which are lower. ABT is a leading pharmaceutical company founded in 1888 and has a long track record of growth. From 2002 to 2009, sales doubled to $30 billion while basic EPS rose from $1.63 to $3.71. Dividends were increased from 94¢ to $1.60 and raised another 10% this year to an annual rate of $1.76.... more

SeekingAlphaStock symbol(s): ABT

Top Yielding Stocks Under $10

I like low priced stocks, you like low priced stocks, everyone likes low priced stocks. And if you get a dividend in addition, it makes the stock even better. WallStreetNewsNetwork.com just came out with its list of top yielding stocks under $10 a share. Many of the companies listed are closed end funds. However, there are several regular companies.An example is Alaska Communications (ALSK) which sells for less than $9 per share, has a PE of 11.6, and pays a yield of 9.6%.... more

SeekingAlphaStock symbol(s): ALSK,HTGC,PVX

A 12 Stock High Yield Portfolio

Approximately once per month I run a high-yield momentum screen using the free service on Finviz and post the results. Last month's list is here and the strategy returned 1.64% for the month, including dividends. [[SPY]] returned .28% and [[SDY]], the S&P Dividend ETF returned 1.84%. Before I get the usual hate mail from income investors, to reiterate, the screen is more of a trading strategy and less of an income strategy (unlike some of my Dividend Aristocrat screens), although the dividends do play an essential component in the overall returns. Thus, turnover could be high and the strategy is not for everyone. Second, it is a screen and not a recommended or comprehensive portfolio. In other words, there could be sector imbalances so for investors looking to have exposure across... more

SeekingAlphaStock symbol(s): DD,DTE,HCP,HNZ,MO,NI,NYX,Q,RAI,SDY,SO,SPY,TEG,VTR

Dividend Payers Likely to Beat Corporate Bonds

One doesn't have to try too hard to read about the deal of a decade available in large dividend-paying stocks. Barron's made cheap large-caps the cover story last week and followed up this week with a warning about risk in low-yielding corporate bonds after a flood of new money lately. While I often doubt something is right when it is being flashed on the covers of financial magazines, I tend to believe that this is a historical buying opportunity. Last week, I discussed my Conservative Growth/Balanced Model Portfolio, which invests primarily in dividend-paying stocks that are likely to increase their dividends over time, describing what I called a "compelling style for challenging times." Today, I want to lay out some scenarios for how investors might fare between investing in... more

SeekingAlphaStock symbol(s): AGG,BDJ,BND