Some investors believe that low priced stocks are the best ones to invest in during a market crash because they can have the biggest percentage upside when the market recovers. Other investors think that sticking with the large caps is the way to go in case market bottom is missed by investing too soon, the loss won't be as bad. And yet others think you should just stay out of the market until we are absolutely, positively in a bull market, in order to avoid any further loss.
My opinion? Buy income stocks that pay decent dividends with a great payout history; companies such as Johnson & Johnson (JNJ) and Target Corp. (TGT). If the market keeps dropping, at least you will still be receiving income, getting your capital returned to you. If you are lucky and you have picked the exact bottom, your stocks will go up and you will still receive income. If the market stays flat, you will still receive income. It's a win, win, win situation.
Now you just have to narrow down your investment choices to the ones with a solid dividend track record. According to WallStreetNewsNetwork.com, there are over 20 stocks that have increased their dividends for over 30 years in a row. An example would be Abbott Laboratories (ABT), which has increased its dividend 38 years in a row. The stock trades at 9.6 times forward earnings. Speaking of earnings, the company reported a 50.4% increase in quarterly earnings year-over-year on a 9% increase in revenues. The company is currently generating a payout rate of 3.8%.
PepsiCo Inc (PEP) has had a similar dividend increase history. The company boosted its earnings by 17.6% for the latest quarter, with a 13.7% rise in sales. The stock trades at 13 times forward earnings, and yields 3.2%.
Want more ideas? Wal-Mart Stores (WMT) has increased dividends 36 years in a row, Archer-Daniels-Midland (ADM) 35 years, and Family Dollar Stores (FDO) 34 years. For a free list of over 20 stocks that have bumped up their dividends for more than 30 years in a row, including a couple that have increased over 50 years in a row, go to WallStreetNewsNetwork.com.
Disclosure: Author didn't own any of the above at the time the article was written.
By Stockerblog.com
Showing posts with label dividend increase. Show all posts
Showing posts with label dividend increase. Show all posts
Monday, August 8, 2011
Monday, June 13, 2011
Huge Dividend Increases are a Sign of an Economic Turnaround
What better indication of a company's health than an increase in dividend. And if lots of companies raise their dividend across various sectors, it is a positive sign for the economy. If you own a high yield stock for the long term for its income, and the stock increases its dividend, then you really don't have to care about the day to day or week to week fluctuations in the stock price.
So what companies are providing these pleasant surprises to their shareholders? Target (TGT) bumped up its dividend by 20%, an increase of 5 cents to 30 cents a share per quarter. Target sports a yield of 2.6% and trades at 10.4 times forward earnings.
Caterpillar (CAT) boosted its quarterly cash dividend by two cents to forty-six cents per share. The stock has a dividend payout rate of 1.9% and a forward price to earnings ratio of 10.7.
Chesapeake Energy Corp. (CHK) is increasing its quarterly dividend by 17% to 8.75 cents a share. The company trades at 8.9 times forward earnings and yields 1%.
Iron Mountain Inc. (IRM) announced announced a 33% increase in its quarterly cash dividend. Iron Mountain yields 2.4% and trades at 21.6 times forward earnings.
Stage Stores, Inc. (SSI) announced a 20% increase in the its quarterly dividend rate to 9 cents per share from the previous quarterly rate of 7.5 cents per share. The stock has a forward PE of 10.4 and a yield of 2.1%.
CR Bard Inc. (BCR) also recently announced a dividend increase. The stock yields 0.7% and has a forward PE of 15.4.
Even FedEx (FDX) boosted its dividend. The stock trades at 13.2 times forward earnings and yields 0.6%.
With all these dividend increases, an economic turnaround must be on the horizon. If you like high yield stocks, you should check out some of the downloadable high yield stock lists at WallStreetNewsNetwork.com.
Disclosure: Author owns FDX.
By Stockerblog.com
So what companies are providing these pleasant surprises to their shareholders? Target (TGT) bumped up its dividend by 20%, an increase of 5 cents to 30 cents a share per quarter. Target sports a yield of 2.6% and trades at 10.4 times forward earnings.
Caterpillar (CAT) boosted its quarterly cash dividend by two cents to forty-six cents per share. The stock has a dividend payout rate of 1.9% and a forward price to earnings ratio of 10.7.
Chesapeake Energy Corp. (CHK) is increasing its quarterly dividend by 17% to 8.75 cents a share. The company trades at 8.9 times forward earnings and yields 1%.
Iron Mountain Inc. (IRM) announced announced a 33% increase in its quarterly cash dividend. Iron Mountain yields 2.4% and trades at 21.6 times forward earnings.
Stage Stores, Inc. (SSI) announced a 20% increase in the its quarterly dividend rate to 9 cents per share from the previous quarterly rate of 7.5 cents per share. The stock has a forward PE of 10.4 and a yield of 2.1%.
CR Bard Inc. (BCR) also recently announced a dividend increase. The stock yields 0.7% and has a forward PE of 15.4.
Even FedEx (FDX) boosted its dividend. The stock trades at 13.2 times forward earnings and yields 0.6%.
With all these dividend increases, an economic turnaround must be on the horizon. If you like high yield stocks, you should check out some of the downloadable high yield stock lists at WallStreetNewsNetwork.com.
Disclosure: Author owns FDX.
By Stockerblog.com
Monday, June 6, 2011
What Two Stocks Have Had Dividend Increases for Over 55 Years?
What better indication of corporate strength than long term increasing dividends. There are actually about a hundred publicly traded companies with a track record of increasing dividends for 25 years or more. But when looking back beyond 55 years, only two make the cut and both have yields in excess of 3.2%.
The first company, which has increased dividends for 58 years in a row, is in the fast growing business of integrated self-service delivery and security systems. The company, Diebold, Incorporated (DBD), makes everything from automated teller machines to safes to digital surveillance to biometric technologies. The stock trades at 13.6 time forward earnings and pays a decent yield of 3.6%.
Earnings were down significantly for the latest quarter year-over-year on a one percent drop in revenues, primarily due to higher taxes and losses in Europe. “As expected, we got off to a slow start in the first quarter. The results we’re reporting today slightly exceeded our internal expectations for the first quarter, despite heavy losses in Europe and a higher tax rate. We previously communicated we expect an unusually strong second half of 2011, and our outlook remains the same,” said Thomas W. Swidarski, Diebold president and chief executive officer.
Total dividend payout for Diebold is $73.1 million, which is well covered by the operating cash flow of $239.4 million. The dividend payout rate was raised in February from 27 cents a share to 28 cents share, an increase of 3.7%.
The other long term dividend increaser is American States Water Company (AWR), which has boosted its dividend 57 years in a row. This stock, which is one of the companies on the High Yield Water Utility Stock list at WallStreetNewsNetwork.com, trades at 15.6 times forward earnings and yields 3.3%.
The total dividend payout is $20.9 million, easily covered by $54.7 million in operating cash flow. Earnings for the latest quarter were down 10.6% on a 6.6% increase in revenues.
If you like high yield stocks, there are plenty of top yielding stock lists, most of which are free, at WallStreetNewsNetwork.com.
Disclosure: Author did not own any of the above at the time the article was written.
By Stockerblog.com
The first company, which has increased dividends for 58 years in a row, is in the fast growing business of integrated self-service delivery and security systems. The company, Diebold, Incorporated (DBD), makes everything from automated teller machines to safes to digital surveillance to biometric technologies. The stock trades at 13.6 time forward earnings and pays a decent yield of 3.6%.
Earnings were down significantly for the latest quarter year-over-year on a one percent drop in revenues, primarily due to higher taxes and losses in Europe. “As expected, we got off to a slow start in the first quarter. The results we’re reporting today slightly exceeded our internal expectations for the first quarter, despite heavy losses in Europe and a higher tax rate. We previously communicated we expect an unusually strong second half of 2011, and our outlook remains the same,” said Thomas W. Swidarski, Diebold president and chief executive officer.
Total dividend payout for Diebold is $73.1 million, which is well covered by the operating cash flow of $239.4 million. The dividend payout rate was raised in February from 27 cents a share to 28 cents share, an increase of 3.7%.
The other long term dividend increaser is American States Water Company (AWR), which has boosted its dividend 57 years in a row. This stock, which is one of the companies on the High Yield Water Utility Stock list at WallStreetNewsNetwork.com, trades at 15.6 times forward earnings and yields 3.3%.
The total dividend payout is $20.9 million, easily covered by $54.7 million in operating cash flow. Earnings for the latest quarter were down 10.6% on a 6.6% increase in revenues.
If you like high yield stocks, there are plenty of top yielding stock lists, most of which are free, at WallStreetNewsNetwork.com.
Disclosure: Author did not own any of the above at the time the article was written.
By Stockerblog.com
Thursday, November 18, 2010
How to Get a 41% Effective Yield on a Blue Chip Stock
Although there are always exceptions to the rule, good long term track records are important. And when you look at dividend increasing stocks, that can be very true, especially those that have raised their dividends for many years, such as 3M Company (MMM), Stanley Works (SWK) and Abbott Laboratories (ABT).
One of the stocks that shows up on the WallStreetNewsNetwork.com list of dividend increasing stocks is Clorox (CLX), which has increased its dividend for 33 years in a row, and provides a current yield of 3.5%. But the interesting feature about dividend raisers is that the effective yield based on cost basis is much higher.
Let's not go back 33 years or even 30 years, as that is a long time for any investment. But looking back twenty years, if you had bought the stock at that time, the initial yield would have been only 1.7%. If you held onto the stock, taking into consideration the stock splits and dividend reinvestments, the current yield based on original cost would be an incredible 41%.
So maybe twenty years is still too long of a time frame. Let's look back just ten years. Based on a purchase ten years ago, the current effective yield based on cost basis would be 6.1%, which is still pretty substantial, compared to the current yields on other large cap blue chip stocks.
Clorox recently posted a 37.6% increase in earnings on a slight drop in revenues. Operating cash flow of $873 million is way more than enough to cover the $ 306.77 million in dividend payouts. The company held its shareholder meeting yesterday and reported that it anticipates stronger growth in the second half of its fiscal year.
There are plenty of other dividend increasers that investors can choose from which can be found at WallStreetNewsNetwork.com, all with dividend increases for over 30 years and yields ranging from 0.9% to 5.0%.
Disclosure: Author did not own the above at the time the article was written.
By Stockerblog.com
One of the stocks that shows up on the WallStreetNewsNetwork.com list of dividend increasing stocks is Clorox (CLX), which has increased its dividend for 33 years in a row, and provides a current yield of 3.5%. But the interesting feature about dividend raisers is that the effective yield based on cost basis is much higher.
Let's not go back 33 years or even 30 years, as that is a long time for any investment. But looking back twenty years, if you had bought the stock at that time, the initial yield would have been only 1.7%. If you held onto the stock, taking into consideration the stock splits and dividend reinvestments, the current yield based on original cost would be an incredible 41%.
So maybe twenty years is still too long of a time frame. Let's look back just ten years. Based on a purchase ten years ago, the current effective yield based on cost basis would be 6.1%, which is still pretty substantial, compared to the current yields on other large cap blue chip stocks.
Clorox recently posted a 37.6% increase in earnings on a slight drop in revenues. Operating cash flow of $873 million is way more than enough to cover the $ 306.77 million in dividend payouts. The company held its shareholder meeting yesterday and reported that it anticipates stronger growth in the second half of its fiscal year.
There are plenty of other dividend increasers that investors can choose from which can be found at WallStreetNewsNetwork.com, all with dividend increases for over 30 years and yields ranging from 0.9% to 5.0%.
Disclosure: Author did not own the above at the time the article was written.
By Stockerblog.com
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