Articles About Dividend Investing

2 British ADRs With Attractive Dividend Yields

Many stocks of the London Stock Exchange also trade on stock exchanges like the NYSE or NASDAQ in the form of ADRs, offering a great opportunity to U.S. investors to capitalize on growth. ADR stands for American Depositary Receipt and it represents 100% ownership to the foreign company. ADRs trade in over-the-counter (OTC) markets, are issued by U.S. depositary banks and are typically equity rather than debt or money market assets. ADRs can offer high dividends like common U.S shares and their prices mirror the price changes in the foreign market. Of course, as there is always the risk of political events and macroeconomic instability, like a Brexit, one should be able to pick stocks that are offered at a relatively low price, keeping a long-term view. This article discusses two UK... more

Stock symbol(s): AZN,IHG

Mid-Cap REITs With A Dividend Yield Over 5%

Real Estate Investment Trusts (REITs) allow you to invest in portfolios of large-scale properties by purchasing the relevant stocks. As a REIT stockholder, you can benefit from income investing in the real estate market, without actually owning a finance property. In fact, owning and operating real estate requires thorough knowledge and patience, along with the danger of being highly leveraged and illiquid. This means that you cannot sell your property immediately for cash, plus you have to be able to evaluate your property and know how to calculated an annual return on investment. On the other hand, REITs offer you the benefits of owning equity through purchasing on the stock market. This article discusses three mid-cap REITs that trade in the REIT - Healthcare Facilities... more

Stock symbol(s): CXW,EPR,OHI

3 Top Canadian ADRs for Growth

There are many Canadian stocks that trade both on the NYSE (as ADRs) and the Nasdaq stock markets. Mind you, that a single ADR may represent a group of foreign shares held by the bank. If dividends are issued in the company’s country of operation, in this case Canada, the dividends will be deposited in the bank, and will be converted to U.S. dollars before they are distributed to the ADRs holders. Another thing you need to know is that tax treatment of ADRs is the same as U.S.-listed securities, except if there are foreign withholding taxes for income distributions, such as dividends or sale proceeds. This article discusses three Canadian companies that also trade on the NYSE. Their average debt-to-equity ratio is 0.52, which, combined to an average beta of 1.15, makes these... more

Stock symbol(s): GIL,MGA,SJR

Comparing America’s 3 Largest Advertising Agencies

The advertising environment is becoming increasingly competitive, leading more and more adverting and marketing companies to outsource their services. Companies with large internal advertising segments consider it more effective to hand their operations to specialized businesses so that the can remain on top of the competition and deliver strong results. In addition, advertising companies, being normally structured as corporations, they deliver strong dividend and have dividend yields that are above average compared to the industry. This article discusses three advertising and marketing companies, two mid-caps and one large-cap, which trade on the NYSE and the Nasdaq and have outperformed the market by more than 10% YoY. At the time of the writing, all three companies trade really... more

Stock symbol(s): IPG,LAMR,OMC

3 Dividend Growing Investors

The dividend yield is often a good indication of how much cash flow investors are getting for every dollar they invest in an equity position. The milestone of 3% is considered a high dividend yield. If you require a minimum stream of income for your investment, you can kind of secure your cash flow by investing in stocks that pay high and relatively stable dividend yields. This article discusses three small-cap and mid-cap independent investment companies that trade on the NYSE and the Nasdaq Composite Index. All three companies currently trade close to their 52 week high. Their average dividend yield is 5.66%, way above the milestone of 3%, and their average payout ratio is 85%. Given that the industry average payout ratio is above 130%, the average payout ratio of these companies... more

Stock symbol(s): ARCC,EVR,MC

Dividend Matchup: UPS vs FedEx

Package delivery companies are responsible for transporting a product from its point of origin to its destination. Also known as logistics companies, package delivery companies aim to deliver growth and profitability in a challenging industry that requires sharp strategic choices. The geographic coverage of transportation and logistics companies has the potential to reward strategic decision with a focus on outperforming market expectations. At the same time, the industry has low barriers to entry and intense competition, creating new opportunities to enter new markets and redefine existing business models. This article discusses FedEx and UPS, the leaders in the Transportation & Logistics Industry. Both companies have outperformed the NYSE Composite Index and the S&P500 YTD... more

Stock symbol(s): FDX,UPS

Large Pharmaceuticals With High Dividends

The U.S. pharmaceutical industry is highly concentrated with nearly 50 companies accounting for 80% of total revenues. The profitability of each company depends on the ability to discover, develop and sell new drugs. Typically, larger companies capitalize on their economies of scale in research and development while smaller companies effectively compete in drug specialization for the treatment of specific diseases and in partnerships with large drug manufacturers. This article discusses three large cap pharmaceuticals trading on the NYSE. Their average price is $65, with an average dividend per share $2.05 and an average dividend yield of 3.20%, in line with the average dividend yield of the industry. In the coming quarters, all three companies are expected to sustain strong... more

Stock symbol(s): ABBV,LLY,MRK

These Retailers Have A Foot In The Dividend Door

The retailing industry has been the first to endure the negative effect of an unstable macroeconomic environment that forces many retailers out of business. On the other hand, the U.S. Census Bureau reports that the total sales for the first quarter of 2016 (January through March) were up 2.8% YoY. For the coming year, retailers with optimized distribution systems and enhanced supply chains are expected to stay ahead of the competition as consumers expect greater products and faster delivery when shopping online. This article discusses two retailers that trade on the NYSE. Their average debt-to-equity ratio is 0.03 while their average beta is 0.64. Both metrics suggest financially healthy companies with effective debt management. Both deliver strong cash flows and dividends, with an... more

Stock symbol(s): DSW,FL

3 Top Utilities For Dividend Growth And Income

Generally, Utilities have much higher dividend payout ratios than their blue-chip peers because they have less room for expansion. Therefore, they pay a higher percentage of their retained earnings to their shareholders in the form of cash dividends. Although a payout ratio between 75% - 95% is not considered healthy, utilities tend to have payout ratios in this range as well as high debt-to-equity ratios. The reason why Utilities maintain such high payout ratio returning value to their shareholders is because they act as a monopolistic authority in their given regions or municipalities, thereby facing a low elasticity of demand. The general notion is that strong competition in Utilities is inefficient. This article discusses three utilities companies that trade on the NYSE. The... more

Stock symbol(s): D,SO,SRE

Conglomerates For Dividend Income

Conglomerates have diversified interests in different industries by owning a controlling stake in smaller companies, which they conduct business separately. Typically, companies that are structured as conglomerates have exposure in different sectors and thereby, their dividend yield may fluctuate, but it is steadily above the average dividend yield of the market. Moreover, due to their diversified interests, conglomerates can offset losses in one industry with gains in another, thereby diversifying risk and achieving strong financial results. This article discusses three mid-cap and large-cap conglomerates. All three stocks trade slightly lower than their 52wk high while two of them have outperformed the market and the NYSE Composite Index. Moreover, their average dividend yield is... more

Stock symbol(s): CR,DHR,LEA