TopYields

4 High-Yielding Regional Banks

Regional banking stocks have been long known as payers of dependable dividends. Their resilience even during the most severe financial distresses, such as the 2008-2009 financial crisis, testifies to their ability to pay and even grow dividends through all economic cycles. As the economic growth is expected to accelerate in the second half of this year, the outlook for regional banks is improving. A higher demand for consumer and commercial and industrial (C&I) loans, improving loan quality, and prospects for higher net interest margins bode well for these banks. For some, the improvement will be a progression from last year’s strong operational performance. SNL Financial, a business intelligence service provider with a particular focus on the financial industry, has... more

Published Mon, 13 May 2013 09:30 CET by TopYields.nl

Stock symbol(s): BKU,CBU,CFR,CHCO

U.S. Jobs Recovery A Good Sign for These Dividend Payers

The U.S. jobs market has been on a bumpy and slow path to recovery. However, the latest U.S. payrolls data for April 2013, released by the Bureau of Labor Statistics, contained some good news. Payroll jobs increased above economists’ estimates, although the pace of job gains remains tepid at best. The upward revision of the employment gains in February and March –from 236,000 to 332,000 new jobs created in February and from a measly 88,000 to 138,000 jobs created in March– painted a picture of a stronger employment recovery in early 2013 than previously thought. What’s more, the unemployment rate continued its slow but steady decline, falling by 0.1 percentage points to 7.5%, its lowest since late 2008. The outlook is likely to continue to improve in the spring and... more

Published Mon, 06 May 2013 10:00 CET by TopYields.nl

Stock symbol(s): ADP,CDI,KELYA,MAN,NSP,PAYX,RHI

5 Prospective International Consumer Staples Plays Paying Decent Dividends

Stocks of consumer staples companies are generally recognized as defensive plays with low volatility and low correlation of returns relative to those of the overall market. Representing the companies with primary operations in food, beverages, tobacco and other household items, the consumer staples stocks are attractive due to the non-cyclical nature of their underlying business, which exhibits a tendency to do well in both good and bad times. Historically, the sector has offered slow and steady growth, and has paid respectable dividends. However, now, growth opportunities in international markets have invigorated the earnings growth of many consumer staples companies, with particularly robust growth by companies with significant or rising exposures to emerging markets. In fact, the... more

Published Mon, 29 Apr 2013 09:30 CET by TopYields.nl

Stock symbol(s): ABV,AMBV3.SA,AMBV4.SA,BATS.L,DEG,DELB.BR,DEO,UL,ULVR.L,UN,...

Risks and Opportunities in Waste Management Dividend Stocks

There are opportunities to earn respectable yield in waste management stocks, however investors need to be highly selective. While the overall industry earned $60 billion in revenues last year, the industry earnings were under pressure due to restructuring and acquisition charges, higher operating costs, and weak recycling prices. However, the outlook has now improved, and remains optimistic for the long-run. For example, TechNavio, a research and advisory arm of the London-based Infiniti Research Ltd., forecasts that the U.S. solid waste management market will expand at an annual growth rate of 3.4% through 2015. The rebounding residential fixed investment, driven by the housing recovery, is currently the key driver of U.S. municipal solid waste volume and pricing growth. Over the... more

Published Mon, 22 Apr 2013 11:00 CET by TopYields.nl

Stock symbol(s): BIN,CVA,ECOL,RSG,WM

5 Dividend-Payers with Lower Credit Risks than U.S. Treasuries

When it comes to credit risk, U.S. Treasuries tend to represent the safest of investment instruments. This means that the cost of insuring U.S. Treasury debt against the possibility of default is lower than the cost of insuring credit obligations of other insurers, including corporate debt, with the cost represented in terms of spreads on credit default swaps (CDS). However, there are corporations with an impeccable record of financial stability, earnings growth through different business cycles, and consistent dividend payments that are considered less risky than U.S. Treasuries in terms of a probability of default or some other adverse credit event. This lower credit risk implies CDS spreads below those of the U.S. Treasuries and thus the lower cost of insuring the high-quality... more

Published Mon, 08 Apr 2013 09:00 CET by TopYields.nl

Stock symbol(s): AEP,CMCSA,JNJ,SWK,UNP

Risks and Opportunities for Long-Term Dividend Investors in Global Telecoms

Defensive consumer staples and healthcare stocks have been the primary drivers of the U.S. market’s rally so far this year. These sectors generally consist of non-cyclical companies that are known as consistent dividend payers over the long-term. Also faring well have been the two U.S. telecom giants, AT&T (NYSE: T) and Verizon Communications (NYSE: VZ), which have traditionally paid the highest dividend yields among the Dow Jones Industrial Average (DJIA) constituents. However, around the world, except most notably in Canada, the telecom sector operators, traditional cash cows and defensive dividend payers, have performed quite poorly. The worst hit are European telecoms, which, overburdened by... more

Published Mon, 08 Apr 2013 09:30 CET by TopYields.nl

Stock symbol(s): 0941.HK,AMX,CHL,DCM,NTT,RCI,T.TO,TU,VOD,VOD.L

Falling Yen and Euro a Boon for These 5 Dividend Stocks

Falling currency values can enhance companies’ international competitiveness and export potential, thereby boosting business sales and EPS. Due to rising exports, the trend is also beneficial to GDP, which in turn further improves the operating environment for these firms. According to Financial Times, it is a general “rule of thumb” that a “10% drop in the Euro’s trade-weighted value will prop up Eurozone’s economic growth by slightly less than 1 percentage point, with the effect starting to be felt after six months.” Over the past few months, there has been a major depreciation in the value of the Japanese Yen and a decline in the value of the Euro relative to the trade-weighted basket of currencies and especially the U.S. dollar. Since October... more

Published Mon, 01 Apr 2013 20:00 CET by TopYields.nl

Stock symbol(s): GE,HMC,PHG,PHIA.AS,SAP,SAP.DE,SAN.PA,SI,SIE.DE,SNY

The REIT Elite: Top REITs for the Long Haul

In its August 2012 issue of the “REIT Outlook”, titled The REIT Elite: Comfort Food for Investors, Chilton Capital Management identified a group of 11 REITs that represent the top of the crops in the REIT industry. These companies are “blue chip, core quality holdings” or “sleep at night, confidence-inspiring companies” “investors should buy for (their) grandparents, parents, and children.” The 11 REIT Elite members, on average, have posted superb cumulative total returns over the past decade, outperforming their respective benchmark, the MSCI REIT index, more than threefold over that period. The REIT Elite members, boasting some of the most flexible balance sheets in their industry, have a proven earnings power over long-time periods. In... more

Published Mon, 25 Mar 2013 12:00 CET by TopYields.nl

Stock symbol(s): AMT,AVB,BXP,EGP,ESS,FRT,HCP,PSA,SPG,TCO,VTR

Auto Parts Industry Driving In The Dividends

The auto parts manufacturing industry in USA has an annual revenue of around $180B, and consists of approximately 4,000 companies. Based on the modest recovery in the US economy, and also the continued low interest rate regime, the auto sales are expected to grow at a high rate in the next two years. As consumer confidence grows, the uptrend is supported by demand both from households and businesses. Importantly, low cost finance is helping auto makers increase their pricing power as they can afford to reduce discounts which were adversely affecting their margins. As per the Global Auto Report of March 6, 2013, sales in North America are expected to increase from 17.07M units in 2012 to around 18.23M units in 2013, a 6.8% rise. This continued vigor since 2010, augurs well for... more

Published Tue, 19 Mar 2013 10:30 CET by TopYields.nl

Stock symbol(s): ALV,GNTX,GPC

5 Canadian Value Stocks Paying Dividends

Empirical research by professors Eugene Fama from the University of Chicago and Kenneth French from Dartmouth’s Tuck Business School, has concluded that value stocks have a tendency to outperform growth stocks over long periods of time. In fact, between 1927 and 2011, small cap stocks outperformed large-cap stocks and value stocks outperformed growth stocks. Last year alone, based on the Fama-French research portfolios, small-cap value stocks beat small-cap growth stocks by whole 15 percentage points, whereas large-cap value stocks outperformed their large-cap growth peers by 8.7 percentage points. Value tilts in portfolios have proven to increase returns over time. (Still, investors should be aware that past performances are not guarantees of future results). There are... more

Published Mon, 18 Mar 2013 10:00 CET by TopYields.nl

Stock symbol(s): AGU,AGU.TO,BNS,BNS.TO,IMO,IMO.TO,MG.TO,MGA,SJR,SJR-B.TO