Articles About Dividend Investing

3 Biotech Companies that Remain Attractive

One of the fastest-developing industries in the financial markets is biotechnology. One of the biggest challenges that the biotech companies face is high R&D costs and the need for a steady revenue stream to finance their operating activities while waiting for FDA drug approval. This makes them heavily reliant on the public markets to finance the development and manufacturing of innovative medicines. On the upside, the biotech sector remains attractive for retail investors in spite of its high-risk. According to McKinsey, in December 2014, biotech companies accounted for the 20% of the entire pharma market with global revenues of $163 billion, while their annual growth rate was +8%, double than conventional pharmaceutical companies. This article summarizes three mid and... more

Stock symbol(s): BAX,BXLT,GILD,TECH

3 Dividend Tankers with Growth Potential

Last week, China unexpectedly devalued the Yuan in an effort to make the Chinese economy more competitive and boost its exports. The move of the Chinese Central Bank, although described as temporary, has shocked the global markets pushing stocks and commodity prices sharply lower and created a fear for global currency war that would destabilize more economies around the world. On the upside, small and mid-cap stocks that consistently pay a steady stream of income on a regular basis have become more attractive in such a distressed global financial environment with high exposure to risk. Especially, lower oil prices have increased the demand for imported oil from China, thus raising the spot rates for oil tankers. This article summarizes three small and mid-cap stocks that... more

Stock symbol(s): DHT,MATX,TK

High-Yield Dividend Paying Small-Caps

According to research done by TheRoyceFunds, 54% of the S&P Small-Cap 600 Stock Index have an average dividend yield 2.3%, almost in line with 2.4% of the S&P 500. The S&P 500 includes companies with an average dividend yield below 2%, whereas 38.5% of the 600 Small-Cap companies have consistently paid dividends for five straight years (at least). Furthermore, it is estimated that the average annual total return for Small-Cap Russell 2000 Index is 9.5% from 1993 to 2014, whereas the average annual total return for small-cap dividend payers is 11.2% versus 8.1% for the non-dividend payers over the same period. Below we summarize three high-yield dividend paying small-caps from different sectors. ... more

Stock symbol(s): CMC,DRAD,SCL

Financial Small-Caps with Consistent Dividend Payments

Historically, small cap stocks realize high returns but are also extremely volatile. For long-term investors who are not interested in double-digit growth every quarter, preferring a relative stability in earning potential, there are small-cap stocks in the financial sector that can meet their needs. Below is a summary of four small-cap stocks in the Financial Services sector. Based on their consistency in dividend paying, low volatility (average beta 0.85) and a low payout ratio (average 48.8%), all four stocks could be included in a growth portfolio. ... more

Stock symbol(s): HBAN,UBCP,UBSI,WSBC

Medium-Cap Utility Stocks with a Dividend Growth Potential

Evidence shows that low beta stocks with realistic P/E ratios can diversify a stock portfolio and generate growth dividends. Medium cap stocks may be less trendy than large cap stocks, but often they outperform their growth-oriented peers. This happens because growth is not fail-safe in a volatile market. There are three factors that one should look at when selecting a dividend paying stock. The first factor is the payout ratio, which suggests how well a company’s earnings can support its dividend payments. The lower the payout ratio, the more guaranteed the dividend. However, payout ratio should be evaluated in relation to EPS. The second factor is the 52-week high and low range. There is an inverse relationship between the stock price and... more

Stock symbol(s): FE,GAS,WGL

Mortgage REIT vs Equity REIT Dividends

Introduction Investors' portfolios have witnessed a paradigm shift in variables. The conventional investment instruments such as bank deposits, Certificate of Deposits (CDs) and bonds have been replaced with high paying dividend instruments. Of-late REIT instruments have seen a lot of traction of investors. This is solely because of the improving housing market that has lifted investor sentiment to a new high. The dividend yields of a couple of REITs are in the double digits. Seeing such a performance, it is quite natural for an investor to get attracted towards such an instrument, especially considering the fact that the interest rates are at record low of 1%. Mortgage REITs versus equity REITs REITs can be divided in two... more

Stock symbol(s): AGNC,EPR,HPT,NLY

3 Small-Cap Dividend-Paying Healthcare Stocks Compared With Pfizer

Investing in dividend paying stocks is an ideal approach to turbo charge the stock portfolio and also to buffer oneself against the vagaries of stock movement. Choosing a stock from a mature sector is a good idea, as the valuations would not be too high and there would be future stable growth. One such sector is healthcare. The healthcare sector consumed an average of 9.3% of the GDP across the OECD countries as a whole. Within the US this is even higher at 17.7% and it is in double digits in most of the countries, including The Netherlands (11.9%), France (11%), Germany (11.3%) and so on. There is ample scope of future growth in this sector, because of an ageing population requiring higher expenditure on healthcare vis-à-vis other sectors. Below are some stocks that might be... more

Stock symbol(s): PETS,PFE,PMD,VIVO

AT&T and Verizon Continue to Impress Dividend Investors

As the current earnings season approaches the halfway mark, investors continue to evaluate their holding positions to see whether they should tweak their portfolios. This season has not been the best for large companies like Google (NASDAQ: GOOG), IBM (NYSE: IBM) and Bank of America (NYSE: BAC), since they all missed Q1 estimates. Now analysts predict that the S&P 500 will post a per share income of about $27.50, compared to the initial prediction of $27.60 for Q1. However, dividend investors could still smile, especially those investing in the telecom industry. While the technology sector so far has seen 5 out of 15 companies miss Q1 estimates, giant telecommunication companies like AT&T (NYSE: T) and Verizon (NASDAQ: VZ) continue to pay a... more

Stock symbol(s): T,VOD,VZ

Three Healthcare Stocks With Compelling Dividend Yields And Growth Rates

The healthcare sector offers one of the best opportunities for investors. This is because health is not a luxury, and for some people it is a constant expense in their budgets. Over the years, several companies have joined the market in different capacities and with various distinct target markets. While biotechnology companies are considered high reward speculative opportunities, large drug manufacturers like U.S.A’s Johnson & Johnson (NYSE: JNJ) and U.K’s GlaxoSmithKline (NYSE: GSK) offer stability and continuous payout in terms of dividends. Over the last few years these two, along with Baxter International (NYSE: BAX), have shown resilience in their quest to grow dividends and maintain compelling yields. Now,... more

Stock symbol(s): BAX,GSK,JNJ

Three Dividend Kings in the Technology Sector: Which is the Best Pick?

Investing in dividend stocks is never as straight forward as it may seem at times. There are key factors that an investor needs to consider before buying a stock that paid an enormous dividend to shareholders during the previous campaign. This report assesses three dividend kings with yields of at least 10% in the technology sector. It also identifies some factors crucial to choosing the best dividend stock regardless of the attractive dividend yields that some may boast. Windstream Holdings Windstream (Nasdaq: WIN) is a telecommunications service provider based in the U.S. The company provides communication and technology solutions to U.S customers. Some of its business involves the provision of managed services, cloud computing services and broadband, to... more

Stock symbol(s): SFUN,VIP,WIN