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Annaly Capital Management, (NLY)
I have been comparing several of these Mortgage
Real Estate Investment Trusts and keep settling
with Annaly. They don't have the highest
dividend payout in their category, but at
over 15% it's just fine, thank you. Annaly
even manages the resources for other M-REITS,
so they certainly are held in high respect
by their peers. Their dividend seems to be
fluctuating recently, but I'm not yet concerned.
These M-REITS should remain stable for the
next couple of years as the feds have said
they will keep interest rates low, and for
these companies, the lower the better.
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AstraZeneca, (AZN)
'As is common among European stocks, AstraZeneca
pays a higher dividend in the first half
of the year and a lower dividend in the second.
To determine the annual yield you need to
add the two together and I find that to be
around 5.7%, but their yearly dividend growth
is averaging about 12%. Pharmaceutical companies
are rated by the "pipeline" of
drugs that are coming to market and drugs
that are about to lose their patent protection.
AstraZeneca seems to have fewer negative
events approaching than their competitors
primarily from buying additions to their
pipeline. We get a nice dividend to entice
us to take this risk.
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AT&T, (T)
AT&T has high yield of 5.9% and a 5 year
dividend growth rate of 5.4%. Telecom companies
with large wireless operations have great
cash flow.
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Bristol-Myers Squibb, (BMY)
This has turned into one of my favorite pharmaceutical
companies with a nice dividend of 4.1% and
has increased the dividend most years an
average of 2.4%. This isn't that exciting
a stock for the Pharmaceutical category,
which is a good reason to like it. Their
'pipeline' is adequate and they don't depend
on just one drug to stay in the clover.
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Conoco-Phillips, (COP)
This oil company is well-integrated and the
share price is somewhat dependant on the
price of oil. As the stock price rises, the
yield drops. COP has a relatively low dividend
yield around 3.7%, but they have increased
their dividend every year for over 10 years,
and the average dividend increase has been
around 25%. Having a low share price makes
this among the more affordable oil stocks.
Watch the price of oil and buy COP in the
dips.
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Intel, (INTC)
Intel makes the guts for most high quality
computers and notebooks. Their yield is a
relatively low 3.5% but their dividend growth
rate can be as high as 25%. They are swimming
in cash, have a low payout ratio, and appear
that they can pay and raise their dividend
for a long time. Some people think tablets
and Smart phones will hurt this market. For
now, their price is a bit low because of
those concerns, but Intel is large and smart
and shouldn't miss all of those opportunities.
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Kinder-Morgan Partners, (KMP)
Kinder Morgan pays a nice yield of 6.1% and
the dividend is growing about 6% a year.
This is a Master Limited Partnership (MLP)
in the business of transporting oil, natural
gas and other energy resources. As an MLP,
they have different rules than stocks or
funds. All of the revenues must be distributed
to the shareholders (partners) which also
means you are responsible for the partnership's
taxes. That really isn't a big deal. These
MLP's make money without any regard to the
price of oil or natural gas...they get paid
to use their pipelines.
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Leggett & Platt, (LEG)
It took me a long time to warm up to this
stock. They pay a nice dividend with a 5.6
% yield and that is growing at over 6% each
year. This company makes furniture and other
manufactured products and is well-positioned
to grow fast as the economy improves. In
the meantime, the dividend is relative easy
for them to pay and they have raised that
dividend each year for over 10 years.
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Plains All-America Pipeline, (PAA)
Plains All-American is better off financially
than most energy-sector Master Limited Partnerships.
They pay a large dividend of 6.1% and has
been growing that dividend every year at
an average of about 5%. Like Kinder-Morgan,
PAA is trying to grow by expansion and their
future looks good as long as the government
doesn't meddle with their tax structure.
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PPL Corporation, (PPL)
PPL is not my favorite utility, but its dividend
has been one of the most reliable, with a
small increase each year. Their dividend
has been in the 4.7% range. Their service
area is spread across widely separated sections
of the country, so local disasters have a
limited affect.
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Telefonica, (TEF)
Telefonica pays a big yield of about 8.2%
and has increased their dividend every year
for almost 10 years. The last increase of
the dividend was 27% but I don't think there
will be any increases, soon. As a mobile
phone operator they have big cash flow but
the reason this stock's price is low, and
therefore the yield is high, is that they
are based in Spain, a country that is experiencing
some financial trouble. The good news is
Telefonica's business is spread across many
other countries, especially the growing Latin
America market, so they seem to be punished
for Spain's down cycle without being a totally
Spanish business.
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Verizon (VZ)
Verizon is one the biggest US telecom companies
and also sports a high yield. They have lots
of cash coming in from wireless customers
and are sitting on one of the largest wireless
spectrum gold mines in the world. They have
a number of other communications products
besides wireless which are also doing well.
Verizon should benefit no matter which way
the next round of wireless decisions go at
the federal level. |
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DNP Select Income Fund, (DNP)
This Closed End Fund currently Yields 6.8%
and has paid the same distribution amount
monthly since 1997! They have a slightly
higher expense ratio and you need to pay
a premium to buy the fund, but who cares.
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Pioneer High Income Trust, (PHT)
This Closed End Fund currently pays a 9.7%
Yield and has paid the same distribution
since its inception in 2002. This fund chooses
from among the best lower-quality bonds,
mostly from US and foreign corporations.
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Western Asset Premiere Bond Bond, (WEA)
This Closed-End Fund pays a nice 9% yield
and has paid a growing distribution since
its inception in 2002. This fund holds a
secret. they invest almost 50% in "A"
or better rated bonds but is still classified
as a 'below-investment grade' bond fund.
That is partly true, but on average, Western's
holdings are much higher quality than most.
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American Capital Agency Corp. (AGNC)
This mortgage REIT has such a high dividend
that I only need a small investment to add
a lot to my income stream.
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BlackRock Global Opportunities Equity Trust (BOE)
This Closed-End Fund holds some of the biggest
corporations in the world. They pay a very
high dividend through a covered-call strategy,
which is risky, but keeps working.
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Duke Energy (DUK)
Through acquisition Duke will become the
largest utility in the US. Their dividend
has been growing lately and they should improve
through cost savings.
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Energy Income & Growth Fund (FEN)
I added this closed-end fund
to get the big
dividends of the MLP energy transport
companies
without the tax consequences.
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Enterprise Products Partners L.P. (EPD)
I like this MLP because they bought out their
managing partner and keep all the profits.
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First Energy (FE)
FE pays a nice dividend for a utility. What
they don't have in dividend growth, they
make up for by needing the fewest power plant
investments to fulfill new EPA regulations.
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HCP Inc (HCP)
I added this high dividend REIT based on
its focus on Health Care Properties and I
should have added more. Health keeps growing.
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iShares FTSE NAREIT Mortgage Plus Capped
ETF (REM)
I added this high-paying fund to invest in
a broad selection of REIT's. I keep it as
a hedge against one of big m-REIT's failing.
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iShares S&P US Preferred Stock Index
Fund (PFF)
This fund holds Preferred stocks from big
companies. The dividend is pretty high although
it varies from quarter to quarter.
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Kimberly-Clark (KMB)
They have been paying a nice enough dividend
which has been growing at a fairly high rate.
They have survived generic substitution well.
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McDonald's (MCD)
Mickey D's doesn't pay that large of a dividend,
but that dividend is growing faster than
most. The current economy should favor them.
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Vodafone (VOD)
This large European mobile phone provider
pays a big dividend, but they also hold a
big hidden value. VOD owns 45% of Verizon
Wireless.
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DIVIDEND ACHIEVERS:
This is the list of US stocks that have increased
their dividends every year for at least 10
years. If you limit your stock choices just
to this list you will be investing in companies
that focus on maintaining and increasing
their dividend and improving chareholder
value. There is an International Dividend
Achievers list as well, but I haven't found
a free online source of it.
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CLOSED END FUNDS:
This is where you can find Funds
that provide
high yields and reliable payouts.
They provide
a wealth of information including
how long
they have been paying distributions.
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ETF DATA BASE:
A fairly good source for finding
and researching
ETF's that pay good dividends.
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YAHOO FINANCE:
This is one of the best places
to get financial
information on all stocks, including
dividends,
payout ratios and other fundamentals.
Enter
your holdings in their portfolio
and you'll
also get headlines on all your
stocks.
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