Any income investor is aware that with interest rates being so low for so long, market prices for bonds and dividend stocks are likely to fall as the Federal Reserve raises interest rates.
But even after the Fed changes direction and begins raising the federal funds rate above the range of zero to 0.25%, where it has been locked since late 2008, rates are likely to remain quite low for a long time.
So the market prices of income-producing securities may not fall as much as many investors fear, or maybe they’ll stage a recovery after the hysteria of the Fed’s likely near-term policy change wears off.
High-growth momentum stocks are nice, but many investors these days are more interested in stability and dependable dividends.
If you’re an income-oriented investor, the attached list of high yielding dividend stocks is ideal for further research. Each of the stocks has a double-digit dividend yield with positive ROA and positive 5 year earnings growth forecasts.
Some of these stocks may be boring, some of the yields may not be thrilling and some may not have impressive earnings growth in their future.
But all of the 20 dividend stocks are worth a deeper look when it comes to preserving capital and making regular dividend payments. Check out the list below and sort by company, yield or dividend history.
Here is the list...
For those investors who love very high yields, I've created a screen of the highest yielding dividend stocks with cheap P/E'S and profitable positive earnings growth for the future.
These are my criteria in detail:
- Forward P/E under 15
- Dividend Yield Over 10%
- 5 Future EPS Growth Positive
- Positive ROA
- Debt to Equity Under 1
Attached you will find the 20 top yielding results.
Shipping stocks are still dominating the list. They are very small and suffer from a weakness in China - Shipping rates are very low and hit recently All-Time Lows. Since then, they strongly recovered.
Another good represented industry is the Mortgage Investment and REIT industry.
Here are the results...
It has been almost 7 years of growth and momentum leading the value in returns. This year we have seen significant capital move out of growth and into value. Value stocks are now getting back in favor.
If you are an investor seeking great value investments but you are not fully confident of buying small caps, you should consider mid cap stocks.
These tend to show up more undervalued opportunities than large caps and the companies are generally better understood and more stable then smaller companies.
Mid cap stocks should also be less volatile.
In this screen, I have stayed under a P/E ratio of 9 and a book value greater than the market value.
In addition, each of the stocks should have a solid capital finance ratio. The debt-to-equity ratio should therefore be under 1 while the company is profitable due to a positive return on asset.
Finally only growth makes sense in my view. That's also the reason why I'm looking for a positive 5-year earnings per share growth.
Most of these companies also pay great dividends which is always an attractive quality in a value stock. Mid cap stocks with good dividends that you can buy for cheap right now, what is not to like!
Here are the results...
