13 Stocks With Dividend Yields Over 10%

I know you like dividends and can't wait to receive the next payment from your favorite company. 

Dividends are great but most of the dividend stocks don't give you high amounts of cash into your pocket.

Why don't we look for stocks with very high yields? 

I talk about dividend yields in the double-digit yield range, 10 percent or more on a yearly basis. That's possible.

Sounds great? Yes for sure but those dividends often include a great risk of being reduced in the near future.

Below are 13 stocks with very high dividend yields (over 10 percent or more). I've compiled only stocks from the U.S. with a higher market capitalization in order to keep the big risks out.

13 stocks with yields over 10 percent are... 

What Is The Right Dividend Yield For Southern Copper (SCCO)?

One of my readers asked me a good question about my latest screens. Here is what he wrote:

“I am new at this and trying to learn. Your site is very helpful. From your post:

41 Top Yielding Stocks with Ex-Dividend Date In May 2013

I do not understand the reported yield for Southern Copper. Most all sites I see report dividend 2.42%.

ARR	ARMOUR Residential	13-May	30-May	17.09
HRZN	Horizon Technology Finance	16-May	17-Jun	13.91
SCCO	Southern Copper	6-May	21-May	11.75
FULL	Full Circle Capital Corporation	29-May	14-Jun	11.73
FSC	Fifth Street Finance	13-May	31-May	10.87
STB	Student Transportation Inc	29-May	17-Jun	8.88

Thanks“

That's an error in my screening database. Sometimes it needs time to update the yield lists with current dividend payments. If a company pays a much lower dividend in the future or they paid special dividends, the yield explodes but on the new basis its a normal value. Here is the dividend history of SCCO: Long-Term Dividend History of SCCO. I think the $2.75 extraordinary payment causes the error.

SCCO has a yield of 2.42% based on a $0.8 annual dividend.

If you like you can also read my post about "How to predict the future Dividend".

If you have any further questions, to not hesitate to contact me. If you like my answer, please give me a Facebook Like. You can also subscribe to my free e-mail list or follow me on Facebook or Twitter.

5 Dividend Stocks With Rising Yield

The dividend yield is a very important metric that is used by investors while evaluating dividend stocks to buy. When you purchase a stock to add it in your dividend portfolio, you must look for the current yield. It's more than just a purchasing indicator. The dividend yield is calculated by dividing the current annualized dividend payout per share by current stock price. It's helpful to determine the entrance price and the exit price when the times come.

Here are the five dividend stocks that continuously raising their dividend yield.

Century Link (NYSE: CTL) –

Century Link, Inc. is a multinational communications company. It provides communications and data services to residential, business, governmental and wholesale customers and also long distance services. Its approximately 45% of total employees are represented by two labor unions. The company’s segments include Regional markets, Business markets, Wholesale markets and Savvies operations.

The company has a market capitalization of 22.75 Billion, EPS is 1.25, P/E ratio is 29.15 and the dividend yield is 5.95 percent at the annual dividend payout of 0.54.

Verizon Communications (NYSE: VZ) –

Verizon Communication Inc. is a holding company which provides communications, information and entertainment products and services to its consumers, business and governmental agencies. The company has two segments: Verizon Wireless and Wireline. Verizon Wireless segment include wireless voice and data services and equipment sales which are provided to consumer across the United States. Wireline segment provides the products and services related to voice, internet access, broadband video and data, internet protocol network services, network access, long distance and other services.

It has a market capitalization of 141.12 Billion, EPS is 0.31, P/E ratio is 159.45 and the dividend yield is currently 4.17 at the annual dividend payout of 0.51.

Ford Motor Company (NYSE: F) –

Ford Motor Company is also known as Ford. This is an American multinational automaker that produces cars and trucks. The company and its subsidiaries also engage in other business, including vehicles. It is operating in two sectors: Automotive and Financial services. The automotive sector includes ford North America, Ford South America, Ford Europe and Ford Asia pacific Africa. The financial services include Ford Motor Credit Company and other financial services.

It has a market capitalization of 50.20 billion, EPS is 1.42, P/E ratio is 8.99 and the current dividend yield is 3.12% at the annual dividend payout of 0.10.

General Electric Company (NYSE: GE) –

General Electric Company is an American multinational diversified technology and financial services company. The company operates in more than 100 countries. Its products and services range are from aircraft engines, power generation, water processing, and household appliances to medical imaging, business and consumer financing and industrial products.

General Electric Company has a market capitalization of 239.78 billion, EPS is 1.39, P/E ratio is 16.61 and the dividend yield is 3.30 percent at the annual dividend payout of 0.19.

ENSCO (NYSE: ESV) –

Ensco plc. Is a multinational oil and gas service company and is a provider of offshore contract drilling services to the international oil and gas industry. Its customers are from national and international oil companies. There are 7,000 employees and annual revenue in the $2.3 billion range. The company is publicly traded on the New York Stock Exchange with the symbol ESV.

The company has a market capitalization of 22.05 billion, EPS is 5.24, P/E ratio is 11.22 and the dividend yield is 3.40% at the annual dividend payout of 0.50.

Bottom Line –

These are the top solid stocks that are continuously raising their yields.  A dividend can be paid by any company but the best can grow distributions for every year. Those companies that have a solid history of increasing their dividends each year are a good place to start investing. To start your search for best dividend stocks you should consider P/E ratio, current yield and payout ratio. These will help you to maximize your purchases by investing in value companies.

For more information regarding dividend stocks data you can visit the site Dividend Investor.

Reader Q&A: How To Discover The Dividend Yield And How To Predict The Future Dividends

I’ve recently received an e-mail with some really valuable questions inside. Below is his mail:

“Dear Tom and Hans,

Thank you for presenting many good articles and information on dividends.  Your information has already helped me make a good pick on NTI.

I have questions about 2 stocks that you mentioned in your articles - VIP and AZN.

For VIP, your article lists a yield of 22.76%, and NASDAQ.COM lists 26%. But MSN.com lists it at 6.6%, Yahoo lists it as $2.72 (22.2%), while Motley Fool lists it as $2.72 (5.5%). I find this quite confusing.

 

Also for AZN, your article lists its yield at 16.73, NASDAQ.com lists 8.29%, MSN.com lists it at 6.1%, Yahoo lists it at $3.80 (8.30%), while Motley Fool lists it as $3.80 (6.1%).

For VIP, form the NASDAQ site, I see that they made 3 payments in 2011, and 2 payments in 2012.  The amounts are not consistent. So it's hard to predict the yield.

For AZN, I see from the NASDAQ site that their last payment was on 2/13/13 in the amount of $1.9.  If I multiply 1.9 by 4 then divide by today's stock price of $46.5, I get a yield of 16.5%, which is close what your article has for AZN.  However, AZN seems to only pay every February, and then make a payment that is about 40% to 50% of that in August of the same year.

I would appreciate it if you can clarify this. Thank you."

These are very good questions and I like to answer them all as good as I can.

First of all, there are hundreds of screeners outside and several deliver different results. It mainly depend on the database they use. If a company pays a special dividend or the shares were split, they have an extraordinary high yield. I personally use the yahoofinance and googlefinance tools for a quick update because they have a good database for international stocks. In addition it could make sense to look at the tools from Bloomberg and Reuters.

VIP – VimpelCom: If you have some doubt about the dividend history and the payment policy, you should go to the investor relation homepage of the company. On the section dividends you can find more information. They say:

“It is the Company’s intention to pay a dividend which develops substantially in line with the development of its operational performance. The Company aims to pay interim and final dividends annually in cash.”

..

“…the Company aims to pay out a significant part of its annual operating free cash flow to its shareholders in the form of dividends. Operating Free cash flow is defined as “Net Cash from Operating Activities minus CapEx”, and can be derived from the consolidated group financial statements. The group aims to pay out at least USD 0.80 per share per year for the period 2012-2014 assuming not more than 1,628 mln common shares are issued and outstanding. The company will plan to pay the annual dividend in two tranches. The first tranche will be an interim dividend paid during the second half of the year. The second tranche will be the final dividend that will be paid out following the annual results announcement.”

I am not in detail with the dividend policy of VIP but it seems more complex on the first view. I would calculate with a maximum dividend of USD 0.80 this year. That’s a yield of 6.67 percent. But for more details, you should contact the investor relation department of VIP. They can tell you more because they are closer to the matter.

AZN – AstraZeneca: Is a British drug company. Normally, British stocks pay two interim dividends a year. But there are also some with quarter dividends. Others are on a switch. The investor relation section of the homepage says:

“Dividends will be paid twice a year, with a greater proportion paid as a second interim.

First interim: announced end of July and paid in September

Second interim: announced end of of January/beginning of February and paid in March”

They will pay USD 1.90 on March 18, 2013. The ex-dividend date was on February 15, 2013. Last year AZN paid an interim dividend of USD 1.95. You can also find more information in the latest full year presentation. The company plans no share repurchases and wants to follow a progressive dividend policy compared to the recent fiscal year (last year dividend was $2.80). I would calculate with a flat dividend of $2.80. That’s a yield of 6%.

In general, when you are in doubt about the future dividends because your target company has no credible dividend history and earnings are very cyclic at high debt levels, do not hesitate to scout for a latest statement by the management team. If there is no statement, you should contact the investor relation department of the company in order to get more details. They will tell you the public statement of the dividend in a very short manner. But be careful they often tell to pay a high dividend because they don’t want to lose investors but they needed to cut dividends because of the business model and capital needs. In the end it’s the view of the investor that matters. He discovers the possibility for a flat dividend, a hike or even a cut.

I hope my view helped you to understand how you should proceed by estimating the next dividends. If not you can leave a comment on my Facebook-Page. I always try my best to help others.

Tom