The following article was provided by our guest author Richard from Dividend Investor. We publish the article because we think it contains much value for our readers.
High dividend yield stocks are stocks
that consistently pay a high dividend yield average of any chosen standard.
How can you choose high dividend yield
stocks?
- First you should decide your goal and
according to them do research on stocks by stock screener or brokerage web
sites.
- Then research the performance of the
company like their past few years’ achievements. Analyze the trend of market or
market price.
- Next step should be to look into the
dividend yield. Dividend yield is dividing the amount of dividend paid by the
price. The best dividend yield rate is from 5% to 10%.
- After that set the goal on the number
of shares, which we you want to buy. If you have more shares, you get more
dividends. Well, the number of shares is dependent on your available funds.
However, it is good to diversify the shares you are to investing in – may be
two or three companies.
Here I would like to share latest high
dividend yield stocks with my opinion:
Arlington asset investment (NYSE:AI): - It is a publicly traded
investment firm which acquires and holds mortgage related assets. It’s also
acquire residential mortgage securities issued by U.S. government agencies,
U.S. government sponsored agencies and private organizations. It has a low
trailing P/E ratio of 1.37, the payout ratio is 23.2% and dividend yield is
13.63%.
AT & T Inc. (NYSE:T): - it is a holding company provider
of telecommunications services in the U.S. and all over the world. Its serves
wireless communications, local exchange services and long-distance services.
Generally, it works in four segments: Wireless, Wire line, Advertising
Solutions and Other. It has P/E been 29.20, EPS IS 1.21 and dividend yield is
5.08%.
3M Company (NYSE:MMM): - It is a diversified global company that provides products in
different sectors like electronics, health care, industrial, consumer, office,
telecommunications, safety & security and other markets via coatings,
sealants, adhesives, and other chemical additives. This is showing improvement
in four major geographical areas: U.S., Asia-Pacific, and Latin America/Canada.
In 2013 it will prove beneficial in U.S., China and Japan. This is a good
company with a better future. It has forward P/E ratio is 13.52, PEG ratio is 1.51,
P/S is 2.31, P/B is 3.83, payout ratio 35% and annual dividend yield is 3% to
4%.
HCP Inc. (NYSE:HCP): - It is a fully integrated real estate investment trust (REIT)
serving the healthcare industry. It is the first health care company which is
selected in S&P 500 Dividend Aristocrats Index. Continuously for 28 years
its increase their dividends. It has P/E ratio is 25.73, P/B is 2.059 and
dividend yield range is 4 to 5%.
BCE, Inc. (NYSE:BCE): - It provides wireless, wire line, internet and television
services to residential, wholesale business in Canada. It has P/E ratio is
12.89, the payout ratio is 67% and dividend yield is 5.17%.
Besides these there are many companies
which have good dividend yield such as Altria Group Inc. (MO) dividend yield is
4.98%, Pembina Pipeline Corporation dividend yield is 5.56%, Permian Basin
Royalty Trust dividend yield is 4.20%, Baytex Energy dividend yield is 6%. Currently
the S&P dividend payout ratio is 37% with long term average of 50%.
In conclusion, investors should
carefully assess the high-yielding monthly distributions or dividends when they
choose stocks. The security has cash distributions or dividends that are
significantly affected by fluctuations in the prices of commodities, which
suggest that there is an elevated risk inherent in investing in these
securities.
Author Bio:
