Mattel (MAT) Maintains High Yield

/in /by

Mattel announced today that the company will pay its third straight quarterly dividend of $0.31 per share. The dividend will be payable on September 21st with an ex-dividend date of August 27th. This maintains the 3.5% dividend yield on the stock MAT. Investors must own the stock at the close of trading the day before the ex-dividend date to qualify to receive the dividend.

Dividend Fundamentals

Mattel converted to quarterly dividend payouts in 2011. Previously the company paid dividends annually. It started paying dividends in 1990 and has raised its dividend for 3 consecutive years. Mattel has a three year dividend growth rate of 18% and a payout ratio of just 50%. The free cash flow yield is an exceptional 6.2%.

About Mattel

Mattel manufactures and sells children’s toys and products. The stock has been on a tear in the last 12 months rising over 24%. Mattel has a market cap of $11.6B and a P/E ratio of 15.6. The stock is ranked number 8 on our 100 best dividend stock list. For more information on Mattel and other consumer product dividend stocks visit our dividend consumer page.

Earnings News and China Provide Points of Interest this Week

/in /by

Last week was fairly depressing — until Friday, of course. On Friday, everyone suddenly decided they were feeling pretty good about things and stocks rallied. A lot. Good news in the form of financial earnings helped out, as well as speculation about China. And it also helped that US economic wasn’t horrible.

US economic data showed signs of slow, but sure, economic recovery. Jobless claims dropped again, albeit modestly, and wholesale prices edged up. Overall, wholesale prices for June were up 0.1%. Without food and energy, they were up 0.2%. The difference is attributed to drops in energy prices. Since there are those that think high energy prices have been one of things stymieing the economy, the fact that energy prices are easing is somewhat encouraging.

On tap for this week is more second quarter earnings news. Stocks reacted favorably to some of the financial stock news at the end of last week. One of the biggest pleasant surprises was JP Morgan Chase. The company posted better than expected earnings — even after the losses caused by the London Whale. Be watching for more earnings data this week, since it could influence the direction of the markets.

Even the recent LIBOR debacle was largely overlooked by the markets as bulls rushed to make up for days of gloom.

Will China Add More Stimulus?

Another consideration is China. There is speculation that China is ready to add more economic stimulus to its economy. The news was greeted with a measure of enthusiasm from those who are hoping that the Chinese can lead us out of the global economic doldrums. There are still concerns about China, though. News that China’s reserves aren’t expanding by as much as some worried. However, the recent interest rate cut by the People’s Bank of China, and expectations that China will do more to prop its economy, are helping the situation.

Europe has managed to move to the back burner for now. The German Constitutional Court is reviewing the latest suggested changes to the European Stability Mechanism (the bailout fund), and trying to decide if they jive with German law. The Court has so far refused to rubber-stamp the changes, and could throw up roadblocks in the efforts to form a tighter banking union in the eurozone.

For now, though, those issues are by the by. However, things could change rapidly. Investor attention has been held by Europe for months now; it’s likely that the recent break from obsessing about Europe is just that — a break. There are plenty of other hurdles to overcome, and the eurozone could easily move back into the spotlight.

4 High Yield Dividend Stocks Going Ex-Dividend July 16-20

/in /by

In terms of ex-dividend dates, next week isn’t very busy — at least not with high yield dividend stocks. There are some options, though. They are fairly solid, and they have somewhat mediocre dividend yields when compared with some of the exciting stocks that went ex-dividend earlier this week. However, the following for dividend stocks all have yields above 3%:

Comtech Telecomm (CMTL)

Ex-Dividend Date: July 18

Rather than providing telecommunications services, Comtech Telecomm is actually a manufacturer. The company designs and develops different products, as well as making them and marketing them. Comtech specializes in telcommunications transmissions, RF microwave amplifiers, and mobile data communications. CMTL has a dividend yield of 3.70% and a payout ratio of 74.00%. Since the company has only been paying dividends since 2010, there is no information on five-year average yield, or the three-year growth rate. There has been one consecutive dividend increae.

A. Schulman Inc. (SHLM)

Ex-Dividend Date: July 18

A. Schulman is all about the custom chemicals. The company specializes in creating custom compounds that can be used for a number of different functions, in a number of different industries. From antimichrobials to special nylon alternatives, A. Schulman offers designer materials and chemicals. The current dividend yield is 3.10%, with a five-year average yield of 2.90%. The three-year average dividend growth rate is 4.63%. The current payout ration is 44.00%. There have been five consecutive dividend increases, and SHLM has been paying dividends since 1990.

Maint Street Capital Corp (MAIN)

Ex-Dividend Date: July 18

Maint Street Capital Corp provides funding to middle market companies. For the most part, the investment firm specializes in long-term debt and equity capital. The companies MAIN works with span various sectors and industries. A lot of the funding is used for management buyouts, growth, refinancing, acquisition, and recapitalization. The idea is to provide alternative financing options. The current dividend yield is 6.70%, with a five-year average of 8.90%. The payout ratio is 91.00%, and the three-year average growth rate is 0.69%. MAIN has been paying dividends since 2007, and there has been one consecutive year of dividend increase.

Friedman Industries (FRD)

Ex-Dividend Date: July 18

Friedman Industries is a steel company that traces its roots to a business founded in 1939. The company specializes in the process and distribution of hot-rolled steel coils, as well as manufacturing and distributing steel pipe. The current dividend yield is 5.20%, and the five-year average yield is 4.90%. There is a dividend payout ratio of 39.00%, and a three-year growth rate of 392.71%. FRD has been paying dividends since 1990, and there have been no consecutive dividend increases.

3 REITs Maintaining High Yields

/in /by

Three different real estate investment trusts announced new dividend payouts. Each company has maintained a very high yield through recent years. Lets examine the dividend history and prospective growth of each REIT.

Hospitality Properties Trust (HPT)

Hospitality Properties announce a dividend of $0.45 per share that will be payable on August 22nd with an ex-dividend date of July 27th. This will be the company’s 12th consecutive quarterly dividend payout of $.45 per share since it suspended its dividend in 2009. Dividend growth has been lacking at the company which started paying dividends in 1995. The bright shining start for HPT is the 3 year net income growth rate of 15%. HPT has a dividend yield of 7.2%.

Here’s 10 year dividend history chart.

UMH Properties (UMH)

UMH Properties announced a dividend of $0.18 per share which will be payable on September 17th with an ex-dividend date of August 13th. UMH has a dividend yield of 6.4%. The company has been paying the same $.18 quarterly dividend since it cuts its dividend in 2008. UMH has a 3 year net income growth rate of 34%.

Below is a 10 year dividend history chart for UMH

CommonWealth REIT (CWH)

CommonWealth REIT announced a quarterly dividend of $0.50 per share payable on August 24th with an ex-dividend date of July 24th. Commonwealth started paying dividends to shareholders in 2010 and has not increased its dividend since it started paying dividends. We won’t show a chart for CWH, just picture a short flat line.

Let’s go REITs!

Each of these companies has been able to maintain its dividend but is showing no sign of dividend growth. Income is rising but dividends are holding steady.

Economic Concerns Once Again Dominate Markets

/in /by

Once again, economic concerns are dominating the markets. Last week, trading was a little stifled because of the mid-week break for the Independence Day holiday, but there was plenty of data for investors to chew over. And, indeed, after the end of the week we just had, there is plenty left to chew.

Central Bank Decisions

The European Central Bank cut its benchmark rate to 0.75% from 1%. Even during the global financial crisis, and the fallout, the ECB refused to cut rates to below 1%.  The decision to do so now is rather telling. Even with the concerns, though, ECB President Mario Draghi insists that there haven’t been discussions for quantitative easing. Spanish bond yields ended last week by shooting upward through the roof. Once again, sovereign debt is center stage in eurozone concerns.

The Bank of England didn’t cut its rate, but it did expand the asset purchase program. The BOE announced that it would add another 50 billion pounds to the program, using quantitative easing in an effort to stimulate the British economy. The economy in Britain continues to move at a sluggish pace, yet inflation is still a problem. BOE officials continue to try to balance the need for stimulus with a desire to keep inflation from running out of control.

And, in a surprise move, the People’s Bank of China cut its own rate as well. Signs of a slowing Chinese economy are damping hopes that the emerging market economy will lead the global economy out of the doldrums. Instead, there are worries that another global recession could be in the offing.

US Economic Data

While there was some decent news in terms of factory orders, US economic data continues to present a deteriorating picture. One of the biggest disappointments this week was the June non-farm payrolls. Even though the economy added 80,000 jobs, it was still short of the 100,000 expected by analysts. The news closes out a disappointing second quarter, with an average gain of 75,000 jobs each month, down drastically from the 226,000 average seen in the first quarter of 2012.

Concerns about the sluggish jobs market continue to weigh on the US economy, and there are very real concerns about what could be next. The US stock market, reacting to all this disappointing news, ended the week in a rout, and investors are trying to pick up the pieces this morning. What’s happening in Europe, as well as the release of second quarter earnings data from US companies are likely to dominate the markets this week.

4 Dividend Stocks with Very High Yields Go Ex-Dividend July 9-13

/in /by

When you are looking to build a dividend portfolio, there are those who suggest that you avoid choosing dividends with very high yields. After all, once you get beyond a certain point, you might be looking at a dividend stock that could be a little riskier. It’s possible that dividends will be slashed, or that the high dividend is there to make up for something else.

If you feel like taking a walk on the wild side of the dividend investing street, though, here are 4 dividend stocks with rather high yields going ex-dividend next week:

Cellcom Israel (CEL)

Ex-Dividend Date: July 9

Communications company Cellcom Israel offers a variety of solutions for individuals and businesses. As the name implies, CEL offers wireless services to its customers. The dividend yield is a ridiculously high 126.10%, and the five year average is 61.80%. The dividend rate is $6.26, and the payout ratio is 364%. The three year dividend growth rate average is -10.05%. There have been no consecutive dividend increase for CEL, and the company has been paying divdends since 2007.

Consolidated Comm (CNSL)

Ex-Dividend Date: July 11

It’s true that after seeing the dividend yield offered by CEL that anything seems a little low. However, telecommunications company Consolidated Communications still has a fairly high dividend yield, at 9.70%. The company offers TV, Internet, and phone services to residential and business customers. The five year average is 10.30%, with a three year dividend growth rate of 0%. The payout ratio is 221%. CNSL has been paying dividends since 2005, and there have been no consecutive increases.

Fifth Street Finance (FSC)

Ex-Dividend Date: July 11

Fifth Street Finance is a financial company that specializes in venture capital, and middle market buyouts. FSC has a dividend yield of 10.80%, and a payout ratio of 107%. The five year average is 9.40%, while the three year average growth rate is -4.08%. Fifth Street Financial has had one consecutive dividend increase, and has just very recently started paying dividends, in the mid-2000s.

ARMOUR Residential REIT (ARR)

Ex-Dividend Date: July 12

If you are looking for a little real estate exposure in your dividend portfolio, it might be worth it to consider REITs. The ARMOUR Residential REIT focuses on residential properties. ARR has been paying dividends only since 2010, so there isn’t information on the five year average, or the three year average dividend growth rate. The dividend yield, though, is 18.10%. The dividend rate is $1.20. There haven’t been any consecutive dividend increases.

RPM International (RPM) Sets Up For A Dividend Increase Next Quarter

/in /by

RPM is consistently one of the top rated stocks on our best dividend list because of its incredible dividend history and fundamentals. Today RPM announced that it will pay a quarterly dividend of $.215 on July 31st with an ex-dividend date of July 11th. This is the 4th consecutive quarterly dividend of $.215 from RPM.

For the past 5 years RPM has increased its quarterly dividend in the 4th quarter. We are expecting the same result this year as RPM continue to drive growth with solid earnings. Over the last few years the company has increased its dividend by about 5% per year. Using those numbers we can expect the annual dividend to go from $.8650 in 2012 to $.8850 in 2013.

RPM Dividend Fundamentals

RPM has been paying dividends to shareholders since 1969 and has increased its dividend for 39 consecutive years. The company has a 5 year dividend growth rate of 4.5% and a payout ratio of 55%. Over the last 3 years the company has increased its net income by 55% and currently has a cash flow yield of 4.14%. Even better than those solid numbers is the recent stock performance. Over the last 12 months the stock is up over 18%. Add in the dividend and the total return exceeds 20%. The solid dividend fundamentals and performance are what help RPM tie for the rank of #1 on our top 100 dividend list.

Here’s a look at RPM’s dividend history over the last 5 years:

RPM is a specialty chemical company that makes specialty paints, sealants, adhesives, coatings and roofing systems. Find more information about RPM and other basic materials companies in our basic materials dividend stock section.

Pfizer (PFE) Maintains Dividend and High Yield

/in /by

2009 was a disappointing year for Pfizer when the company cut its dividend by 50%. Since that cut Pfizer has been trying to repair its image with dividend investors and grow its dividend back to previous levels. Yesterday Pfizer announced that its dividend will stay stable in 2012 with another quarterly dividend of $.22 per share giving the stock a yield of 3.9%. The dividend will be payable on September 5th with an ex-dividend date of August 1st. To qualify to receive the dividend an investor must own the stock at the close of trading the day before the ex-dividend date.

PFE Dividend Fundamentals

Pfizer has a dividend yield of 3.9% which is lower than its 5 year yield average of 5.3%. The company has a 3 year dividend growth rate of 10% and a payout ratio of 68%. The company started paying dividends in 1901 and has increased its dividend for 3 consecutive years.

About Pfizer

Pfizer is a global bio-pharmaceutical company that manages a large portfolio of healthcare related services and products. The company operates in multiple segments including primary care, health products and Animal care. PFE has a P/E Ratio of 21 and a Market Cap of $171B. The stock is up 10% in the last 12 months and 5% so far in 2012.

Pfizer is not ranked on our top 100 best dividend list. To get more information about Pfizer or other healthcare stocks visit our healthcare dividend stock page.

Darden Restaurants (DRI) Shows Its Strength with Dividend Hike

/in /by

Darden Restaurants raised its dividend again for the 8th consecutive year today by announcing a new quarterly dividend of $.50 per share or $2.00 per year. The new dividend is payable on August 1st with an ex-dividend date of July 25th. This gives Darden a dividend yield of 3.4%. The dividend increase should come as no surprise to investors who are used to seeing the company boost its dividend in the 3rd quarter. This new dividend is a 16.3% increase over the previous quarterly dividend.

Darden Dividend Fundamentals

DRI has fairly solid dividend fundamentals. The 8 consecutive years of dividend increases and 3.4% yield are very attractive. So is the low payout ratio of 46 and the three year net income ratio of 8%. DRI also has a 5 year dividend growth rate of 25%. The only number holding DRI back from a higher DSO rating is its low free cash flow yield of just 2%, which is lower than its dividend yield. After this dividend increase it seems that management is still confident it its ability to drive revenue and pay the dividend.

About Darden Restaurants

Darden owns and operates many different restaurant chains like Red Lobster, Olive Garden and LongHorn Steakhouse. In total the company owns over 1800 different restaurants in the US and Canadian. The company has a P/E ratio of 14.45 and a market cap just over $6B. In the last 12 months DRI stock is up 2%. It is up 8.75% so far in 2012.

Darden is not one of the top 100 stocks on our best dividend stocks list.

Procter & Gamble Downgraded After Earnings Warning

/in /by

Hillard Lyons suspended its $77 price on Proctor & Gamble target today and cuts its rating from long-term buy to neutral. The firm said the downgrade was based on the company’s warning on its fourth quarter earnings results. PG said that the 4th quarter would be impacted by slowing growth based on negative impacts from foreign exchange rate changes.

Dividend Fundamentals

PG has a solid dividend history and is considered one of the more dependable long term dividend-paying stocks. Today’s downgrade will come as a disappointment to many investors. The company started paying dividends in 1891 and has increased its dividend for 58 consecutive years. It currently pays an annual dividend of $2.25 which gives it a yield of 3.4%, slightly higher than its 5 year yield average of 3%. PG has a payout ratio of 66% and a 5 year dividend growth rate of 10%.

Procter & Gamble has had flat income growth over the last 5 years which is what keeps it ranked #99 on our best 100 list. In fact it only makes the list because of the other solid dividend fundamentals and is one of few stocks on the list with flat income growth rate.

About Procter & Gamble

PG has a P/E ratio of 18.51 and a market cap of $165B. The stock is down over 7% in the last 12 months and more than 9% so far in 2012. Procter & Gamble makes packaged consumer goods products that are sold in 180 different countries. To find other consumer goods dividend stocks go here.