Three Types of High Yield Stocks

“So what are you waiting for ? Put some high yield into your portfolio and boost your income performance today.”

Some people are so afraid of High Yield Stocks that they shy away from them. The end result being that they have cost themselves thousands of dollars in potential income.

The thinking goes because most of the blue chips only pay 2-3% in dividend yields and the average for the S&P 500 is around 2.5% that anything beyond that is “High Risk.”

Being prudent and cautious in the investing world is a good trait but come on folks, use a little bit of common sense also ! Why don’t “Blue Chip” stocks pay higher dividends then? The main reason is because these stocks are highly desirable and the demand for the stock drives up the stock price and the higher the stock price, well it cause the yield to decline. Another factor is that these behemoths are for the most part very mature and as such grow slower that the younger, smaller and more nimble companies. There really is no comparison.

There are basically three types of high yielding stocks:

  1. They are in naturally higher yielding sectors. Example of these are REITs, MLPs, or BDCs. All sectors known for paying out higher yields. Other examples are Tobacco stocks, and communication stocks, think Phillip Morris, AT&T, and Verizon.
  2. Stocks that are in sectors that for no reason of their fundamentals have found themselves in an “out of favor” scenario with investors. Now admittedly you may want to take a very close look at these stocks first, but this is where you can usually pick up some bargains and buy stocks at higher yields than normal. An example is when a whole sector of stocks are out of favor for one reason or another. An example is tobacco  stocks. At one point everyone thought for sure tobacco was going away but the brave souls that stepped up and purchased the stocks are much wealthier for having the guts to buy them. Another are was the coal stocks, I myself saw 50 to 150% gains on these stocks because everyone convinced themselves that coal stocks were doomed. (And they might be in the very long run, but short term I knew coal could not go away over night) Just a little common sense and you could see how impossible and impracticable it would be to replace coal plants. Things like this takes years and decades to play out.
  3. The third type of high yielding stocks are the ones that are out of favor because of their poor company fundamentals. These of course are the stocks you want to avoid at all costs if you can. Leave the purchasing of these stocks to speculators and gamblers because you will not receive warning before they go bankrupt and rest assure the bigger players will always get out ahead of you and you will be left with nothing but memories.

So in my  opinion it is not only okay to seek out higher yields it is highly desirable. Even when I am purchasing “Foundation Stocks” and all things are equal I ALWAYS pick the stock that has the higher yield. Even a quarter or a half a percent can make the world of difference over a long period of time.

When purchasing stocks keep in mind your desired total yield for your portfolio. If you desire a 10% overall yield for your portfolio then seek out stocks that are at or near that yield. But when doing doing keep in mind why is it at that high of a yield. Is it simply because of a sector selloff  because there is a temporary factor that is causing the sell off? Is the stock in a normally higher yielding sector such as a BDC (Business Development Company) or a REIT (Real Estate Investment Trust ) ? Or the one you  have to be concerned with – because of the companies underlying fundamentals.

So bottom line – I don’t have any qualms about investing in higher yielding stocks but I am very careful and selective about it. It takes a little patience and a little more effort but the reward is certainly worth it. For an example say you have a portfolio producing 3% in income and you can push that up to 6% – well, look at the results:

$100,000 x 3% = $3,000 per year or $250 per month.

If you double that

$100,000 x6% = $6,000 per year or $500 per month.

And triple :

$100,000 x9% = $9,000 per year or $750 per month.

Now which one would serve you better? Personally I would choose the $750 per month in income ! Yet, very few do, because they have the misguided illusion that they will lose their money if they even attempt to invest in higher yielding stocks. In reality it is costing them big time not to invest at least a portion of their portfolios in higher yielding stocks.

I also want to briefly touch on one of the arguments against high yields. Many will argue that the stock cannot possibly sustain that high of a dividend. Well I have been doing this for many years now, and I can attest that most of the stocks I pick do in fact sustain their yields. One of my reasoning’s was that even if a particular stock cut it’s dividend 50% say from 9% to 4.5% it is  still a higher yield than the 3% stock ! Sure I have had a few disappointments with my methods but I am not married to the stocks. When a stock disappoints me I simply sell it and replace it with another stocks that has my desired yield. In many cases they are replaced with a yield that is even better than the original stock.

If this seems like something you would like to try for yourself but you are scared then what I would suggest is that you open a brand new brokerage account and use it to experiment  with. In this way you can limit your risk and it will give you a clear indication as to whether or not you can make it work for you. I would suggest picking maybe 5 stocks at most in a couple different sectors.

A sample pick of stocks might be:

  1. Whitestone REIT (WSR) – 10% – REIT
  2. Newtek Business Services (NEWT) – 9.1% – BDC
  3. Omega Healthcare Investors (OHI) -7.3% – REIT Senior and Assited Living
  4. Starwood Property Trust (STWD) – 8.88% –  REIT Diversified
  5. Vector Group (VGR) – – 7.64% – Tobacco & Real Estate

Note: Yields effective – May, 2017

So what are you waiting for ? Put some high yield into your portfolio and boost your income performance today.

 

 

 

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In The Spotlight Vector Group

“Vector group has a relatively high Dividend yield, usually well over 7%”

The Vector Group Ltd. (VGR) is one of my favorite stocks but most don’t seem to appreciate it like I do.

You see Vector Group is one of those hated Tobacco companies. No, I don’t smoke, but this being a free country and somewhat of a free world I believe people have the God given right to enjoy their short time here on earth as they please as long as they do not harm others or infringe on others rights to pursue their own happiness. In other words I prefer to live and let live. I know very well that many of you will disagree with me and that’s okay but I doubt you will ever change my mind. I know, smoking is horrible and yes it kills people but so do a multitude of other things. In fact I am willing to bet that most of the people that hate tobacco stocks have a least a couple of vices of their own.  Anyway I believe I have made my point so I will not pursue this any longer.

There are also some that believe it is a dying industry and I can’t argue much there. Certainly as people become more educated as to the adverse effects of tobacco smokers are on the decline. Let’s have a look at what Vector is all about as a company.

Vector Group is the fourth largest Tobacco Company in America. It was founded in 1873 , one hundred and forty four years ago! It’s brands are Pyramid, Grand Prix, Liggett Select, Eagle 20’s and Eve. It’s brands are considered the discount brands in the tobacco industry. Last year its tobacco products had earnings (EBITDA) – ( Earnings before taxes)  of just under $270 Million dollars.

What many people don’t realize though is that Vector Group also engages in the Real Estate business. It’s Real Estate business is called New Valley. New valley owns a broad range of real estate properties and owns over 70% of Douglas Elliman Realty. It is the largest residential real estate brokerage firm in New York city and is the fourth largest firm in the United States with 90 offices and over 6000 agents. It also through its alliance with Knight Frank, has a network of over 400 offices in 55 countries with over 22,000 real estate agents. In addition it is also involved in property management services, title and settlement services and relocation services.

Performance :

If you Invested $100 in 2005 your return would be:

  • S&P 500 – $ 240.1
  • S&P Midcap – $276.0
  • Vector Group (VGR) -$ 558.6 !

Source : VGR Investor Relations

Okay, so now for the good part ! The investor stuff !

Vector group has a relatively high Dividend yield, usually well over 7%, and for most that would be sufficient but in addition to its great yield it also pays a “Stock Dividend” of 5% which means that if you own 1000 shares you receive an additional 50  shares of VGR stock !

There has been many articles as to why VGR cannot sustain their Dividend but it has managed to do so since 1995. Have a look for yourself at it’s Dividend History!

Vector Group Dividends

Now of course history is not indicative of future performance or results but as you can see the history is great.

Is it a little risky ? Compared to many stocks yes but compare to most – no. The rewards can be great for those that dare. I have owned this stock for two years now and continue to add on dips. It is one of my largest holdings. I look forward to receiving the dividends each quarter and I have a special glimmer in my eyes come September each year looking for those stock dividends which helps to increase my share count even more!

Looking for more stocks like this one ? Then you may want to check out Southside Bancshares

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In The Spotlight – Main Street Capital

I especially enjoy the “special dividend” each December. It feels like they are sending me a Christmas present of cash !

Main Street Capital (MAIN) is considered by many to be the the best of breed for Business Development Companies (BDCs).

Main Street Capital provides long term debt to middle market cap companies. According to a recent press release:

”  Main Street’s portfolio investments are typically made to support management buyouts, recapitalizations, growth financings, refinancings and acquisitions of companies that operate in diverse industry sectors.  Main Street seeks to partner with entrepreneurs, business owners and management teams and generally provides “one stop” financing alternatives within its lower middle market portfolio.  Main Street’s lower middle market companies generally have annual revenues between $10 million and $150 million.  Main Street’s middle market debt investments are made in businesses that are generally larger in size than its lower middle market portfolio companies.”

Main is a Monthly Dividend payer ( current Dividend is 0.185 per share) or on an annual basis $2.22 per share. In addition it pays a Special Dividend twice a year in June and December of 0.27 cents per share.

Initial Public Offering (IPO) was October 2007 @ $15.00 per share – Since that time  Main has paid ($20.54 per share in cumulative Dividends)

Main Street Capital has been in my own portfolio for about two years now and quite frankly I wish I had gotten into it much sooner and at a much higher share count than I initially did. I continue to hold the stock and Drip the dividends. At around forty dollars per share at the time of this writing I find it just a little pricey but of course that’s the case with almost every desirable company. If I were initiating a position today I would recommend buying in slowly on any dips.

Some have been predicting with BDCs such as Main facing stiffer competition from banks that BDCs may have to cut their “special dividends”in the future but frankly that is not something I see happening any time soon. As a Dividend Income Investor I don’t make decisions based on what possibly happen but rather what is currently happening. If and when things begin to change – well I will deal with that when the time comes but right now I am enjoying collecting the great dividends that Main Street Capital is generating for my portfolio.

There may be better investments out there but you will have a very hard time finding them!

I especially enjoy the “special dividend” each December. It feels like they are sending me a Christmas present of cash !

 

For More Information visit Main Street Capital’s Website

Please share your thoughts and comments below.

 

Become a “Wheeler and Dealer”!

“So as you can see, there is literally no excuse for not having a passive or alternative income stream. “

Become a “Wheeler and Dealer” for Fun and Profit!

Looking back there are people that stand out in life as having that “Secret Sauce” we all desire. Sometimes because we are so focused on other aspects of life we fail to see what is right before our eyes. I have met two people in my lifetime that made a great impact on me when it came to their ability to generate income. These people and others like them have a talent that is generally not recognized as such. They have the ability to look at everyday situations and turn them into money making opportunities. They see opportunities that most of us just pass by. They instinctively know how to make money where we fail to see the value. Most of us ignore opportunities because we don’t realize we are seeing an opportunity. But there are a few people that see opportunities daily and jump on the chance of profiting from them.

They are what I like to call “Wheeler and Dealers”!

The first person was a friend and coworker during my early years in the Navy. He and I became close friends, we not only interacted well at work but we regularly hung out after work and he and his wife would invite me over for dinner. It soon became clear to me that he had a special talent, although at the time I don’t think I understood. He was what I like to call a “Wheeler and a Dealer”. I don’t mean this is a derogatory manner but rather a genuinely positive way. I had great admiration for him and his ability to spot “opportunities” to make money and generate cash flow. Somehow he was always looking for and spotting that deal that would make him some money. He would buy a car and flip it for an instant profit, or make trades then later sell what he traded for a substantial profit. He did not wait for opportunities, he created them.  I have lost contact with him over the years but the last I heard from him he was doing very well and living a very comfortable life. I have no doubt that he is still “Wheeling and Dealing”.

The other person was a relative of mine through marriage. My wife and I were invited to his house for dinner as we happen to be in town for Easter. My first impression was of awe – a beautiful home and a beautiful hidden property of wooded, rolling hills, a small lake stocked with fish. My first thought was that this guy must have a really good job with a really great income. It turns out I was correct but not exactly for the reasons I was thing. When we went inside the first thing you noticed was that the entire home was furnished with expensive and elegant antiques. Not exactly my personal style. But I am sure that many would love to have the furnishings for themselves, especially those of you that are antique lovers.  I would guess that to go out and buy these items to furnish your home would cost you two or three million dollars. Yes, there was that many, and they were that nice. It was just literally amazing.  Later I asked his son what his father did for a living. It was his answer that floored me. He told me that his father had never held a job in his entire life! He was in his seventies at the time. After more questions I learned that he was an amazing person and made his entire living from finding deals and converting them to cash. He would trade or purchase items from people he knew or met and the trade or resale them to others for profits. He had a keen eye for bargains and knew how to turn them into profits. I later learned that the items furnishing his home were items he wanted to keep and decided not to resale or trade. He was sitting on at least a two or three million dollars in antique furnishings in his home. His home was something that I could only dream of at the time. The property and home was easily worth a million even though it was located in a rural area of Tennessee. It turns out I was correct in my original thought – This guy had a really great job, I just did not realize he worked as a “Wheeler and Dealer”.

I believe that each and every one of us has the ability to become a “Wheeler and Dealer” on some level. We may not be able to make our entire living from it but we can certainly obtain the level of alternative income streams from it with very little effort other than keeping our eyes and minds open to opportunities as they present themselves. It takes a different mindset. I may not be able to instinctively spot bargains and deals like my friend but with approaching every day with the will power to look for deals we can all find bargains to make money and who knows many even make a decent living.

So as you can see, there is literally no excuse for not having a passive or alternative income stream. I have only scratched the surface of potential income here. All you need is the ‘want to” and you are funding your retirement! Saying there is nothing I can do is just an excuse. Each and every one of us has the capability to create alternative Income streams! Make a commitment to yourself to start looking for everyday opportunities and acting upon them for profit and for fun. If you are able to successfully transform yourself you are almost guaranteed to never be without income.  Who knows maybe will ask you what your job is and you will reply – I am a “Wheeler and a Dealer”!

Thoughts or Comments? Have your own story to share ? We would love for you to share them with us !

Dividend Increases for June 2017

“American Tower Corporation is a REIT that has almost 150,000 Wireless towers .”

A List of notable Dividend Increases for June 2017

The following Notable Companies raised its Dividend in June 2017: American Tower Corporation, Alexandria Real Estate Corporation, United Health Group, Legg Mason, FedEx, Heico, El Paso Electric, Bed Bath & Beyond, Horizon Bancorp, H&R Block, Target, Caterpillar, United Technologies,Two Harbors Investment, Realty Income, W.P. Carey, Shoe Carnival, New Residential Investment Corp., The Kroger Co., Darden Restaurants, Inc., Whole Foods Market, Inc., General Mills Inc., Worthington Industries,Inc., Bank of America Corporation,

 


Bank of America Corporation (BAC)

Bank of America:

Through our eight lines of businesses, we focus on helping individuals navigate every stage of their financial lives, working with companies—large and small—to drive the economy forward, and providing insights, ideas and award-winning research for institutional investors.

Bank of America lines of Business includes: Retail Banking, Small Business Banking, U.S. Trust, Merrill Lynch, Business Banking, Global Commercial Banking, Global Investment Banking and Global Markets.

Bank of America has a current Market Cap of approximately $244 Billion dollars.

In its June 2017 dividend announcement Bank of America has announced an Increase in its Quarterly dividend from $0.075 per share to $0.12 per share.

Its new annual dividend is now $0.48 per share.


Worthington Industries, Inc. (WOR)

Worthington Industries manufacturers a wide range of industrial products such as Oil & Gas Equipment, Propane Cylinders , Steel, Specialty Storage Tanks, Alternative Fuels and Fire and Rescue Equipment. It has a current Market Cap of about $3 Billion dollars.

In its June 2017 Dividend announcement Worthington Industries has increased its Quarterly dividend 5% from $0.20 to $0.21 per share.

Its new annual dividend is now $0.84 per share.


General Mills Inc. (GIS)

General Mills started in 1866 as a Flour Mill. Today it is one of the Worlds largest food companies with brands such as : Betty Crocker, Pilsbury, Nature Valley, Yoplait, Progresso Soup and much more ! It has a current Market Cap of $32 Billion dollars.

In its June 2017 dividend declaration General Mills announced a 2% increase in its dividend. its Quarterly Dividend has increased from $0.48 to $0.49 per share.

Its new annual Dividend is now $1.96 per share.


Darden Restaurants Inc. (DRI)

Darden Restaurants with a current Market Cap of over $11.5 Billion dollars operates many popular restaurant brands that most will recognize such as Olive Garden, Longhorn Steakhouse, Bahama Breeze, Yard House, Seasons 52 and more.

In its June 2017 Dividend Declaration Darden Restaurants announced a Dividend Increase of 12.5% bringing its Quarterly dividend from $0.56 to $0.63 per share.

Its new annual dividend is now $2.52 per share.


Whole Foods Market, Inc. (WFM)

Whole Foods Market is the Healthy option Supermarket. Its IPO (Initial Public Offering) was in 1992 and has a current Market Cap of almost $14 Billion dollars. Whole Foods Market is currently in the process of being acquired by Amazon/

Whole Foods announced a Dividend Increased of its Quarterly Dividend by 28.5% from $0.14 to $0.18 per share in June 2017.

Its new annual dividend is now $0.72 per share.


New Residential Investment Corp. (NRZ)

New Residential Investment is a REIT (Real Estate Investment Trust).

New Residential Investment Corp. (NYSE: NRZ) is a publicly traded real estate investment trust (“REIT”) that focuses on investing in, and actively managing, investments primarily related to residential real estate.

We aim to drive strong risk-adjusted returns primarily through investments in (i) Excess Mortgage Servicing Rights (“MSRs”), (ii) Servicer Advances, (iii) non-Agency residential mortgage backed securities (“RMBS”) and associated call rights.

New Residential currently has a Market Cap of approximately $5 Billion dollars and is externally managed.

New Residential announced a Dividend Increase of 4% in June 2017, its quarterly dividend has increased from $0.48 to $0.50 per share.

Its new annual dividend is now $2.00 per share.


The Kroger Co. (KR)

About Kroger:

The Kroger Co. (NYSE:KR) is one of the world’s largest grocery retailers, with fiscal 2016 sales of $115.3 billion. The Kroger Co. Family of Stores spans many states with store formats that include grocery and multi-department stores, discount, convenience stores and jewelry stores. We operate under nearly two dozen banners, all of which share the same belief in building strong local ties and brand loyalty with our customers.

Kroger has a current Market Cap of over $21 Billion dollars.

In it Dividend Declaration of June 2017 Kroger announced an Increase in its quarterly dividend of 4% from $0.12 to $0.125 per share.

Its new annual dividend is now $0.50 per share.


Shoe Carnival, Inc. (SCVL)

About Shoe Carnival:

Shoe Carnival, Inc. is one of the nation’s largest family footwear retailers, offering a broad assortment of moderately priced dress, casual and athletic footwear for men, women and children with emphasis on national and regional name brands. As of December 1, 2014, the Company operates 404 stores in 33 states and Puerto Rico, and offers online shopping. Headquartered in Evansville, IN, Shoe Carnival trades on the NASDAQ Stock Market LLC under the symbol SCVL

Shoe carnival has a Market Cap of less than $356 Million dollars.

In June 2017 Shoe Carnival announced a Dividend Increase of its Quarterly dividend by 7% from $0.07 to $0.075 per share.

Its new annual Dividend is now $0.30 per share.


Two Harbors Investment Corp. (TWO)

Two Harbors Investment Corp.:

Two Harbors Investment Corp. is a Maryland corporation focused on investing, financing and managing residential mortgage-backed securities (RMBS) and related investments.

Our objective is to provide attractive risk-adjusted returns to our stockholders over the long term, primarily through dividends and secondarily through capital appreciation. We selectively acquire and manage an investment portfolio of our target assets, which is constructed to generate attractive returns through market cycles. We focus on security selection and implement a relative value investment approach across various sectors within the mortgage market.

Two Harbors Investment has a current Market Cap of approximately $3.5 Billion dollars.

In its June 2017 Dividend declaration Two Harbors announced a dividend increase of 4% from $0.25 to $0.26 per share.

Its new annual dividend is now $1.04 per share.


Realty Income Corporation (O)

Realty Income Corporation is very popular with REIT investors. It is known for its great growth over the years and is considered the creme De la creme of REIT stocks. It has a diversified portfolio of almost 5,000 properties located in 48 states, has paid dividends for 563 months and increased its dividend for 79 consecutive quarters! Realty Income has a current Market Cap of almost $16 Billion dollars.

In June 2017 Realty Income announced a Monthly Dividend Increase of .2% from $0.211 per share to $0.2115 per share.

Its new annual dividend is now $2.538 per share.


W.P. Carey Inc. (WPC)

W.P. Carey is a Diversified REIT. Its portfolio of properties include over $8 Billion in assets, 900 properties with about 90 million square feet of space. The property sectors include over 16 segments and the properties are located in the United States and in over 8 other countries around the world. W.P. Carey has a current Market Cap of over $7 Billion dollars.

In June 2017 W.P. Carey announced a Quarterly Dividend Increase of 1/2% from $0.995 to $1.00 per share.

Annually from $3.98 to $4.00 per share.


United Technologies Corporation (UTX)

United Technologies Corporation is a Global Conglomerate. MANY may not be familiar with the company  as a whole but chances are you will recognize one or more  of its individual companies. Its companies include: Otis Elevators, Carrier Air Conditioners, Pratt & Whitney (Aircraft Engines) , and United Technologies Aerospace division. These along with hundreds of name brand products easily make them a household name. United Technologies has a current Market Cap of over $96 Billion dollars.

In June 2017 United Technologies announced a Dividend Increase of 6% from $0.66 to $0.70 per share.

Its new annual dividend is now $2.80 per share.


Caterpillar Inc. (CAT)

Caterpillar roots go back to 1881 when Benjamin Holt built his first combine harvester. Today it operates under the following Brands: CAT, CAT Financial, CAT Reman, CAT Rental Store, Anchor, Asiatrak, F.G. Wilson, Hindustan, Hypac, MAK, MWM, Olympian,Prentiss,  Perkins,   Progress Rail, Pyroban, SEM, Zhenghou SIWEI, Solar Turbines, Turbomach, & Turner Power Train Systems. Caterpillar has a current Market Cap of over $60 Billion dollars.

In its June 2017 Dividend Announcement Caterpillar Increased its Dividend 1% from $.77 to $0.78 per share.

Its new annual dividend is  now $31.2 per share.


Target Corporation (TGT)

Target Corporation is a controversial retailer that has angered a large percentage of its consumer base in recent years by its promotion of allowing access to its restrooms by transgenders despite concerns by patrons of allowing same sex individuals to use either restroom. The Corporate leadership has refuse to budge from their positions while its customer base is eroding. it has a current Market Cap of approximately 30 Billion dollars.

In June 2017 Target raised its Dividend 3% from $0.60 to $0.62 per share.

Its new annual dividend is now $2.48 per share.


H&R Block Inc. (HRB )

H&R Block provides tax services through a network of over 12,000 retail locations across the U.S. It also has digital tax preparation software for do it yourself. It its latest information provided it claims to have help process over 24 million tax returns in the previous year.

In June 2017 H&R Block increased its quarterly Dividend 9%, from $0.22 to $0.24 per share.

Its new annual Dividend is $0.96


Horizon Bancorp (HBNC)

Horizon Bancorp is a Regional Bank serving Ohio and Michigan. Founded in 1873 . Horizon Bancorp currently has 59 Locations and has a Market Cap of $595 Million.

In its Dividend declaration of June 2017 Horizon announced a Dividend Increase of 18% raising its quarterly dividend per share from $0.11 to $0.13 per share.

Horizon Bancorp’s  new annual Dividend is now $0.52 per share.


Bed Bath & Beyond (BBBY)

Bed Bath & Beyond is a Specialty Retailer that was founded in 1971.The company operates over 2000 stores worldwide, not only the Bed Bath & Beyond stores but additionally other stores under other brand names such as , BuyBuy Baby, Face Value, World Market, Christmas Tree Shops and That! or and That!. It has a current Market Cap of almost $5.5 Billion dollars.

In its June 2017 Dividend declaration Bed Bath & Beyond Increased its quarterly Dividend 20% from $0.13 to $0.15 per share.

Annually its new Dividend is $0.60 per share.


El Paso Electric Company  (EE)

Founded in 1901 El Paso Electric Company is a regional eletric utility provider servicing about a 1/2 million customers in West Texas and Southern New Mexico. It has a Market Cap of $2.17 Billion dollars.

In June 2017 El Paso Electric announced it was Increasing its quarterly dividend 8% from $0.31 to $0.335 per share.

Its new annual dividend is $1.34 per share.


HEICO Corporation (HEI)

Most have probably never heard of HEICO Corporation, but don’t let that fool you, it is a major player in Aviation providing products and services to major airlines. It operates in two distinct divisions, the Flight Support group and it Electronic Technologies group.  It has a current Market Cap of over $5.5 Billion dollars.

In June 2017 HEICO announced it was raising its Semi Annual Dividend 11% from $0.072 to $0.08 per share.

HEICO’s new annual dividend is now $0.24 per share.


FedEx Corporation (FDX)

FedEx operates Internationally as a Air Delivery and Freight Services Company. FedEx (Federal Express Corporation) was founded in Little Rock, AR in 1971 by Frederick W. Smith.   It now operates in 220 countries and territories. Its revenue last year was over $50 Billion dollars. Its current Market Cap is approximately $56 Billion dollars.

In its recent Dividend Announcement of June 2017 FedEx (FDX) has announced an Increase  of 25% in its quarterly Dividend from $0.40 to $0.50 per share.

Its new Annual Dividend is now $2.00 per share.


Universal Health Realty Income Trust (UHT)

Universal Health Realty is a REIT that has investments in 66 properties across the United States. The properties include Medical Office Buildings, Acute Care facilities, Freestanding emergency Centers, Sub Acute Care Facilities and Child Care Facilities. It has a current market cap of over $900 Million Dollars. It was founded in 1986.

In June 2017 Universal Health Realty announced an increase in it quarterly dividend of 1% from $0.655 to $0.66 per share.

Universal Health Realty’s new annual dividend is now $ 2.64 per share.


Legg Mason Inc. (LM)

Legg Mason is an Investment Management company whose products include Mutual Funds, ETFs, Closed End Funds, Money Market Accounts and Educational Savings accounts (529 accounts) among other products. Legg Mason was founded in 1899, is headquarted in Baltimore, Maryland. Legg Mason has over $700 Billion of assets under its management and has a current Market Cap of over $3.6 Billion dollars.

In June 2017 Legg Mason announced an Increase in its quarterly  Dividend of 27% from $0.22 to $0.28 per share.

Legg Mason’s new Annual Dividend is $ 1.12 per share.


UnitedHealth Group Incorporated (UNH)

UnitedHealth Group operates under two distinct business platforms. The first of which as a Health Insurance provider which includes Community and State Insurance Services , Employer and Individual , Medicare and Retirement and Global Services. The second platform is “Optum” which includes OptumHealth , Optumsight and OptumRX. The second platform provides health management and collaborative care, software and information products and pharmacy care services. UnitedHealth Group has a current Market Cap of $175 Billion Dollars.

As of June 2017 UnitedHealth has increased its quarterly dividend from $0.625 to $0.75 per share.

It has a new Annual Dividend of $3.00 per share.


Alexandria Real Estate Equities, Inc. (ARE)

Alexandria Real Estate Equities is an Urban Ofice REIT that focuses on Life science and Technology building clusters. Its portfolio includes over 28 million square feet of space.  Present locations include Boston, MA; New York City, NY; Seattle, Washington; San Francisco and San Diego, CA; and Maryland. Its current Market Cap is $14 Billion Dollars.

In June 2017 Alexandria Real Estate Equities announced an Increased in its quarterly Dividend from $0.83 to $0.86 per share.

Its new Annual Dividend is now $3.44 per share.


American Tower Corporation (AMT)

American Tower Corporation is a REIT that has almost 150,000 Wireless towers . It builds ,and operates the towers and leases them to multiple tenants. Its current Market Cap is over $56 Billion Dollars.

In its June 2017 Dividend announcement American Tower has Increased its quarterly dividend from $0.62 to $0.64 per share.

Its new Annual Dividend is now $2.56 per share.



For a complete list of Dividend Increases and Dividend Decreases please visit our  Dividend Stock News Page .

Previous Dividend Increase or Dividend Decrease articles :

 

Dividend Increases for May 2017

Dividend Decreases for May 2017

Dividend Decreases for June 2017

“Superior Industries International is a Auto Parts company that manufacturers cast aluminum wheels “

A list of notable U.S. Based  Dividend Decreases for June 2017 –

 

 


Mesa Royalty Trust (MTR)

About Mesa Royalty Trust :”Mesa Royalty Trust holds net overriding royalty interests in various oil and gas properties in the United States. It has interests in properties located in the Hugoton field of Kansas; the San Juan Basin field of New Mexico and Colorado; and the Yellow Creek field of Wyoming. The company was founded in 1979 and is based in Houston, Texas.”

It has a current Market Cap of almost $23 Million dollars.

Mesa Royalty Trust announced a 12.5% Dividend Decreased in it monthly Dividend  in June 2017 from $$0.1122 cents per share to $0.0982 cents per share.

Its new annual Dividend is $1.18 per share.


Arlington asset Investment Corp. (AI)

About Arlington Asset Investment Corp.: investment firm that acquires and holds mortgage-related and other assets. We acquire residential mortgage-backed securities, either issued by U.S. government agencies or guaranteed as to principal and interest by U.S. government agencies or U.S. government-sponsored entities. We also acquire mortgage-backed securities issued by private organizations.

Its Current Market Cap is $350 Million dollars.

In June 2017 Arlington Asset Investment Corp. announced a 12% Decreased in its quarterly dividend from $0.625 to $0.55 per share.

Its new annual dividend is now $2.20 per share.


Superior Industries International Inc. (SUP)

Superior Industries International is a Auto Parts company that manufacturers cast aluminum wheels and supplies automotive manufacturers such as BMW, Ford, GM, Toyota, Fiat Chrysler , Mazda, Nissan, Subaru , Volkswagen , and Tesla.

In its June 2017 Dividend Declaration Superior Industries has Decreased its quarterly Dividend by 50% from $0.18  to $0.09 per share.

Its new Annual Dividend is now $$0.036 per share.



 

For a Complete list of Dividend Decreases and Dividend Increases please visit our Dividend Stock News page.

Previous Month Articles on Dividend Decreases and Increases:

Dividend Decreases for May 2017

Dividend Increases for May 2017

Fads and One Hit Wonders – Make for Poor Investments

“People can and always will make good money off these types of stocks but they will never make good income from them”

Fads and One Hit Wonders.

Not a viable place to Invest, at least for the long term investor.

Some stocks that come to mind currently are :

Gymboree – Gamestop- Fitbit – Go Pro – Groupon – Soda Stream- Telsa?-  Just to name a few. Of course I have to admit – I have been wrong in the past – I thought for sure Facebook would be another MySpace by now.  And it is entirely possible that some of these companies may expand into other businesses or product lines to sustain themselves but most will die and become nothing more than distant memories.

Whatever your point of view with these companies the point is that they have no place in the Portfolio of a Dividend Income Investor. These type of stocks are best left to traders and speculators. No matter how great a product is unless it is something consumers need or require on a regular basis it will eventually go into a steep decline. Let’s consider Go-Pro. There’s no doubt that Go-Pro makes some great camera’s but the truth is their market is saturated. Only certain people need or desire these cameras and the vast majority of us will never own one because we really do not have use for them. Out of those that do own one many of them have received them as gifts ( usually a one time thing) and many others will only buy the product once or at most every few years. Now certainly Go-Pro can survive with this model but in all probability unless they can come with more everyday products they will not thrive enough for investors and certainly not for Dividend Income Investors.

When considering stocks to add into your Dividend Income Portfolio you you consider:

  • does it pay a dividend( As a Dividend Income Investor it has to pay a higher yield ) and is it sustainable
  • Is it a product that people will want continuously – not just as a novelty or a gift.
  • Is it more than a Fad – something that will be wildly popular until the novelty wears off.
  • Can its products be protected or will other companies soon be copying them

People can and always will make good money off these types of stocks but they will never make good income from them. For Dividend Income Investors, stay focused !

Thoughts or comments?