Dividends Value » NLY

6 Dividend Stocks Working Even When I’m Not *

D4L — Fri, 18 Jun 2010 07:30:45 +0000

This past week I have been vacationing more than 1,500 miles from my home. As with most vacations, I have not done much work this week. However, a quick check of my brokerage account shows that my dividend stocks have been very busy this week. It is nice to know my income portfolio never takes a day off. What’s even better is the portfolio is frequently getting a raise through higher cash dividend payments.

Here are several select companies that have recently provided their shareholders a raise with increased cash dividends:

Stage Stores (SSI) is a specialty department store retailer operating in the U.S., offering brand name and private label apparel, accessories, intimates, home, gifts, outerwear, cosmetics & footwear. June 14th the company increased quarterly divdiend 50% to $0.075/share. The new quarterly dividend rate of will be applicable to dividends declared after June 23, 2010. The yield based on the new payout is 2.34%.

BioMed Realty Trust (BMR) acquires, develops and manages laboratory and office space for the life science industry. June 15th the company increases its quarterly dividend 7.1% to $0.15/share. The dividend is equivalent to an annualized dividend of $0.60 per common share. The yield based on the new payout is 3.33%.

Oil-Dri Corporation of America (ODC) develops, manufactures and markets sorbent products. June 15th the company increased its quarterly dividend 7% to $0.16/share. The dividends will be payable on September 3, 2010, to stockholders of record at the close of business on August 20, 2010. The yield based on the new payout is 2.82%.

John Wiley & Sons (JW-A) is a global publisher that produces print and electronic products, providing content and solutions to customers worldwide. June 17th the company increased its quarterly dividend 14% to $0.16/share. The dividend is payable on July 14, 2010 to shareholders of record on July 6, 2010. The ex-dividend date is July 2, 2010. JWA-A is a Dividend Achiever and has raised its dividend for 17 consecutive years. The yield based on the new payout is 1.65%.

CreXus Investment (CXS) is a specialty finance company that acquires, manages, and finances, commercial mortgage loans and other commercial real estate-related assets. June 17th the company increased its quarterly dividend 71% to $0.12/share. The dividend is payable July 28, 2010 to common shareholders of record on June 28, 2010. The ex-dividend date is June 24, 2010. The yield based on the new payout is 3.88%.

Annaly Capital (NLY) owns and manages a portfolio of agency mortgage-backed securities and operates a fixed income asset management business. June 17th the company increased its quarterly dividend 4.6% to $0.68/share. The dividend is payable July 29, 2010 to common shareholders of record on June 29, 2010. The ex-dividend date is June 25, 2010. The yield based on the new payout is 15.54%.

Selecting stocks with increasing dividends is critical for an income growth strategy. The above list contains stocks that recently raised their dividends, it is not a list of recommend buys. As always, due diligence should be performed before buying or selling any stock. For a list of stocks with a long string of consecutive cash dividend increases, see this list.

Full Disclosure: No position in the aforementioned securities. See a list of all my income holdings here.

(Photo Credit)

Dividend Stocks: A Disciplined Approach *

D4L — Wed, 04 Nov 2009 10:30:03 +0000

Those that have read this space for any period of time are well aware of my enthusiasm for using dividend growth stocks as a vehicle for building long-term wealth and income. However, with that said, a successful investor must do more that just buy stocks that pay a growing dividend, or more that focusing on a single metric such as dividend yield. Not all dividend stocks are created equal – there is a discipline to selecting good dividend growth stocks.

Understand Your Goal

What is your portfolio trying to accomplish? As odd is it may seem, many investors never define this and their overall goal. Are you buying stocks like First Industrial Realty Trust, Inc (FR) with a 22% yield, Capstead Mortgage Corporation (CMO) with a 17% yield, Annaly Capital Management, Inc. (NLY) with a 16% yield or Apollo Investment Corp. (AINV) with a 12% yield? If your goal is short-term income these might work, and then again they might not.

Before buying buying any stock you should write down your investing goal and determine if purchasing that stock will bring you closer to your goal or take you further away. My goal is to generate an ever-increasing income stream from dividends. Thus, I will sacrifice some current income in favor of future growth and income stability.

Understand and Measure the Risk

No stock is 100% safe. Each stock has its own set of risks that need to be considered. The stocks listed above are considered high risk. In exchange for above average current income, you may encounter above average dividend cuts and/or loss of capital.

Gauging the relative risk of one stock compared to another is important when deciding which stock to buy or how much to weight a stock within your portfolio. I prefer lower risk stocks such as Johnson & Johnson (JNJ) [Analysis], Procter & Gamble Co. (PG) [Analysis]and Wal-Mart Stores, Inc. (WMT) [Analysis].

A Disciplined Approach

For me and my income portfolio, I have have chosen to follow a conservative and disciplined approach. This means I will seek out dividend stocks with a proven track record and good future prospects. These stocks will have a long history (10 or more years) of consecutive dividend increases, low debt, low free cash flow payout and excellent other dividend metrics. In addition, I will follow time proven valuation techniques to select an entry point that will provide a good value.

Stay The Coarse

There is always a temptation to stray from a disciplined approach of selecting good dividend stocks. Often I receive questions like, ‘AT&T Inc. (T) is making a fortune off the iPhone, why aren’t you buying it?’ or ‘Kraft Foods Inc. (K) is a great consumer staple, why aren’t you buying it?’ The short answer is that neither currently can pass the entry exam to gain access to my income portfolio.

It is easy to become caught up with the current hot stock that everyone loves. The key to success is to buy before everyone else falls in love with it. Selecting good dividend growth stocks is not difficult, being disciplined enough to do it is difficult for many investors.

Full Disclosure: Long JNJ, PG, WMT. See a list of all my income holdings here.

(Photo Credit)

Five Dividend Stocks Raising Their Dividends *

D4L — Fri, 19 Jun 2009 10:30:25 +0000

When it comes to selecting dividend stocks, one of the most important items to look for is consistency in raising dividends. Sure it is easy to increase dividends when the economy is booming and business is good, but to be consistent a company has to persevere and continue to increase dividends during the tough times.

Below are five companies that have recently increased their cash dividends to shareholders:

Village Super Market (VLGEA) operates a chain of 23 ShopRite supermarkets in New Jersey and Pennsylvania. The company’s Board increased its quarterly cash dividend 7.5% to $0.215/share. The dividend is payable on July 23, 2009 to shareholders of record at the close of business on July 2, 2009. VLGEA has increased its dividend six consecutive years since began paying dividends in 2003. At the new rate, the stock is yielding 2.9%.

Casey’s General Store (CASY) has over 1,450 convenience stores (including franchises) in nine
midwestern states, selling food, beverage, health and automotive products. At its June meeting, the Board of Directors increased the quarterly dividend 13.3% to $0.085/share. The dividend is payable August 17th, to shareholders of record on August 3rd. This marks the fourth consecutive year CASY has increased its dividend. At the new rate, the stock is yielding 1.3%.

Medtronic (MDT) is a global medical device manufacturer has leadership positions in the pacemaker, defibrillator, orthopedic, diabetes management and other medical markets. Recently the company increased its dividend by 9% to $0.205/share. In addition, the Board authorized MDT to purchase an additional 60 million shares (5.4%) of its common stock. At the new rate, the stock is yielding 2.5%. The company is a Dividend Achiever.

John Wiley & Sons (JW.A) is a global publisher of print and electronic products, providing content and solutions to customers worldwide. The Board recently raised its quarterly cash dividend 8% to $0.14/share. It is payable on July 14, 2009 to shareholders of record on July 6, 2009. This is the 16th consecutive dividend increase. At the new rate, the stock is yielding 1.7%. JW.A is a Dividend Achiever.

Annaly Capital (NLY) is a mortgage real estate investment trust that owns and manages a portfolio of agency mortgage-backed securities and operates a fixed income asset management business. On June 18th, its Board increased its quarterly cash dividend 20% to $0.60/share. The dividend is payable July 29, 2009 to common shareholders of record on June 29, 2009. NLY had previously dropped its dividend in December 2008 to $0.50/share from $0.55/share. At the new rate, the stock is yielding 16.0%.

Though it may seem that most companies are cutting their dividends, many continue to show strength and increase their dividends. For stocks with a long string of consecutive dividend increases, see this list.

Full Disclosure: No position in the aforementioned securities. See a list of all my income holdings here.

(Photo Credit)

Best Stocks For 2009 *

D4L — Tue, 23 Dec 2008 11:30:00 +0000

I always enjoy this time of year. The Christmas music, decorations, family gatherings, holiday plays and stock picks. Stock picks? Yes, ’tis the season for stock predictions! Virtually every financial writer will pen an article selecting his or her top picks for the upcoming year. I enjoy reading them and the logic behind them. As a long-term buy and hold investor, generally most aren’t useful for me; nevertheless, I enjoy reading them. Here are some excerpts and picks from several of the experts:

In Jubak’s Journal, Jim Jubak believes the markets will recover before the larger economy does. He provides 5 picks for the beginning of the year and 5 for later, with lots of caveats. His 5 best stocks for the first half of 2009:

Deere (DE) – a farm machine producer that tracks the price of agricultural commodities.
Enbridge (ENB) – a natural-gas and oil pipeline company that has a 3.8% yield.
ExxonMobil (XOM) – the world’s best integrated oil company for the current environment. [reviewed July 7, 2008]
Flowserve (FLS) – It makes pumps and valves for moving everything from water to oil and has a yield of 2%.
Rayonier (RYN) – a producer of wood products and an owner of timberland. Yield: 7.2%.

His 5 best stocks for the second half of 2009:

Goldcorp (GG) – the world’s low-cost producer of gold.
Google (GOOG) – the dominant Internet search company just gets more dominant.
HSBC (HBC) – the best banking franchise left standing in Asia.
Petrobras (PBR) – The Brazilian national oil company has dozens of new fields under development. It was added to Jubak’s Picks on Aug. 26, 2008.
Thompson Creek Metals (TC) – the second-largest private producer of molybdenum in the world.

In their normal fun and frivolous way the Motley Fool picks The Best Stocks for the Year Ahead. Here are six of them:

Yum! Brands (YUM) – a quick service restaurant with over 35,000 units in more than 100 countries and territories.
PepsiCo (PEP) – a global snack and beverage company. [reviewed May 26, 2008]
Coca-Cola (KO) – a manufacturer, distributor and marketer of nonalcoholic beverage concentrates and syrups. [reviewed October 22, 2008]
Philip Morris International (PM) – an international tobacco company.
Kinder Morgan Energy Partners (KMP) – a pipeline transportation ad energy storage company in North America.
Enterprise Products Partners (EPD) – a North American midstream energy company.

Fortune magazine in their The best stocks for 2009 article points out the silver lining of the market meltdown: Equities are cheaper than they’ve been in years. They predict that these ten prospects will flourish during 2009:

Altria (MO) – is the holding company of Philip Morris USA Inc. (PM USA) and John Middleton, Inc., which are engaged in the manufacture and sale of cigarettes and other tobacco products.
Annaly (NLY) – a real estate investment trust (REIT) that owns and manages a portfolio of mortgage-backed securities.
Dell (DELL) – a technology company, which offers a range of product categories, including desktop personal computer.
Devon Energy (DVN) – an independent energy company engaged primarily in oil and gas exploration, development and production.
Diamond Offshore (DO) – provides contract drilling services to the energy industry worldwide.
Fluor (FLR) – a holding company that, through its subsidiaries, provides engineering, procurement and construction management.
Johnson & Johnson (JNJ) – is engaged in the research and development, manufacture and sale of a range of products in the healthcare field. [reviewed October 29, 2008]
Medco Health Solutions (MHS) – a pharmacy benefit manager.
Pfizer (PFE) – a research-based, global pharmaceutical company. [reviewed March 17, 2008]
Potash Corp. (POT) – an integrated fertilizer and related industrial and feed products company.

Finally, Selena Maranjian at the Motley Fool picks a single best stock in the article Best Stock for 2009: Johnson & Johnson. The article points out several important facts about JNJ:

75 consecutive years of sales increases.
24 consecutive years of adjusted earnings increases.
46 consecutive years of dividend increases.

In addition, the stock had a 10-year 140% total return for investors, compared to a 51% total return for the S&P 500.

We are all looking for the perfect stock. Over the years I have evaluated several of the above stocks as potential dividend investments, most did not pan out. Dividend investors are looking for stocks that will perform well over the long run, not just 2009. Of the stocks mentioned above, I am actively buying JNJ, KO and PEP.

Full Disclosure: Long JNJ, KO, PEP and PFE