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" title="HCP : Stock Quote, News and Research" class="showrtquote">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.