May 21, 2016

These 3 Dividend Stocks Could Slash Their Payouts

Don't chase these high dividend yields. They might not last.

Investors looking for dividend stocks need to be careful not to chase yield. Investing in some high-yielding stocks could be a recipe for disaster as those high-yield stocks turn into low-yield stocks if management decides to cut the dividend. That's why investors need to ensure those dividends are safe and well within the means of the businesses paying them out.

The three dividend stocks examined in this article -- Seagate Technology (NASDAQ:STX), Las Vegas Sands (NYSE:LVS), and Mattel (NASDAQ:MAT) -- are all in danger of cutting their dividends in the near future.

Let’s take a closer look to see why…

Don't Be In a Rush to Buy These 4 Dividend Tech Stocks Based on Charts

Dividend-paying tech stocks may have investment appeal, but the charts on these four stocks suggest otherwise.

As a chartist, I don't have a problem with buying or suggesting stocks that pay a dividend, whether they come from the technology sector or anywhere else. However, when I recommend stocks I like to see that they are in uptrends or coming out of a base pattern.

These four stocks are not.

Let's look more closely what Bruce Kamich think of Qualcomm, Cisco, Intel, and IBM...

Source: TheStreet

9 Reasons to Love High-Yield Dividend Stocks

There's a lot to like about high-yield dividend stocks. Here are nine reasons why I love them

If you're like me, you have an affinity for shares of companies that pay dividends -- especially dividends with a little heft to them. There are many reasons why dividend investing is a good idea. Here are nine that top my list.

Continue to read at The Motley Fool to find out Brewers' list… 

May 20, 2016

4 High-Yield Dividend Stocks That Pay You Every Month

Take a look at these four high-yield dividend stocks that pay out dividends every month.

You will probably agree that getting monthly dividends is preferable to receiving quarterly dividends. For those living off their dividends, monthly payments make more sense. After all, your living expenses don't happen quarterly; most bills come in monthly.

Wouldn't it be great to invest in some of the best monthly dividend stocks that also have high yields? That way you could have the best of both worlds: high dividend income that comes in monthly instead of quarterly.

Today we'll look at four high-yield monthly dividend stocks for monthly income. Three of them are real estate investment trusts. REITs are required by law to pay out at least 90% of their income to shareholders. One of the REITs we'll examine has a long dividend history, long enough to be one of only 274 Dividend Achievers, stocks with or more years of consecutive dividend increases.

Continue reading to look closer to those four…

Source: TheStreet

Grab A Second Monthly Paycheck With 3 Monthly Dividend Payers

Times are tough for seniors, savers and income investors.  The Fed’s zero-interest-rate policy (ZIRP) has wreaked havoc on average investors.  One-year CDs currently pay an average 1.25% and money market accounts pay an average of 0.11%.  Average investors just can’t afford to live on Social Security and those minuscule yields.

However, there is one way to smooth out the wrinkles in the monthly budget and cope with the ongoing bills.  You can add some monthly dividend payers to your portfolio.  I’ve identified three stocks that will give you a second, reliable paycheck to supplement your Social Security check and/or your salary.

Continue reading to look closer to those three…

Source: Forbes

May 18, 2016

McDonald’s Corporation Stock Up 40%: Can the Rally Continue?

The Golden Arches are delivering impressive performance on the back of product and service innovations. Can the company sustain this bull run going forward?

McDonald's (NYSE:MCD) has been firing on all cylinders lately. Shares of the fast food giant are up more than 40% from their lows of the past 12 months, putting the stock at historical highs as sales growth accelerates. Let's look at the main drivers behind this impressive rally and, perhaps more importantly, what the stock has to offer for investors looking ahead…

Is Cisco Systems' Dividend Sustainable?

Networking giant Cisco Systems (NASDAQ:CSCO) has been a bit of an underperformer over the past year. The stock has fallen about 9% compared with the S&P 500, which has dropped 2%. Although the stock has struggled, the business performance has been better.

Over the 12 months ended in late January, when Cisco last reported earnings, the company has been able to grow revenue a little over 3% and take much more of that growth to the bottom line. Earnings per share grew nearly 22% over the same period. Return on equity came in at an impressive 17.3%.

The company's five-year performance hasn't been too shabby, either. Revenue and EPS have grown an annualized 4.2% and 5.6%, respectively. The stock has more or less mimicked the S&P 500's returns, increasing 50% over the past five years. It's not knock-it-out-of-the-ballpark performance, but the slow and steady progress has allowed the company to increase its annualized dividend from $0.12 per share in 2011 to $1.04 today.

An increasing dividend coupled with a falling stock price has resulted in a stock that is paying a 3.9% dividend yield as of this writing. While this may be impressive, it is also worrisome at first glance. As the dividend yield creeps up to 4%, it would be prudent to analyze if Cisco's payout is sustainable.

May 17, 2016

9 Low-Risk, High-Yield Dividend Stocks to Buy

Get defensive and fend off volatility with these big, healthy dividends

With the meat of earnings season behind us and the summer lull straight ahead, many investors are wondering what’s next in 2016.

But given all the uncertainty out there, including the risk of a “Brexit” from the European Union and weak jobs numbers for April, it seems unlikely that the way forward will be very rosy. Heck, Fed chairwoman Janet Yellen went on record earlier this year to say she won’t rule out negative interest rates as a way to stimulate the economy!

In an environment such as this, investors need to think about defensive plays with the ability to hang tough in any market. And for most portfolios, that means a focus on low-risk dividend stocks that will drive returns of 4%, 5% or more simply through the power of their monthly distributions.

Those who just want to preserve their capital and squeeze out a modest return in a down market, here are nine low-risk, high-yield dividend stocks to consider…

Source: InvestorPlace

3 Retirement Stocks to Buy in May

Here's a list of three stocks that our contributors love for retirees.

Studies show that Americans are living longer than ever. That's great news, but it also means that investors in their golden years will need to rely on their nest eggs to sustain them financially for a longer time period. For that reason, we Fools believe that these investors should keep at least a portion of their net worth in the stock market. Doing so will give them a better chance at producing higher returns, and is more likely to help them keep ahead of inflation.

Of course, that doesn't mean that these investors should go crazy and invest in high-risk growth stocks. Instead, their best bet is to invest in companies with strong competitive advantages that operate in markets with good growth prospects.

To help investors find appropriate stocks, we asked a team of Motley Fool contributors to share a stock that they think is a good fit for any retiree.
Continue to read to find out which companies they selected…

AFLAC Incorporated (AFL) Is Even More Attractive After Earnings

AFLAC Incorporated (NYSE:AFL) is one of only 2 insurance stocks in the Dividend Aristocrats Index. The company is the global leader in cancer insurance, and has paid increasing dividends for 33 consecutive years.

Before we dig into AFLAC”s latest earnings, let’s look at how the stock has been traded by world-class investors of late. 24 funds tracked by Insider Monkey were long AFLAC on December 31, owning $614.71 million worth of the company’s shares, which amounted to 2.40% of its float. During the first quarter we’ve seen eight funds within the Insider Monkey database take up new positions in the stock, while six cut ties with former AFLAC holdings. Harris Associates owns a $459.57 million AFLAC position as of March 31.

Continue to read…

3 Tech Stocks to Buy in May

These three tech companies have characteristics that suggest lucrative opportunities for investors.

The tech sector continues to attract investors with its potential for high growth after producing many of the last decade's most extraordinary winners. Taken as a whole, tech investments present a heightened risk-to-reward trade-off, and while 2016 has been a volatile year for many big tech companies, the influential and far-reaching nature of technology suggests the sector will continue to play host to the most lucrative growth opportunities.

With an eye on influential technology trends, we asked three of our contributors to pick a tech stock that might deserve a spot in your portfolio.

Read on to learn which stocks they marked as "buys" in this merry month of May…

3 High-Income Utility Stocks That Are Ready to Boost Dividends

In this lackluster market, it's tough to find decent income. Look no further! Here are three income-generating gems that will hike their payouts.

Utility stocks are known to be classic defensive plays when everything is going wrong in world markets.

With skittish stock markets around the world, a weak U.S. jobs report in April and unpredictability ruling the energy market, there is a cloud of uncertainty on future interest rate hikes by the U.S. Federal Reserve.

This situation bodes perfectly well for utility companies as their stocks provide better yields than government securities, as well as capital protection. The sector is considered one of the safest in the equity market and is well suited for retirement investing. The strength in the sector is evident by the performance of a widely followed exchange-traded fund that tracks it: Utilities Select Sector SPDR Fund (XLU) . This ETF has gained 14% so far in 2016.

For income investors to profit from this trend, we've pinpointed three stocks that have plenty of momentum left and can grow dividends further…

Source: TheStreet

The 3 Best Dividend ETFs

The best dividend ETFs offer high yields but promise to allow you to sleep well at night. Here are the three best high-yield ETFs on the market today.

The explosion in the number of exchange-traded funds is both good and bad. The good is obvious -- investors have more choice than ever before. The bad is that the boom has created hundreds of ETFs, some with just one twist that makes them ever so slightly different than another fund on the market.

The boom is especially apparent in the hunt for dividend yield. To create the highest ETF yield, dividend stocks are becoming increasingly lumped together with no regard for quality. Dividend aristocrats are frequently combined with riskier alternatives. The best dividend ETF should offer a safe and reliable yield, continue to read to find those best three…

May 16, 2016

Retired? 3 Bulletproof Dividend Stocks You Should Consider Buying

These rock-solid companies have proven their financial strength by raising their dividends over several decades.

Depending on your particular needs, your investment strategy will inevitably change over time. Investors in retirement typically focus on strong dividend stocks with a solid trajectory of growing dividends over the long term, as these kinds of companies tend to be especially healthy and reliable.

So, if you're looking to add some rock-solid dividend stocks to your retirement portfolio, names such as PepsiCo (NYSE:PEP), McDonald's (NYSE:MCD), and Kimberly-Clark (NYSE:KMB) are worth considering. Here's why…

3 Cheap Stocks Set To Double Their Dividends

Plenty of investors judge a stock’s dividend by one thing: the current yield. It’s a key figure, to be sure, but it’s just a starting point. If you’re investing for the long haul, dividend growth is way more important.

To see how focusing solely on current yield distorts the payout picture, take a look at Microsoft Corp. (MSFT). The stock currently boasts a 2.6% dividend yield, just above the S&P 500 average of 2.2%.

That’s not bad, but it masks the 125% boost in the company’s dividend over the past five years: if you’d bought MSFT back then, when the stock was trading around $25.70—roughly half of today’s level—you’d already be banking a 5.6% yield on your initial buy.

Before you ask, no, I don’t recommend buying Microsoft now, despite its glowing dividend history. That’s because the software giant’s payout hikes could be a lot smaller in the next five years than they were in the last five.

Why? For one, its payout ratio has broken over 100%, which means it’s paid out more in dividends in the last 12 months than it’s earned—never a good sign for future increases.

Continue to read to find out those three…

Source: Forbes

Eaton Corporation (ETN): Manufacturing Safe Dividends Since 1923

Eaton Corporation, PLC Ordinary Shares (NYSE:ETN) shares several characteristics with some of the companies we hold in our Top 20 Dividend Stocks portfolio.

The company scores well for Dividend Safety and Dividend Growth, has paid dividends every year since 1923, generates excellent free cash flow, and has a relatively high dividend yield near 3.7%.

Eaton’s stock also trades at a forward price-to-earnings multiple of 14.2, which is a discount of approximately 15% compared to the broader market.

Let’s take a closer look at Eaton…

May 15, 2016

5 Dividend Stocks to Buy in May

Our team of Foolish dividend experts recommend buying Amgen, Carter's, FedEx, Illinois Tool Works and Magellan Midstream Partners this month. 

Dividend stocks are undoubtedly a powerful way to ratchet up the long-term returns of your portfolio. Even so, it can be challenging to choose the best dividend-payers, given the sheer diversity of options. To help you in this endeavor, we asked our Foolish team of dividend experts their thoughts on which income-generating stocks might be worth buying this month.

Here is a look at their five picks for the month of May…

Dividend Investing – 40 Quality High Dividend Ideas Around The World

Dividend Investing – 40 Quality High Dividend Ideas Around The World by Tim du Toit, Quant Investing

High dividend yield companies in a low interest rate world

With interest rates around the world still at record low levels (and it looks like this will continue) here are a few high quality investment ideas of companies with an attractive dividend yield (dividend investing).

Quality dividend investing

You know not all high dividend yield companies make good investments because you also have to make sure the company can continue paying the high dividend in future.

This is what this list does for you, it gives you a list quality companies with an attractive dividend yield.

How this dividend investing list was selected

Before I get to the list of companies, first some information on how the list was selected.

Interested, continue to read…

Source: ValueWalk

Meet the 2016 Top 10 Dividend Achievers List

An impressive list of names, but some have warning signs

The Nasdaq Dividend Achievers Index is a group of companies that have consistently rewarded shareholders with increasing dividend payouts. Companies qualify for the Dividend Achievers List if they have raised their dividends each year for at least 10 consecutive years and meet certain trading liquidity requirements.

Why is the Dividend Achievers List popular? Generally speaking, companies that consistently raise their dividends are financially healthy, growing businesses.

Over time, these types of companies have done well in the market while providing shareholders with safe, growing income.

Let’s look those top 10 companies…

Source: InvestorPlace

2 Beaten-Down Dividend Stocks to Buy

These stocks are trading at a discount compared to a year ago, but there are reasons to expect both will have a winning 2016.

Up and down the markets go, where will they stop? Nobody knows. There's been enough drama on Wall Street thus far in 2016 to rival the latest Kim Kardashian ploy or the newest reality television show.

That drama has included the worst ever two-week stretch to start a year, followed by the biggest quarterly reversal in 83 years when the market climbed strongly to finish the first quarter. West Texas Intermediate crude prices hit a 12-year low and natural gas prices hit a 17-year low. Gold posted its best quarter in 30 years; Japan sold a negative interest rate 10-year bond for the first time; and even the people's champion, Apple, reported a year-over-year sales decline, something it hadn't seen in almost 13 years. And I'm not even going to touch the subject of China's unpredictable economy.

On the bright side, if the market drama continues, it will surely bring investors more opportunities to pick up dividend stocks on the cheap.

Here are two to keep an eye on…