Tag Archives: Nam Tai Electronics

5 Fat Dividend Yields to Consider

By Selena Maranjian, The Motley Fool

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Dividends from healthy, growing companies deliver to us, like mail carriers, in any kind of weather: boom, bust, or stalled economy. As 2012 drew to a close, I offered some high-yield dividend payers for you to consider. There are a lot of other promising income-generating stocks out there, though, and the year is still young, so if you’ve been meaning to add some dividends to your portfolio, read on for additional ideas.

Below are a few companies about which you might want to learn more. They each feature a combination of promising traits, such as dividend yields of at least 3%, positive expected EPS growth over the next few years, and debt levels under control. As you hunt for stocks, whether dividend payers or not, it’s good to see expected growth — and it’s also a plus when a company is saddled with heavy debt, as that can limit its potential. Each of the companies below offer solid income as well as growth potential.

Note that several of the companies are limited partnerships (MLPs), which offer some tax advantages as well as some complications. Note, too, that very high yields are sometimes tied to riskier stocks that have fallen in value. Be sure to research such companies carefully before jumping in.

Northern Tier Energy : The relatively newly public oil refiner yields about 16% and is profitable, with positive free cash flow, as well. (Such high yields are often unsustainable, but even a halving from that level would leave a fetching payout.) Northern Tier also operates more than 160 convenience stores. All is not perfect, though, as the company was recently paying out more than its earnings per share, and it does carry some risks, such as needing pipeline projects to be completed, ideally on time, in order to maximize production. It’s also riskier than many other MLPs, as its payouts are less certain. Management plans to increase production and also to cut costs by investing more in its trucking operation.

Hi-Crush Partners : Like Northern Tier, Hi-Crush, recently yielding 10.3%, is also an energy MLP, profiting via providing sand for fracking. Bulls like its low costs and long-term contracts with customers. Bears worry about controversies surrounding the practice of fracking. If fracking is reined in, companies such as Hi-Crush will be hurt. The company’s fourth-quarter results may not have been as impressive as some analysts had hoped, but they were still impressive, featuring double-digit gains in revenue and earnings.

Nam Tai Electronics , a China-based company yielding 4.2%, has seen its stock surge 176% over the past year. It’s involved in the manufacturing of tablets such as the iPad mini. In its strong fourth quarter, the relatively unknown company reported sales up 263% over year-ago levels, and noted that it’s boosting profit margins by shedding less profitable operations. Bulls like its forward P/E of 7, but a concern is a recent dip into negative free cash flow. 

Intel , …read more
Source: FULL ARTICLE at DailyFinance