By Dan Dzombak, The Motley Fool
Filed under: Investing
Dividend investing is popular again. Investors have taken to heart Jeremy Siegel’s studies, which show that higher-yielding stocks tend to offer greater returns over time than low- or no-yield stocks.
The highest dividend yields can be very tantalizing. As long as a stock yielding 15% doesn’t lose value, you’ll make 15% in one year! In more cases than not, however, an astronomical yield is a bad sign for a stock. Since dividend yields and stock prices move in opposite directions, a high yield usually means that investors have begun to worry about the business and driven down its stock price.
However, certain types of companies such as REITs have to pay out most of their income as dividends, so their yields will be higher than “normal.” Dividends are not guaranteed; you need to make sure that a business is generating enough cash to pay its dividend, or your investment could be disastrous.
I ran a screen for the highest-yielding stocks, the only limitation I’ve set this time is that the dividend stocks must have a market cap greater than $500 million and must be a corporation, so no REITs or MLPs.
Here are the top 25 highest-yielding stocks the screen produced:
|
Company Name |
Market Cap (millions) |
Dividend Yield |
|
|---|---|---|---|
|
1 |
Boise |
$860.3 |
13.80% |
|
2 |
SeaDrill |
$17,629.6 |
12.00% |
|
3 |
Windstream |
$5,125.4 |
11.50% |
|
4 |
Pitney Bowes |
$2,750.4 |
11.10% |
|
5 |
Great Lakes Dredge & Dock |
$580.3 |
10.40% |
|
6 |
R.R. Donnelley & Sons |
$1,900.8 |
10.10% |
|
7 |
Vector Group |
$1,442.9 |
10.10% |
|
8 |
Wynn Resorts |
$11,700.5 |
9.87% |
|
9 |
Ship Finance International |
$1,410.9 |
9.53% |
|
10 |
Frontier Communications |
$4,092.9 |
9.52% |
|
11 |
Consolidated Communications |
$664.2 |
9.39% |
|
12 |
National Presto Industries |
$521.8 |
8.65% |
|
13 |
PDL BioPharma |
$977.1 |
8.60% |
|
14 |
SouFun Holdings |
$1,992.7 |
8.51% |
|
15 |
First Financial Bancorp |
$896.4 |
7.90% |
|
16 |
New York Community Bancorp |
$5,909.6 |
7.41% |
|
17 |
Werner Enterprises |
$1,704.1 |
7.40% |
|
18 |
Linn |
$1,349.4 |
7.37% |
|
19 |
Costamare |
$1,214.0 |
7.05% |
|
20 |
Capitol Federal Financial |
$1,813.3 |
6.89% |
|
21 |
HCA |
$16,386.9 |
6.82% |
|
22 |
VimpelCom |
$19,611.6 |
6.77% |
|
23 |
United Online |
$549.6 |
6.77% |
|
24 |
Exelon |
$26,881.8 |
6.70% |
|
25 |
Giant Interactive |
$1,550.4 |
6.69% |
Source: S&P Capital IQ.
These stocks are a good place to start your research, but they’re not formal recommendations.
Let’s take a look at the top 3:
Boise is first with a trailing yield of 13.8%. Boise does not pay a regular dividend; 2012 was the third year in a …read more
Source: FULL ARTICLE at DailyFinance
