Income Investing

Sometimes the best dividend yields can be found by looking for stocks that few analysts follow. There are dozens of otherwise good quality companies out there which analysts simply don’t talk about, either because the company is too small, too new or occupies a one-of-a-kind niche. Analysts don’t cover these… Read More

It’s a dirty, unglamorous stock. And some would even say the company’s products stink. But, over the years, this stock has continued to offer outstanding returns to investors and traders. The stock shows no signs of slowing yet… In fact, things may just be heating up, making now a potentially profitable time to get in. #-ad_banner-#The stock I’m referring to is dividend champion Altria Group (NYSE: MO), best known for its flagship cigarette brand, Marlboro. But the company is far more than just cigarettes. As the… Read More

It’s a dirty, unglamorous stock. And some would even say the company’s products stink. But, over the years, this stock has continued to offer outstanding returns to investors and traders. The stock shows no signs of slowing yet… In fact, things may just be heating up, making now a potentially profitable time to get in. #-ad_banner-#The stock I’m referring to is dividend champion Altria Group (NYSE: MO), best known for its flagship cigarette brand, Marlboro. But the company is far more than just cigarettes. As the parent company of five tobacco corporations, Altria also manufactures and sells the Copenhagen, Skoal, Red Seal, Husky, and Black & Mild tobacco and smokeless tobacco brands. Specializing in so-called “sin industry” products, Altria also owns a wine business and holds a 27% stake in beer company SABMiller (SBMRY.PK), the world’s second-largest beer brewer by volume, behind only Anheuser-Busch Inbev (NYSE: BUD), according to Bloomberg. Since smoking has such a negative buzz and many cities enforce anti-smoking by-laws, you’d think Altria would be pining for customers. But,… Read More

As an income investor, I’m always looking for companies likely to raise dividends sooner rather than later. Right now, I see good potential for dividend growth in a small corner of the REIT (real estate investment trust) universe — health care REITs. These REITS, which invest in hospitals, rehabilitation facilities and senior retirement centers, delivered a 69% increase in dividend payouts in 2010 — the largest in the industry, according to SNL Financial data. Even better, health care REITs are… Read More

As an income investor, I’m always looking for companies likely to raise dividends sooner rather than later. Right now, I see good potential for dividend growth in a small corner of the REIT (real estate investment trust) universe — health care REITs. These REITS, which invest in hospitals, rehabilitation facilities and senior retirement centers, delivered a 69% increase in dividend payouts in 2010 — the largest in the industry, according to SNL Financial data. Even better, health care REITs are expected to repeat this performance by again producing the highest REIT dividend payout in the first half of this year, according to Bloomberg data. #-ad_banner-#Health care REITs are poised to grow dividends because of more than $11 billion of industry acquisitions last year. During the real estate meltdown, these REITs were able to acquire properties at bargain prices from private sellers and grow their stream of rental income. As REIT income rises, dividends go up, since these companies are required by law to distribute the majority of their income to shareholders as dividends. An added benefit is that health care… Read More

As an income investor, should you be worried about inflation? You bet. On an annual basis, prices were up 2.7% in March. That’s the highest mark since December 2009. Cotton prices are up more than 170% in the past year. Oil had increased by 40% through mid-April. Copper, corn and wheat prices registered double-digit gains in the first three months of 2011 alone, from the same period last year. In the past six months, Kraft (NYSE: KFT), Kellogg’s (NYSE: K) and McDonald’s (NYSE: MCD) have all… Read More

As an income investor, should you be worried about inflation? You bet. On an annual basis, prices were up 2.7% in March. That’s the highest mark since December 2009. Cotton prices are up more than 170% in the past year. Oil had increased by 40% through mid-April. Copper, corn and wheat prices registered double-digit gains in the first three months of 2011 alone, from the same period last year. In the past six months, Kraft (NYSE: KFT), Kellogg’s (NYSE: K) and McDonald’s (NYSE: MCD) have all put through price increases to consumers. Nike (NYSE: NKE) and Whirlpool (NYSE: WHR) have done the same. Wal-Mart (NYSE: WMT) CEO Bill Simon has said he thinks inflation “is going to be serious.” He warned that recent transportation-related cost hikes will be passed through to shoppers. This means the amount of income you’re earning may not keep pace with how much prices are rising — especially if you are retired and living on a fixed income. If you own long-term bonds, such as 30-year U.S. Read More

Income investors disappointed by yields on U.S. stocks are looking outside America’s borders for bigger dividends. Emerging markets offer dividend opportunities, of course, but some investors consider them to be too risky. However, there is another market closer to home where growing dividends can be found. I’m… Read More