5 Dividend Stocks to Buy in 2012

Dividend Stocks

Mastery recommends 5 stocks with growth potential and a dividend to boot.

Mastery is interested in stocks that will actually increase this year, throw in a dividend and its the perfect combination for a valued based stock.  Making the cut early this year are the following dividend stocks:  Verizon (VZ), New York Mortgage Trust, Inc. (NYMT), Microsoft (MSFT), CenturyLink, Inc. (CTL) and Corning Inc. (GLW). 

 

CORNING
Corning Inc (GLW) shares have traded between $11.51 and $23.43 over the past 12 months.  Corning shares are now trading with a P/E Ratio of 7.1 and EPS of 1.77.  GLW is trading 8% from its 52-week low and pays a 2.4% annual dividend yield.  Corning is a household name and with Gorilla Glass now part of its arsenal there's plenty to like about this beaten down stock.  On Friday Corning closed at $12.62, its trading at a great entry point.  For more on why Corning deserves a look read Stock to Buy on Weakness: Corning.

VERIZON
Verizon (VZ) shares closed at $37.21 on Friday, they now pay a 5.37% annual dividend yield.  VZ shares have traded between $32.28 and $40.48 over the past 12 months.  Verizon shares have a P/E Ratio of 43.9 and EPS of 0.85.  VZ shares have fallen 6.4% over the past 30 days.  Reasons to buy Verizon are FiOS cable service, 4G mobile broadband network, and their upcoming video-streaming service to challenge Netflix.

NYMT
New York Mortgage Trust, Inc. (NYMT) pays out 25 cents every quarter, that clocks in at a 14.2% annual dividend yield for the year.  New York Mortgage Trust trades at $7.04 a share, the stock is trading in the middle of its 52-week range of $6.04 to $7.98.   NYMT is a self-advised real estate investment trust (REIT).  What we like about them is a large part of NYMT’s portfolio is in LIBOR-adjusting business loans, which yield more as rates increase.

CENTURYLINK
CenturyLink, Inc. (CTL) pays out a 7.78% annual dividend yield.  CTL closed at $37.26 Friday and its ed between $31.16 and $45.34 over the past 12 months.  CenturyLink Inc shares are now trading with a P/E Ratio of 21 and EPS of 1.78.  CenturyLink is engaged primarily in providing a range of communications services, including voice, Internet, data and video services.

MICROSOFT
Microsoft (MSFT) needs no introduction and recently Wall Street has finally comeback to the stock.  In 2012 shares of MSFT have jumped 12%.  Despite the huge move MSFT pays a 2.74% annual dividend yield.  With Windows 8 on the horizon, Mastery simply loves Microsoft.  We've gone to bat for the company numerous times and told our readers to buy in December before the big move.  Recall our articles Console Stocks All Trading Near Lows and Microsoft Rallies: Told you So.

CHARTLANDIA

 

MSFT

 

VZ

 

NYMT

 

CTL

 

GLW

Jan 30th -- Taking the latest price targets from localizedusa.com/ shows how divided the analysts are on rating Corning (GLW).


Goldman Sachs says $11.  RBC Capital has $16.  Morgan Stanley $12.  $15 for UBS.


Here's how they come in from the ratings last week:


CO.    Price         PT   % Change
GLW  $12.60   $11.00  -12.7%
GLW  $12.60   $16.00  27.0%
GLW  $12.60   $12.00  -4.8%
GLW  $12.60   $15.00  19.0%
   
   Average  7.1%


 

Can anyone explain to me how VZ can have a PE of 43 when Apple is growing 100% per year and has a 12 PE?