Dividend Growth Stocks for 2012
Verizon Communications Inc. (VZ), New York Mortgage Trust, Inc. (NYMT) and Microsoft Corp (MSFT) are three of our favorite stock picks for 2012.
Let's dive into it.
When it comes to a high yield dividend there is no other pick than New York Mortgage Trust, Inc. (NYMT). NYMT pays out 25 cents every quarter, that clocks in at a 14% dividend yield for the year. NYMT shares have held up in 2011, they have a 2.7% YTD return. New York Mortgage Trust trades at $7.17 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.
Now we turn to growth stock potential that still pays a dividend. We go with two solid companies that will do both in 2012, those picks are Verizon Communications (VZ) and Microsoft Corp (MSFT).
DIVIDEND AND GROWTH
Verizon (VZ) is trading close to its 52-week high, just under $40 per share. VZ currently yields a 5% annual dividend working out to 50 cents every quarter.
There's a reason VZ is trading less than 1% away from its 12 month high -- the company is rocking. They have their wireless division, the very popular FiOS cable service, and their 4G mobile broadband network. FiOS can be used with Microsoft (MSFT)'s XBOX Live Kinect interface, they were (are) the first cable provider to come online with the system. When it comes to wireless and iPhone 4 providers, Verizon wears the crown.
In 2012 Verizon will develop its own video-streaming service to challenge Netflix, Hulu, and traditional cable providers as early as next spring.
Simply put, Verizon is on top of its game and 2012 will bring even more success to keep shares climbing to new highs.
Microsoft (MSFT) has lost the faith of Wall Street, its shares have done nothing in the last 12 years. It remains a cash cow revenue producing machine that is overlooked every quarter.
Today Microsoft trades 8% away from its 52-week low around $25.70 a share. It packs a 3% annual dividend yield but then there's its Price to Earnings Ratio. MSFT's P/E is at 9.3 and when you take all their cash into consideration is more around 7.
Lucky number 7, hello value investors.
Why Mastery is warming up to Microsoft is they have a potential catalyst to finally move their shares in 2012 and convince the Street they are more valuable than they seem.
Enter Windows 8. It will run on tablets, PCs, smartphones, and laptops. The desktop and laptop version of Windows 8 is intended to run on systems that use traditional, x86 processors from Intel and AMD. Windows 8 will also run on Nokia's (NOK) phones next year, they have the advantage overseas but not here in iPhone America (for now).
Watch this demo, if this doesn't convince you that MSFT will finally break free from its current zombie revenue machine status then nothing will:
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