High Yield Dividend Stocks (CTL, NYMT, VALE)
Fellow Masters, the best 'high yield CD' you can buy will only give you 1 to 1.2% yield that locks your money away for an entire year. We would rather buy a high yield dividend stocks that pay a 8% to %13 dividend yield plus whatever the stock gains in 2012. Making the cut are New York Mortgage Trust, Inc. (NYMT), CenturyLink, Inc. (CTL) and Vale (VALE).
New York Mortgage Trust, Inc. (NYMT) pays out 25 cents every quarter, that clocks in at a 13.89% dividend yield for the year. NYMT shares have held up in 2011, they have a 3.45% YTD return. New York Mortgage Trust trades at $7.23 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, Inc. (CTL) is our next play, they pay a 73 cent dividend every quarter which comes to a 8.23% annual yield. CTL shares have come down around 10% since summer, they now trade around $35.
Zacks called CTL a 'value stock' earlier this month, they said:
There is a lot of value, however. In addition to a P/E under 15, which is what I use as a cut-off for value stocks, it also has a price-to-book ratio of 1.0. A P/B under 3.0 usually indicates "value."
And then there is the yield. Yes, the 8.1% yield IS correct. The company's yield has averaged 5.4% over the last 5 years. Not too shabby.
With CenturyLink, value investors are trading earnings growth for dividend yield. Given what's gone on the last few years, the dividend yield is looking mighty attractive.
Last up is badly Brazilian mining giant Vale (VALE), its stock price just touched a new 52-week low today. VALE shares are at $21, which clocks its dividend at a 8.29% annual yield. The danger is the company may balk on its plans to payout that high yield in 2012.
Vale shares have fallen ever since they reported Q3 net income of $7.89 billion, a decrease from Q2 net income of $10.28 billion. Add to that their balance sheet showed $16.24 billion in cash for the Q3 2011, a decrease from $22.57 billion in Q2. There are risks but now that Vale have hit a new 52-week low it may be time to make a small position.
Best of the Blogs
Scanning and identifying the best blog entries every hour
- How to Leave the European Union | Financial Sense
- Could A Lithium Shortage De-Rail The Electric Car Boom? | ZeroHedge
- Weekend Reading: The Coin Flip Market | ZeroHedge
- Martin Armstrong: "They Will Rig The Game... They Can't Afford A Trump Victory" | ZeroHedge
- Risks Of Loose Money - Exposing The Link Between Monetary Policy And Social Inequality | ZeroHedge
- Caption Contest: Virtually President | ZeroHedge
- Inventory Growth Slowdown Dashes Hopes For Q3 GDP Bounce Back | ZeroHedge
The most relevant financial news and articles from the Internets
- Amazon is testing out a 30-hour workweek | Business Insider
- A stunning photo shows US A-10 Warthogs and Colombian A-29B Super Tucanos... | Business Insider
- One of the key men behind Bill Ackman's bet on... | Business Insider
- I flew coach on the 'world's best airline' — and it wasn't... | Business Insider
- This technology could triple the speed and double... | Business Insider
- US F-22 pilots describe their conflict with Syrian jets while protecting US... | Business Insider
- CITI: If Trump wins, it would be a disaster for the... | Business Insider