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
- The FDIC Reiterates and Corroborates My "F@ck the Fundamentals" Message fron the Fed | ZeroHedge
- Experts See Low Oil Prices for Decades to Come as US Shale Boom Goes Global | Financial Sense
- Schengen Is Cracking – Can the EU Withstand the Pressure? | Financial Sense
- One by One the Central Banks Are Losing Control | ZeroHedge
- Russia Retaliates: Putin Reveals Sanctions Against Turkey | ZeroHedge
- 2015: The Year Of The American Identity Crisis | ZeroHedge
- He Lived Through Hyperinflation, Devaluation And Confiscation: This Is His Advice | ZeroHedge
The most relevant financial news and articles from the Internets
- 7 overseas fashion tech startups spent a week with Google in London — we got... | Business Insider
- The 20 most powerful people in tech | Business Insider
- LG Display plans multi-billion OLED plant | Business Insider
- Ward leads No. 21 Houston to 52-31 win over No. 16 Navy | Business Insider
- Gut wins Aspen giant slalom after Shiffrin fall | Business Insider
- Patti LaBelle spent Thanksgiving with the guy whose viral video helped her sell $2... | Business Insider
- Traditional Pacific farewell for Lomu draws thousands | Business Insider