Sick and tired of your money sitting in a bank account earning almost no interest or in bond funds which all the financial gurus are now saying are entering a bear market?
There’s hope.
With the recent market pullback there are quite a few stocks that are now paying juicy dividends. By “juicy”, I mean over 5% and have been consistently paying them. Some are companies you would recognize immediately and others are making their money in the emerging market countries and might be below the radar of U.S. investors.
In running a screen to find these companies, I also added in a Zacks Rank of 3 or higher, so I feel like the earnings story is a pretty good one with this list of companies. Analysts are forecasting double digit earnings growth for many of them in 2010 as the global recovery continues.
Surprisingly, it wasn’t hard to find a couple hundred prospects that met my criteria. I eliminated stocks trading under $5 and those with low volume.
Free yourself from low yields. Fall in love with dividend paying stocks (again). It’s not that hard to do. I promise.
Once you start getting those big dividend payments into your account you’ll wonder, “why didn’t I do this before?”
7 Stocks With Juicy Dividend Yields
World Wrestling Entertainment: 8.8% yield
Earthlink: 7.6% yield
CPFL Energia: 7.5% yield
Altria Group: 7% yield
Total S.A.: 6.8% yield
B&G Foods: 6.5% yield
New York Community Bancorp: 6.4% yield
World Wrestling Entertainment (WWE), the sports media and entertainment company, is the highest yielding stock on the list with a dividend yield of 8.8%. It is a Zacks #3 Rank (hold) stock. Analysts expect 22.5% earnings growth in 2010.
Earthlink (ELNK) is still in business. Many people remember it from the mid-1990s when it was in competition with AOL for Internet subscribers. It still competes in the Internet space.
The company raised its dividend in April by 14% to 16 cents from 14 cents. It now rewards shareholders with a yield of 7.6%. Earthlink is a Zacks #2 Rank (buy) stock and is trading at just 9.9x forward earnings.
CPFL Energia (CPL) generates electricity in Brazil. Normally utilities are slow growers, but CPFL Energia is expected to grow 2010 earnings by 25%. The company is a Zacks #2 Rank (buy) stock. It’s trading at 12x forward earnings.
Altria Group (MO), the tobacco giant, has rewarded shareholders with a large dividend yield throughout the financial crisis. The growth story isn’t that great, with earnings only expected to rise about 7% in 2010, but at 10x forward earnings, it’s not a very expensive stock. Altria is a Zacks #3 Rank (hold) stock.
Total S.A. (TOT) is a large French-based integrated oil company. It’s also a Zacks #3 Rank (hold) stock but the growth story looks pretty good in 2010 with earnings projected to climb about 30%. The stock is cheap, with a forward P/E of only 7.
B&G Foods (BGS) manufactures shelf-staple foods like taco shells, canned beans, and maple syrup. The company recently declared its 23rd consecutive dividend. It too is seeing a spurt of growth this year, with earnings forecast to rise by 33%. B&G Foods is a Zacks #2 Rank (buy) stock.
New York Community Bancorp (NYB) is one of those boring regional banks which specializes in deposits and making loans. Remember those?
It has rebounded from the financial crisis and continues to reward its shareholders with a large dividend. Analysts expect earnings growth of 20% in 2010. New York Community Bancorp is a Zacks #3 Rank (hold) stock.
[The author of this article owns shares of WWE and CPL.]
Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor in charge of the market-beating Zacks Value Trader service.
