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How to Find High Paying Dividend Stocks

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Companies Want to Give You Your Very Own Golden Parachute

We'll show you the safest, most effective way to let your money do all the work, while you sit back and collect the checks...

In times when the economy is struggling, and everybody's pulling their belts just a little bit tighter, wouldn't it be nice to just sit back and collect extra income for doing nothing?

I'm not talking about a scam, or some sort of "fraternal" racket, here. No, collecting these checks is much more simple – and it's legal. In fact, companies are begging to give you a check… They're waving free money around, and all you need to do to grab your very own "Golden Parachute" is step forward.

Have you guessed the game yet? Dividends...

Yep, that dry, old investment technique that's not very sexy and doesn't make you rich in a month can actually provide investors with a modest amount of income.

And in these troubling times, dividends can also limit the losses of a stock's share price.

So while they might not provide the exciting, stellar, triple-digit gains that everyone’s portfolio could use right now, dividends have a power that most investors overlook: Predictability. No other investment vehicle in the market today has that.

Dividends: A Powerful Tool

Here’s another quote from Investopedia that’s incredibly germane to today’s markets: "Unless you find stocks at the bottom of a bear market, there is probably only a handful of worthy income stocks to buy at any given time."

Well, folks, we've been in the worst bear market in decades. That means that good quality stocks – some with high yielding dividends – are at rock-bottom prices.

In short, you couldn't find a better time to create your own High-Yield Dividend Portfolio.

Let me tell you about one company that really fits the bill, and will be writing you checks for many years to come.

A recent Forbes.com article noted ten companies that have been "consistently profitable over the last five years and that… [are expected] to post earnings increases next year."

Using their parameters, I found one with even higher yields.

First let me tell you the criteria I used to find this dividend monster… It’s the same as Forbes':

  • Consistent Profitability over Last Five Years
  • Expected Earnings Increase Next Year
  • Debt to Equity Less than 50%
  • Dividend Payout Less than 50% of Net Profits
  • Trailing P/E Ratio Less than 20

Here’s what I found...

Profitable over 5 years? Expected Earnings Increase Debt to Equity Dividend Payout Ratio Trailing P/E Ratio Forward Annual Dividend
Illinois Tool Works (ITW)
5/5
10-11% 39.5% 34% 9.38 3.8%

This stock has a fairly high yield now that the market has whacked its share price across the board. This company is also a large-cap stock, and has international operations or clients.

So let’s look at what Illinois Tool Works (ITW: NYSE) does, and what kind of discount you're getting…

High-Yielding Dividend Monster

ITW is a "“diversified manufacturer of advanced industrial technology." What does that mean? It means ITW makes everything from specialty power conversion devices to commercial food equipment to industrial packing materials. In fact, the company is so diverse that it has 825 businesses in 52 different countries.

Don't let the name fool you, this company is a global leader.

The thing is, ITW's share price has fallen more than 44% in the last year, despite increasing revenues.

In the third quarter of 2008, the company saw a 10.8% boost in revenue. That helped the company boost its quarterly dividend. On October 31, the company announced that it would offer a $0.31 dividend on January 13 to shareholders on record before December 31.

At current prices, that’s nearly a 1% quarterly yield... or nearly 4% for the year.

It’s important to note that this was an increase from the previous quarter. On August 8, the company announced it was upping its dividend payment by 3 cents a quarter. This was in response to 2008’s second quarter results showing an increase of 17% in diluted income per share.

Now that’s a nice "Thank you."

And if you're looking for another nice "Thank you," – a way to profit along with some safety in today's turbulent market – look into a program we call the "13F Disbursement Plan." It allows you to legally skim money from Wall Street firms that have gotten obscenely rich at the expense of ordinary folks like you. This plan could even add $4,570 to $11,450 to your bank account every month, courtesy of the U.S. Government.

Interested? Well, we've prepared a Special Report with all the information you need to get in on this opportunity. You can download your copy of the 13F Disbursement Plan report right now.


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Other Related Topics: Dividend Stocks , Economic Growth , Investment Opportunity , Sara Nunnally

 

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