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4 High-Paying Dividend Stocks To Know
Dividend yield and growth are characteristics that typically do not co-exist in many stocks. However, there are characteristics of stocks that are considered unusual in historical terms but persist today. With one-year treasury yields slightly over 0.25% and five-year yields at about 2%, stocks yielding above these rates provide a higher expected return, and any stock that has expected growth prospects on top of that yield should be an investor's dream. As with all investments though, the risk involved with the business and industry needs to be considered along with the potential returns.
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4 Stocks
Southern Copper (NYSE:SCCO) mines copper and molybdenum in Central and South America. Similar to its bigger peers like Freeport McMoRan (NYSE:FCX), SCCO's stock and profit performance is highly correlated to the price of copper. The supply/demand scenario for copper in the short run can be very volatile but is positive in the long run as emerging countries, most notably the BRIC countries, continue to grow and improve infrastructure. Southern Copper has a 5.9% dividend yield and a one-year expected growth rate of 29%, according to data compiled by Yahoo! Finance.
Potlatch Corporation (NYSE:PCH) is a timber REIT with properties in Arkansas, Idaho, Minnesota and Wisconsin. PCH is leveraged to the recovery in the construction market because it manufactures lumber and plywood as well as sells its land parcels. As the recovery comes into play, PCH's stock should see the growth of 25% expected by analysts for next year. In the meantime, a 5.1% dividend yield should satisfy investors' appetites.
R.R. Donnelley & Sons Company (Nasdaq:RRD) provides pre-media, printing, logistics and business process outsourcing products and services. Outsourcing of these products and services has been trending higher over the past decade, and should continue to follow along this path. RRD has a 5.7% dividend yield and an expected growth rate of 21% for the next year.
New York Community Bancorp Inc (NYSE:NYB) is a bank holding company for New York Community Bank and New York Commercial Bank, offering products and services in four states (New York, New Jersey, Florida and Arizona). NYB, like most banks, has experienced the fallout from the woes in the mortgage and loan market, yet has come out in a strong position delivering above average ROE's relative to its peers. The company offers a 6.2% dividend yield and a one-year expected growth of 15%.
The Bottom Line
These four stocks go against the grain when it comes to high dividend yield and strong growth. They demonstrate that high yield is not limited to the traditional utility and, unlike the utility, can be accompanied by strong growth - a winning combination. (For more stock analysis, take a look at Big Dividends In Consumer Goods.)
Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!
4 Stocks
Southern Copper (NYSE:SCCO) mines copper and molybdenum in Central and South America. Similar to its bigger peers like Freeport McMoRan (NYSE:FCX), SCCO's stock and profit performance is highly correlated to the price of copper. The supply/demand scenario for copper in the short run can be very volatile but is positive in the long run as emerging countries, most notably the BRIC countries, continue to grow and improve infrastructure. Southern Copper has a 5.9% dividend yield and a one-year expected growth rate of 29%, according to data compiled by Yahoo! Finance.
Potlatch Corporation (NYSE:PCH) is a timber REIT with properties in Arkansas, Idaho, Minnesota and Wisconsin. PCH is leveraged to the recovery in the construction market because it manufactures lumber and plywood as well as sells its land parcels. As the recovery comes into play, PCH's stock should see the growth of 25% expected by analysts for next year. In the meantime, a 5.1% dividend yield should satisfy investors' appetites.
New York Community Bancorp Inc (NYSE:NYB) is a bank holding company for New York Community Bank and New York Commercial Bank, offering products and services in four states (New York, New Jersey, Florida and Arizona). NYB, like most banks, has experienced the fallout from the woes in the mortgage and loan market, yet has come out in a strong position delivering above average ROE's relative to its peers. The company offers a 6.2% dividend yield and a one-year expected growth of 15%.
The Bottom Line
These four stocks go against the grain when it comes to high dividend yield and strong growth. They demonstrate that high yield is not limited to the traditional utility and, unlike the utility, can be accompanied by strong growth - a winning combination. (For more stock analysis, take a look at Big Dividends In Consumer Goods.)
Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!
by
Kristina Zucchi, CFA
Kristina Zucchi, CFA, is a freelance financial writer, investor, and consultant. For over a decade, she has worked as an equity analyst for buy-side investment companies and in the private equity sector. Kristina's consulting work has focused primarily on cyclical, industrial and healthcare companies, while she has also written extensively for publication on topics pertaining to investments and security analysis.
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