Tickers in this Article: ELNK, PTNR, TKC, EEP, EPD, MWE, NRGY
Distributions are nice, but you need a company with a record of paying out and the earnings to support it. Payout ratios will let you know the percentage of earnings going out and if a low payout ratio can't guarantee future payments. If profits are growing, then your chances of getting a piece of them is higher. These companies have a track record of growing annual earnings per share over the last five years, and they have solid dividends.

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Company Dividend Yield Annual EPS Growth 5 Yrs. Market Cap
Earthlink Inc. (Nasdaq:ELNK) 7.2% 18.2% $957M
Partner Comm (Nasdaq:PTNR) 7.6% 36.9% $3.1B
Turkcell il-adr(NYSE:TKC) 4.9% 18.7% $13B

EarthLink Inc. (Nasdaq:ELNK) has seen a steady increase in stock price over the last three months, contributing to its 3.4 P/E ratio. On April 27, 2010, management had its Q1 earnings call in which chairman and CEO Rolla Huff explained that last quarter had better results than historical trends would have predicted. Seeing as how ELNK has grown earnings per share 12% in the last five years this is good news for investors. Contributing to this positive trend was a focus on customer retention and a reduction in churn, according to Huff. (These option strategies allow traders to play on earnings announcements without taking a side, read Profit From Earnings Surprises With Straddles And Strangles.)

Internet is no longer a luxury for many households, and has crept into the necessity bin. While most could survive without it, few would want to even think of the scenario. Earthlink also announced the approval of a 14% increase in its dividend to 16 cents per share per quarter. This brings the dividend to 7.2%. As more businesses build their models around the internet, and internet movies and gaming gains traction, Earthlink will be in position to benefit. Especially as premium bandwidth packages become the necessity for watching movies, download speeds and gaming.

Oil And Gas

Company Dividend Yield Annual EPS Growth 5 Yrs. Market Cap
Enbridge Energy (NYSE:EEP) 7.8% 9.7% $5.9B
Enterprise Products Partners (NYSE:EPD) 6.2% 18.5% $22B
MarkWest Energy Partners (NYSE:MWE) 8.1% 16.9% $2B
Inergy, L.P. (Nasdaq:NRGY) 7.2% 11.3% $2.5B

Enbridge Energy (NYSE:EEP) transports and stores natural gas, petroleum and crude oil. Natural gas has been hitting extreme lows recently, supplies out on Thursday April 29 show stockpiles have gone up more than what was expected. June delivery broke below the $4 mark per million British thermal units, even after the new method for tracking gas supplies was introduced by the U.S. Energy Information Administration. Enbridge Energy released their first-quarter results on April 27, 2010, with a 79% increase in net income per unit, from 49 cents in last year's same quarter to 73 cents. On top of that, the distribution of $1.0025 keeps the yield at 7.8% and will be paid on May 14, 2010 to every holder on record. The ex-dividend date is May 5, 2010. As prices climb like crude oil has recently done (above $85/bbl) transporters and storage companies could see increased demand. (Learn more in this FAQ: If I sell my shares before the ex-dividend date will I still get the dividend?)

Bottom Line
Although all of these are dividend-paying stocks, they reside in the technology and energy sector, which could see increased volatility. In bull markets like the one we've seen over the last 52 weeks you would not want to be looking to hard at consumer staples, but it also depends on your investment objectives. Since last April the S&P 500 is up over 45%, and high beta stocks are going to participate in the gains of a climbing market. A solid dividend, and the earnings to back it up, might be just what you are looking for. (To learn more, see Dividend Facts You May Not Know.)

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