2 Solid Stocks with Impressive Yields

06/04/2012 7:45 am EST


Richard Lehmann

Publisher, Forbes/Lehmann Income Securities Investor

It seems like everything yields more than Treasuries these days, but that doesn't mean every dividend is the same. Stick to strong, sustainable dividends in companies like the ones below, advises Richard Lehmann of Income Securities Investor.

Meredith Corporation (MDP)
Current Indicated Yield 5.31%

Meredith is a leading media and marketing company serving American women. It publishes multiple well-known national brands including Better Homes and Gardens, Parents, Family Circle, Ladies’ Home Journal, Fitness, Country Life, Diabetic Living, American Baby, Every Day with Rachael Ray, and FamilyFun.

The company uses multiple distribution platforms, including print, television, online, mobile, tablets, and video, to deliver the messages of its advertising and marketing partners. Meredith Xcelerated Marketing, a digital and customer relationship marketing agency, has added to its capabilities through the acquisition of companies in digital, mobile, social, health care, database, and international marketing.

Meredith has paid a dividend for 65 straight years and has increased its dividend for 19 consecutive years. Fiscal third quarter ending March 31, revenue was $345.5 million and net income was 21.17 million. For the same period the previous year, revenue was $338.9 million and net income was posted at $30.84 million.

This mature company with its solid dividend history could be a good addition for any investor. Buy up to $32.

Omega Healthcare Investor (OHI)
Current Indicated Yield 7.84%

Omega Healthcare Investors, a Real Estate Investment Trust (REIT), provides financing and capital to the long-term health care industry with a focus on skilled nursing facilities. The company owns or holds mortgages on 432 skilled nursing facilities, assisted living facilities, and other specialty hospitals located in 35 states and operated by 51 third-party health care operating companies.

As a source of capital to the health-care industry,. Their goal is to identify long-term investments in quality health-care properties with outstanding operators.

Fourth quarter and full year 2012 revenues were $76.2 million and $292.2 million. Net income was $19.29 and $52.61 million. For the same periods the previous year, revenues were $71.11 and $258.32 million. Net income was $4.97 and $58.44 million.

This common stock would fit a medium or high-risk portfolio. Buy at or below $23.

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Related Reading:

A Good Catch for Dividend Lovers

The Right REIT at the Right Time

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