Double-digit dividend growers are among our most-important themes for 2019, and stretches across ind...
A Trio of Income Favorites
04/17/2019 5:00 am EST
Income expert Harry Domash maintains a wide variety of portfolios designed to help investors seeking a diversified portfolio of dividend stocks. Here, the editor of Dividend Detective highlights a trio of yield-oriented favorites.
In our Preferreds portfolio, we’re adding one new pick credit-rated investment quality, that is paying a 6.4% market yield. We’re adding Brunswick 6.625% Series B Notes (BC-B) to the portfolio.
Brunswick Corporation (BC) produces a variety of consumer products including outboard boat engines and accessories, as well as billiards, fitness, and game room equipment. These notes recently traded at $25.75 per share, above their $25 issue and call prices.
The market yield is 6.4% and the yield-to-call (1/15/24 call date) is 5.9%. The notes are credit-rated investment quality (BBB-), and Brunswick remains on the hook for any missed dividend payments.
We’re adding two new picks to our Manufacturing & Services portfolio. Both are solid, well-established players, and both pay unusually high dividends. How high? One is at 6.5% and the other pays around 5.2% (estimated).
We’re adding communications giant AT&T (T) to the portfolio. With its share price dropping almost 20% in 2018, AT&T might be a surprising pick.
However, the telecom’s acquisition of entertainment giant Time Warner, although technically approved in June 2018, was opposed by the U.S. Justice Department, and only finally cleared by a federal court in February.
We expect AT&T to exploit Time Warner’s many entertainment industry assets, igniting a growth surge that could surprise analysts. AT&T recently upped its dividend, driving its yield to a surprising 6.5%.
We’re also adding chemical products producer Dow Inc. (DOW), which was just spun off from conglomerate DowDupont, on April 2. Analysts only expect mid-single digit revenue growth, and 10% annual EPS growth.
But newly focused management is likely to exceed expectations. Also, the new Dow plans to pay big dividends, saying it would start by paying $2.1 billion annually, which Barron’s said equates to around $2.80 per share, roughly a 5% yield.
Related Articles on DIVIDEND
Based in Grand Prairie, Texas, Six Flags Entertainment (SIX) is the world’s largest regional t...
Mortgage REITs, also called mREITs, have been bumping along the bottom of their respective trading r...
Income expert Harry Domash maintains a wide variety of portfolios designed to help investors seeking...