High dividend-paying stocks

[Hopeful]

Hi there, ladies and gentlemens. I am looking for a stock or fund that pays big regular dividends and is likely to continue doing so for the next five years.

For example you can buy FRO on the NYSE which has a 15% or so divvy, but has already bolted.

QAN might also be good as it is paying 10% divvies these days, but if oil keeps burning QAN will keep slipping.

I'm interested in only Aussie stocks because I need to feed my bank account to cover interest on a loan for the next five years.

I'd appreciate any ideas , thanks a bunch.

 

[Julia]

Have you considered the alternative of buying high growth stocks (e.g. coal and oil at present) and taking profits on a regular basis to cover the loan repayments?

 

[imajica]

PTN - Prime Retirement trust - 14% dividends - tax deferred

 

[Julia]

PTN - Prime Retirement trust - 14% dividends - tax deferred

Might be paying 14% but if you'd bought 10,000 of these three months ago your capital would have reduced by $1000. The dividend payment divided out to the three month period would be about $250. So you'd be down the drain about $750 in three months.

Hence my point regarding growth stocks as an alternative.

 

[countryboy]

RNY- Reckson New York property Trust
AEZ ANU/UKA European Retail property Trust

Both off highs due to sub prime and centro in Australia. previous dividends have been around 7c for RNY and Aez i think 10c

You asked for growth....as with PTN if they continue to provide the dividend then a rerate back towards $1 is quite possible or you will have a stock paying a 15-20 % yield

no profit guidance to suggest they will not pay divs this year. PTN is worth doing homework on as they may be about to head in a new direction which could be core growth.Change of directors or something i recall reading.

 

[nioka]

My best dividend stock is MCR. The % would depend on price. I chose it because it has increasing earnings, a reasonable PE ratio, plenty of cash on hand, growth potential and a steady hand on the tiller as you could say. DYOR

 

[bennib0i]

Ive been looking at long term stocks which pay high divs aswell. Im currently looking into bank shares as they provide 5-6% FF divs, and seem to hold there value over the long term.

 

[vishalt]

PTN's yield is not sustainable...

If it sounds too good to be true, then it is.

A 10-15% yield, not half the managed funds do that, be careful and do your research.

The business looks okay but still, 10-15%!

 

[Hopeful]

Almost all of the higher divvy paying stocks are in a prolonged downtrend, but these ones may be looking for a bottom right now:

ZFX MMG TAH PBG QAN

I bought some more QAN today but still looking for something else, TAH tickles my fancy , looks like management is the key to TAH - they seem to be doing everything they can to minimise the damage inflicted by greedy state governments.

I've looked at the charts of stocks mentioned in this thread but can't get too excited about them when they look so sick.

 

[Hopeful]

My best dividend stock is MCR. The % would depend on price. I chose it because it has increasing earnings, a reasonable PE ratio, plenty of cash on hand, growth potential and a steady hand on the tiller as you could say. DYOR

Sounds good, but the weekly chart pattern is a falling wedge, I'll keep an eye on it though - it might break the downward sloping trendline above. Cheers.

 

[Hopeful]

PTN - Prime Retirement trust - 14% dividends - tax deferred

I don't like the strong downtrend and low volume and liquidity of this stock. Perhaps if it can start forming a base pattern and make a break above. Cheers.

 

[countryboy]

down to 42c today
broker report from website:

Recommendation Buy
Risk Rating High
Current share price $0.43
12 month target price $0.60
Price range - high/low $0.25 - $1.405
Market capitalisation $252m

APN/UKA European Retail Property Group (AEZ) manages 36 individual retail assets across Europe. After stapling in July 2007, AEZ has expanded into
pan-European asset management, property syndication and commercialisation activities. AEZ is focussed on growing security holder value through a combination of secure income streams and capital growth initiatives. We initiate coverage on AEZ with a Buy, High Risk recommendation and $0.60/security DCF based price target.

Investment View: AEZ has had a tough time with the twin effects of the credit crunch and a difficult European property market. Management has
responded quickly to steady the portfolio and begin the process of restoring security holder value. Strong portfolio of assets. Characterised by
long leases, high occupancy, strong tenants. Earnings cut at interim FY’08. DPS now 9cps p.a. with cash EPS rebased to 8.2cps FY’08. Headroom on debt. RBS has agreed to higher LVRs and lower interest coverage covenants,
easing current pressure on the balance sheet. Immature property market. Europe is undersecuritised and under-supplied in terms of retail
property, providing opportunities for AEZ to export their skill in retail property management.
·Key drivers: Development of pan-European property and asset management business. Diversification of recurrent revenue streams.
· Key Risks: Executing new business strategy,
balance sheet issues, rising cap rates, European
recession, ability to raise third party equity.

Recommendation: Buy with $0.60/security price
target implies a 12 month total return of +45%.

More of this report on the website ....dividend yield is above 15 %..to good to believe maybe !!!!!

 

[kenny]

I agree there are lots of shares out there with appealing yields that could support a loan's interest payments.

Have you considered that buying for income/dividends on the basis of a historical yield in the current volatile market might be a brave strategy?

Researching whether the attractive yield is due to sp collapse or one-off earning spikes or accounting wizardry would be handy. Has the economic situation changed since the last earning period that may lead to changes in EPS? What are the company's earnings forecasts?

One strategy being expoused in some of the finance pages (eg Smart Investor I think) is to consider the much maligned Hybrids or Preference shares which have fallen along with their head stocks but pay a dividend pegged to interest rates plus margin. Of course the reliability to pay dividends and interest payments by the underlying company should be looked into.

Good luck,

Kenny

 

[YELNATS]

IOne strategy being expoused in some of the finance pages (eg Smart Investor I think) is to consider the much maligned Hybrids or Preference shares which have fallen along with their head stocks but pay a dividend pegged to interest rates plus margin. Of course the reliability to pay dividends and interest payments by the underlying company should be looked into.

Good luck,

Kenny

One such opportunity is Suncorp's current offer of CPS preference shares paying quarterly ff dividends at the 3-month bank bill rate + a 3.2% margin, which I think is pretty generous compared to other bank's margins above the bb rate. Min. investment is $2000 and the offer closes June 4.

 

[richardgary]

Article is awesome. I would like to say that high dividend stocks could mean high risk, no matter who you are coping with. Create little investments to start with and roll your cash over afterwards into other high dividend stock investment opportunities.

 

[Ves]

Might be paying 14% but if you'd bought 10,000 of these three months ago your capital would have reduced by $1000. The dividend payment divided out to the three month period would be about $250. So you'd be down the drain about $750 in three months.

Hence my point regarding growth stocks as an alternative.

Just over 4 years later. I am fairly certain you would have a 90% paper loss now. Interesting to read some of the old posts; in this case a very wise contribution.

 

[So_Cynical]

Just over 4 years later. I am fairly certain you would have a 90% paper loss now. Interesting to read some of the old posts; in this case a very wise contribution.

Timing.

25th-May-2008

Pretty much 80% of the top 500 stocks are now trading lower than they were in May-2008.

Add on another 9 or 10 months and its a near 100% turn around with at least 80% of the top 500 trading higher.

 

[Ves]

Timing.

PTN is in liquidation. Timing won't save you there. It certainly isn't going back to 80c any time soon!

I agree with your point in general, however.

 

[kenny]

Four years on and I think the OP's request for high dividend yield plays is still a valid consideration. One means of securing a base performance for a portfolio could be to have a portion devoted to providing a steady stream of income. Pay for interest in loans, lifestyle needs or part of a "Core & Satellite" approach.

The question is what are the reliable yield plays in today's market?

In the last six months or so, 20/20 hindsight would have said no-brainer solutions such as TLS and CBA have given both capital growth and a good fully franked return. Both could be said to be at least fair value (or over) at current levels.

So where does the income hungry investor turn to beyond the banks and telcos?

Retail has been hammered and offer tempting historical yields but are these sustainable with perceived structural issues looking ahead? MYR at ~11%, PBG & GUD ~10%.

IT Services is alluring too with stayers like OKN at ~10%.

Or do we look towards the Media sector for more due diligence? SWM, SXL, APN, SGN & PRT all offer near double digit historicals but are they sustainable? Is the Media sector due for a shakeup with the shift to broadband based viewing?

Lastly, do we look at the gaming staples TTS & TAH which still offer good returns while their licences are intact?

I'd appreciate any insights.

Cheers,

Kenny