5 Dividend Paying Stocks Killing the Market Despite the Fed

By
A A A

  Dividends

Dividend yields will often fall in low interest rate environments (usually due to a slow economy) and bull markets (stock returns tend to outpace dividends.) When you combine those two factors over the last 18 months the average dividend yield available in the S&P 500 has only been lower during the stock bubble of 2000-2001. This is not a great sign for stocks over the long term but it does mean that there are a few firms who are really standing out in contrast. We should expect to see dividend yields remain low while the Fed keeps interest rates near zero.

Windstream ( WIN ) provides high-speed and telephony services to its customers, clearly a growth industry today. The company paid a nearly 8% dividend yield most recently and has been up 24% in prices year to date. From a technical perspective, Windstream ( WIN ) is above near term resistance levels and could hit $15 per share by the end of the year.

WIN

Altria Group ( MO )
through its subsidiaries manages the sales and manufacture of wine and tobacco products. The company paid over a 6% dividend yield most recently and has been up an incredible 47% in prices year to date. From a technical perspective, Altria Group ( MO ) has completely broken near term resistance levels and could hit $34 per share.

MO

Glaxo SmithKline ( GSK ) is engaged in the discovery, development, manufacture, and marketing of health related products. The company paid a nearly 5% dividend yield most recently and has been flying up 18% in prices this quarter. From a technical perspective, Glaxo SmithKline ( GSK ) is above near term resistance levels and could hit $43 per share, a resistance based on the highs of 2009.

GSK

EarthLink ( ELNK ) provides a wide range of Internet services to their consumers, a growing industry today. The company paid a 7% dividend yield most recently and has been up over 15% in prices year to date. From a technical perspective, EarthLink ( ELNK ) we have near term resistance of $9.30.

ELNK

Southern Copper Corp ( SCCO ) is involved in the mining, smelting, and refining of mineral properties. The company paid a 4% dividend yield most recently and is up an unbelievable 22% in prices month to date. From a technical perspective, Southern Copper Corp ( SCCO ) is at near term resistance levels.

SCCO

Investing for dividends can be a productive way to smooth returns over the long term. It represents a pro-shareholder attitude from management and can be compounded for even higher returns over the long term. You can learn more about investing in dividend paying stocks in the videos below.

BASICS Turbocharge Your Dividend Strategy

BASICS Dividends or Growth - You Don't Have to Choose



Image Courtesy of SquekyMarmot

 


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Stocks

Referenced Stocks: ELNK , GSK , MO , SCCO , WIN

Learning Markets

Learning Markets

More from Learning Markets:

Related Videos

Stocks

Referenced

Most Active by Volume

34,444,050
  • $10.511 ▲ 12.42%
33,803,585
  • $103.3299 ▲ 0.81%
30,842,480
  • $16.111 ▲ 0.13%
26,413,888
  • $20.19 ▲ 3.17%
22,788,728
  • $12.625 ▲ 8.09%
20,197,614
  • $75.72 ▲ 1.20%
18,661,421
  • $50.90 ▲ 2.31%
16,504,339
    $3.63 unch
As of 9/2/2014, 01:10 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com