Welcome to Episode #36 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
In this episode, Tracey is joined by Neena Mishra, the Editor of Zacks Income Investor , which buys stocks and ETFs that pay dividends.
With treasury yields so low, investors are looking for ways to generate income. One way to do that is through buying stocks that pay dividends.
But isn't that boring and old fashioned? Isn't all the real stock market action in buying high growth companies?
Contrary to popular opinion, dividend investing can be fun and lucrative. And many dividend paying companies also have the growth component, so you don't have to sacrifice growth for the payout.
While the big name dividend players are well known, such as Apple and Exxon, Neena and Tracey discuss small and mid-cap stocks you may never have heard of, all with incredible yields over 5%.
Secret Dividend Stocks and ETFs
The REITs are always a good place to look for yield. Apple Hospitality (APLE), a mid-cap hospitality REIT that owns 179 hotels in the Hilton and Marriott chains, is expected to have 2016 earnings growth of 11.6%. It also pays a dividend yielding 6.5%.
BG Staffing (BGSF), a small cap temporary staffing company out of Texas, is seeing big earnings growth in 2016 and also paying a juicy dividend, yielding 6.5%.
H&E Equipment Services (HEES), a small cap equipment rental and sales company, has paid a dividend since 2014. It currently yields 5.7%.
What about ETFs that specialize in dividends?
Neena and Tracey check in on how to play a diverse range of ETF plays. You can buy the large caps through the S&P 500 Dividend Aristocrats ETF (SDY). It is yielding 2.4%.
There's also an ETF for the mid-caps. The ProShares Mid-Cap 400 Dividend Aristocrat ETF (REGL) includes companies that have raised dividends each year for 15 years. It's yielding just 1.5%, however.
Dividends aren't just for retirees anymore.
Be sure to check out this week's podcast for all of the secret dividend stocks that Tracey and Neena dig into, including one company that is yielding 7.5%.
Interested in learning more about the different dividend ETFs that are out there?
Go to these great resources with both US and emerging market dividend ETF plays:
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Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Insider Trader and Value Investor services. You can follow her on twitter at @TraceyRyniec, and she also hosts the Zacks Market Edge Podcast on iTunes.