All Posts Tagged With: "payout ratio"

Dividend-Paying Stocks: 5 Pharmaceutical “Cash Machines”

Some investors consider dividend-paying stocks to be the territory of boring, low returns. I strongly disagree. I think they can be pretty exciting.

Yes, dividend-paying stocks are usually more predictable. But after the gut-wrenching 12 months we have been through, “dull” suddenly becomes attractive. And it can be profitable as well. Studies of historic stock returns show that the combination of consistent dividends and an increasing stock price can offer powerful returns that out-strip the market averages.

When I search for stocks, I am always more interested in solid dividend payers that reward owners with cash. One of my favorite mantras is…

8Sep2008 | Investment U | Comments Off | Continued

A High Dividend Utility Stock: TRP

In these uncertain times, it’s important to balance your portfolio with a good mix of high yielding stocks. I will avoid touching upon REITs and Financial stocks for the time being because I’m unsure as to whether the worst is over. I’m the kind of guy who’s not interested in pharmaceutical plays, such as Pfizer (PFE), since I highly doubt its 6.4% yield. Looks unsustainable to me, especially when you consider the fact that it has a payout ratio over 100%.

Then, I turned to the utility sector and found TransCanada (TRP). And let me tell you — it’s an attractive…

11May2008 | Guest Contributor | Comments Off | Continued
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