This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

20 Dividend Stars Among the Mid-Cap Crowd

RadioShack

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Electronics retailer RadioShack (RSH), one of 10 Retail Stock Losers of 2011, has been slumping for quite some time, as sales are actually lower than they were back in 2002. Yet even without any signs of sales improvements, RadioShack has still tossed off lots of profits. Operating cash flow has been above $300 million for each of the last five years.

The current annual payout of 50 cents was hiked this fall from 25 cents, where it stood for eight straight years, securing RadioShack's spot as one of the highest-yielding retail stocks. Still, the company also has enough money left over to maintain a longstanding stock buyback program as well. Shares outstanding have fallen for eight straight years, from 173 million back in 2002 to a recent 100 million.

Yet this retailer has seen sales drop even further in recent months. As a result, the company earned just 11 cents to 13 cents in the fourth quarter, well below the 37 cents a share that analysts had been expecting. Shares were crushed down to around $7, a level not seen since the early 1990's.

>>6 Stocks Reaping the Benefits of Big Buybacks

The question for investors: What does the quarterly shortfall mean for the dividends and the buybacks? It's worth tracking what management has to say about the topic. If the dividend will be maintained at current levels, then the effective yield is now a hefty 6.9%. Management may choose to cut the dividend and focus on the buybacks. Either way, this is shaping up to be an intriguing value play, and you can look for rumors to resurface that the board will look to sell the company or take it private.
3 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AINV $7.20 -0.41%
MDP $50.91 -0.59%
MDC $30.35 1.34%
OHI $35.83 1.65%
RSH $0.31 12.76%

Markets

DOW 17,776.91 +93.33 0.53%
S&P 500 2,081.34 +12.58 0.61%
NASDAQ 4,997.4590 +5.5190 0.11%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs