This Day On The Street
Continue to site
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

3 High-Yield Stocks That Could Easily Boost Dividends

These projects should result in cash flow 30% to 50% higher in the next three years compared with the previous three years. Since listing American depositary receipts (ADRs) on the New York Stock Exchange seven years ago, Shell's earnings have grown more than 75%. The company produces $37 billion a year of cash flow and has an exceptional balance sheet, showing $11 billion of cash and debt at only 16% of capital.

With payout at only 30% of earnings, Shell's dividend looks very secure. Shares offer a rich 4.9% yield. While Shell hasn't increased the dividend in three years, a modest increase is planned in 2012.

Risks to consider: BHP shares have a high 1.5 beta, which means the stock is roughly 50% more volatile than the overall market. CA faces increasing competition from tech giants IBM (IBM) and Hewlett-Packard (HPQ), as well as earnings challenges because of the eurozone crisis. The Dutch government takes a 15% withholding tax on Shell dividends, though U.S. investors can reclaim that from the Internal Revenue Service as a tax credit.

Action to take: All three of these stocks carry high yields, yet each of these companies could easily afford to raise dividends. My top pick overall is BHP because of its control over scarce assets and the diversity of its revenue sources, which reduces risk. CA is attractive based on a growing dividend and unusually high yield for a technology stock. Shell should appeal to investors who want a rich dividend and a pure energy play.

>>To see these stocks in action, visit the 3 High-Yield Stocks That Could Easily Boost Dividends portfolio on Stockpickr. Lisa Springer does not personally hold positions in any securities mentioned in this article.

StreetAuthority LLC owns shares of BBL in one or more if its "real money" portfolios.

Also see:
  • 3 High-Yield Stocks with Heavy Insider-Buying
  • Why the Dow Could Hit 20,000 by 2015
  • This 'Forever' Stock is up 13,000% in 40 Years . . . and it's STILL a Great Investment
  • 3 of 3

    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
    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
    Real Money

    More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

    Product Features:
    • Access to Jim Cramer's daily blog
    • Intraday commentary and news
    • Real-time trading forums
    Only $49.95
    14-Days Free
    14-Days Free
    AAPL $93.89 0.20%
    FB $101.95 0.04%
    GOOG $683.40 0.04%
    TSLA $150.92 0.30%
    YHOO $27.04 1.00%


    Chart of I:DJI
    DOW 15,957.61 +297.43 1.90%
    S&P 500 1,860.16 +31.08 1.70%
    NASDAQ 4,328.41 +61.5730 1.44%

    Free Reports

    Top Rated Stocks Top Rated Funds Top Rated ETFs