This Day On The Street
Continue to site right-arrow
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
TheStreet Open House

5 Big Stocks Ready to Pay You Bigger Dividends


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

Get Adobe Flash player

So far, it's been a solid year for shareholders of Covidien (COV). In 2012, shares of the medical device and pharmaceutical firm have rallied more than 25%, besting the broad market by a wide margin. Covidien is a leader in most of the areas that it operates in, focusing on niche medical products (like bariatric bands and instruments for minimally-invasive surgery) rather than trying to compete with the industry's bigger names.

That's part of the reason why COV is spinning off its pharmaceutical business right now. Pharma has been under some significant pressures in the last couple of years, as investors cringe over the loads of patent cliffs plaguing drug revenues. By spinning off pharma, Covidien can shove any discount to its share price onto a new firm. At the same time, spin offs generally unlock considerable value for shareholders. That bodes well for folks who own COV right now.

>>5 Biotech Stocks Under $10 Blasting Higher

More permissive healthcare legislation here at home bodes well for Covidien. With more patients able to pay for the types of treatments that the firm focuses on, sales should move higher in COV's fastest growing segment (the U.S.).

COV currently pays out a 22.5-cent quarterly dividend. While only a 1.6% yield at current price levels, this stock looks capable of hiking its dividend in the next quarter.

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

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
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
COV $106.71 -1.26%
ABC $113.19 0.00%
EMR $56.54 0.00%
EMN $68.71 0.00%
ECL $114.24 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs