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

5 Dividend Stocks Set to Give Shareholders a Raise

T. Rowe Price

Baltimore-based asset manager T. Rowe Price (TROW - Get Report) is posting decent performance this year, buoyed by an equity rally in 2012 that's helped to grow TROW's assets under management -- and its fees. Now, with stellar profitability and ample cash on hand, the company looks well positioned to post a bigger dividend for investors in the next quarter. Right now, T. Rowe pays a 34-cent quarterly payout for a 2.14% yield.

For full disclosure, I like T. Rowe Price -- my first job was at the investment firm. Then and now, T. Rowe Price is evidence that brand matters in the asset management business. In an industry where investors are rightfully suspicious of their investment managers, T. Rowe prides itself on being a good steward for its clients. Managers use conservative strategies, even when exciting trends are spurring reactions at rivals. That means that T. Rowe Price tends to lag fad rallies, but it also means that the firm was able to protect customer money much better than most peers during the Great Recession.

T. Rowe Price's approach has won out in the long-term -- close to 80% of funds are outperforming the rest of the industry over the last decade. As anxious investors give more money to TROW, the firm's fee generation should continue to grow faster than the industry. Just as importantly, outsized exposure to equities means that the firm should benefit disproportionately if this stock rally continues in 2013.

McGraw-Hill Companies

McGraw-Hill Companies (MHP) is another stock that looks primed to boost its dividend payout. The $14 billion publishing firm currently pays a 25.5-cent quarterly dividend to investors, but that number should increase in the next quarter as MHP slowly recovers from the recession. Right now, McGraw-Hill's payout adds up to a 2% yield.

MHP isn't a conventional publisher. Instead, its focus is in providing higher-value content and research through subsidiaries like J.D. Power and Associates, Standard & Poor's, and its namesake educational publishing arm. MHP's focus on trade and education means that higher costs go into creating products, but it also means that the firm can demand bigger prices for its trouble. That's helped to ensure that net margins come in at around 15%, versus tenuous profitability for conventional publishing companies.

4 of 5

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
BA $144.81 0.00%
LVS $51.95 0.00%
NEM $27.01 0.00%
TROW $81.57 0.00%
AAPL $132.54 0.00%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs