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 Stocks Paying You Double-Digit Shareholder Yield

Ingersoll-Rand

Ingersoll-Rand (IR) has had a stellar year in 2012, rallying more than 53% on the year. Part of that performance is thanks to the firm's shareholder yield, which weighed in at more than 13% at last count. IR is a diversified manufacturing firm that owns brands ranging from Club Car golf carts to Schlage locks to Trane air conditioners. Clearly, IR has huge exposure to the construction business, a fact that looks attractive as housing numbers heat up.

Ingersoll-Rand owns the leading market position in most of the businesses it operates. That share comes with some attractive attributes as spending moves from a cyclical low onto what are likely to be more normal conditions in the next few years.

Already, construction numbers have shown some enviable upward momentum, and that's been showing through on the top line of IR's income statement in recent years.

Financially, IR is in good shape, with a reasonable debt load and strong cash-generation capabilities. Most of IR's shareholder returns in the last year have come from net share buybacks, a more under-the-radar way to return cash than dividends. But with share prices up so much in the last year, expect dividend boosts to become the firm's favored method of giving you cash. A planned spin-off should free up even more cash in fiscal 2013.

L-3 Communications

Defense electronics maker L-3 Communications (LLL) is another firm that's provided excellent shareholder yield in the last year. The firm has returned a full 19% of its market capitalization in the form of dividends, buybacks, and net share repurchases. The firm's products include communications systems, bomb-detection equipment, and aircraft systems used for reconnaissance and intelligence missions.

Not surprisingly, L-3 is a major defense contractor, earnings 75% of its sales from the DoD. Only around 10% of the firm's sales come from commercial customers, a fact that could change if defense spending gets cut at the hands of the fiscal cliff. To help mitigate the blow, L-3 is spinning off part of its Government Services arm, a move that increases the percentage of sales that come from mission-critical products versus easily cancelled services. Meanwhile commercial sales have room for growth in the next several years, especially as security concerns remain heightened.

3 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!
DOW 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7890 -13.6380 -0.30%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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