3 Quality Dividend Stocks to Jump-Start Your November

With several companies on the cusp of ex-dividend, here are three dividend-paying stocks that reward income investors, year in and year out.
By Siddhi Bajaj ,

There's no denying a simple fact: Investors love dividends.

While high-growth companies may reinvest their profits to achieve long-term goals and targets, there are others like IBM that enjoy a history of consistent dividend payouts.

With several key companies going ex-dividend next week, here is your chance to cash in on that dividend-rush. We take you through their dividend stories.

INTC

data by

YCharts

Intel Corp (INTC) - Get Report  November 4

If dividend history is anything to go by, Intel Corp. has maintained a promising and consistent track record. The company paid out cash dividends of $0.45 annually even at the height of the financial crisis and has consistently grown every year. This calendar year, too, the company increased its dividend by 7% over the last year to currently pay shareholders $0.96 per share.

At a roughly 3% dividend yield, Intel is now neck and neck with Microsoft and Cisco Systems. In terms of earnings, the tech giant has beaten analysts' estimates in three of the last four quarters and it's a trend likely to continue.

In market comparison, not only has Intel topped the S&P 500's overall yield of 2.06%, at 14.5 times price-to-earnings, it is also significantly lower than the industry average of 76.5. It also outperformed the S&P 500 since the start of September this year. While the index has since then been in the negative, Intel has spiked 17% in the same period.

Intel's state-of-the-art manufacturing processes should drive a robust competitive edge to muscle out budding rivals through speed and performance.

PFE

data by

YCharts

Pfizer Inc (PFE) - Get ReportNovember 4

Pfizer's been witnessing a dream run these last few months.

Firstly, its $15.2 billion acquisition of injectable drugs and biosimilars company Hospira earlier this year means that it now has a wider array of products on offer.

Secondly, its breast cancer drug Ibrance has got off to an early and strong start, receiving regulatory approvals two months ahead of schedule.

Finally, next on the cards is Pfizer's possible acquisition of Ireland's Allergan, which would translate to lower taxes and release Pfizer's funds that are stuck in international operations.

Pfizer has delivered an annual dividend of $1.12, slowly but steadily rising since 2009. Its yield of 3.31% beats the S&P 500's yield by a fair distance and the stock itself grew by 8% in 2015, compared to 4% for the S&P 500 health care sector and 3% for Nasdaq health care.

Combine all this with organic growth drivers -- observed in the company's latest earnings -- and you are looking at a potential star performer in your portfolio.

CMS

data by

YCharts

CMS Energy Corp (CMS) - Get ReportNovember 4

For those who subscribe to dividend growth investing, this Ohio-based natural gas and electricity provider is a safe bet. From 2007 through 2015, CMS Energy Corp has had a streak of consistently growing dividend payouts, from $0.05 in 2007 to $0.29 in 2015. The dividend yield is also at a healthy 3.2%.

While the S&P 500 Utilities and PHLX Utility Index have fallen 8% and 11% respectively so far this year, CMS has jumped 3%. Research firms such as Argus are bullish on the stock, displaying confidence in the electric utility business of the firm, which has consistently grown earnings and exhibited a reliable capital investment plan.

Quarter after quarter, CMS has shown commendable operating performance, with latest quarterly earnings growing 57% year-over-year, with improved gross and operating margins. With excellent cost optimization and an enhanced regulatory environment, the company is set to grow over the long haul.

Looking for high-yielding stocks that pay dividends year after year, regardless of market conditions? Click here for a full list.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.

Loading ...