With the sharp drops in the stock market recently, investors arelooking more and more toward income-oriented stocks. They figure thatthe dividends can provide a benefit while waiting out the volatilityof the stock market. Stockpickr has put together a list of relatively unknown companies that are paying relatively highdividends, all of which have market caps over $350 million.
One of the highest yielding stocks is
, at arate of 19.6%, based on its payouts for the last four quarters. Thecompany just went ex-dividend on Dec. 27 with a payment of 40cents per share to be paid on Jan. 15.
GateHouse owns over 330community newspapers across the United States and publishes yellowpage and white page telephone directories in northern California. Italso publishes telephone yellow pages on the Internet.
Last month, thecompany completed its $115 million acquisition of several MorrisPublishing Group LLC publications, primarily in the Midwest. Thestock has a forward
price to earnings ratio of 31.
GateHouse is owned by
, a New York-based money manager, founded in1998, which has over $29 billion in assets under management, $10billion of which is in its hedge fund. Fortress is one of the fewpublicly traded hedge fund companies (and pays a fairly high yielditself, by the way, at 5.8%).
Fortress also owns
Brookdale Senior Living
, which has a yield of 7.2%,
Clear Channel Communications
, which pays 2.2%, and
Lehman Brothers Holdings
( LEH),which has a yield of 1%.
Another under-the-radar, high-yield stock is
, thetelecommunications provider in rural and small urban communities,which pays a yield of 12.8%. The company is in the process of takingover
wireline operations in Maine, and expects the MainePublic Utilities Commission to approve the merger shortly. Fairpointhas a P/E of 14, and a PEG of 4.6.
Fairpoint is part of the user-created Stockpickr portfolio called
HighYield Dividend stocks, which includes a diverse mix of stocks,including overseas stocks with high dividends. The portfolio alsoincludes
Medical Properties Trust
, which pays 10.6%, and
, which carries ayield of 6.4%.
( PCU) pays a decent yield of 7.4%. This Phoenix-based company mines for copper, molybdenum, zinc, silver, gold and lead, primarily in Peru and Mexico. Coverage was recentlyinitiated on the company by HSBC Securities, which gave it an"overweight". The stock has a P/E of 12 and a PEG of 11.74.
Southern Copper is in the portfolio of the
, a long-term capital appreciationfund that looks for restructuring plays. The fund has had an averageannual return of 19.94% over the last five years.
Excelsior also holds
, which yields 0.4%,
, which pays 3.7%, and
, whichyields 0.6%.
To see the entire list of the top 10
, including a stock that yields over 27% (and shows up in five professional Stockpickr portfolios), go to
At the time of publication, Altucher and/or his fund had no positions in stocks mentioned, although positions may change at any time.
James Altucher is president of
LLC, a wholly owned subsidiary of TheStreet.com and part of its network of Web properties, and a managing partner at Formula Capital, an alternative asset management firm that runs a fund of hedge funds. He is also a weekly columnist for the
and the author of
Trade Like a Hedge Fund
Trade Like Warren Buffett
. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Altucher appreciates your feedback;
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