Due to the recent severe market selloff, many investors are looking for stability with high-yield stocks that continue to raise dividends despite all of the concerns over the subprime mortgage crisis and the higher costs in the corporate lending markets.
The highest-yielding stock on Stockpickr's list of
, which yields 5.5% and just increased its quarterly dividend by 13% to 85 cents a share. This cigarette manufacturer has suffered during the last couple of months due to concerns about higher tobacco taxes and more regulations, in addition to second-quarter earnings falling below Wall Street expectations.
The drop in the price of the stock has obviously increased the stock's yield. However, the stock has more positives than just a high yield. It offers a
price-to-earnings ratio of 15.7, which is below the industry average. The company has an operating margin of 26.3% and a return on equity of 16.2%.
Reynolds also makes the list of
, a Stockpickr portfolio that lists the major tobacco companies that pay a dividend of more than 2%. Another company that shows up in this portfolio is
, which pays a yield of 7.4%. Vector has a highly favorable P/E/growth, or PEG, ratio of 1.8, and its latest quarterly earnings showed a 131% year-over-year increase. The company is also a favorite of Jim Cramer and
, who owns 20% of the company.
Another stock included on the High-Yield Tobacco list is
, which generates a yield of 4.1%. Altria has a P/E ratio of 12.7 and a PEG of 2.1.
Bank of America
is another high yielder that just increased its dividend, subprime and mortgage problems notwithstanding. The bank pays an attractive yield of 5.5%, recently increasing its quarterly payments by 14% to 64 cents. The stock has a low P/E ratio of 9.9 and a PEG of 1.3. Bank of America has an operating margin of 57.5%, higher than the industry average and the operating margins of its major competitors. Quarterly earnings were up 5.2% year over year.
Other bank stocks with high yields can be found on the list of
, which includes such banks as
TrustCo Bank Corp. of New York
, which has a yield of 6.8%, a P/E of 17.1 and an operating margin of 64.4%. Another high-yielding bank on the list is
, which has a yield of 6.3%, a P/E of 13 and PEG of 2.3.
is third on the list of high-yield stocks with recently raised dividends. The real estate investment trust, which develops and manages shopping centers, pays a yield of 4.3%, having recently increasing its dividend by 11.1%. Kimco has a P/E of 19.3 and a PEG of 1.8. It just reported a 38% increase in funds from operations, a common real estate performance metric that adds back depreciation and other noncash items to net income.
Kimco is also on Stockpickr's
portfolio, which lists stocks that raise their dividends on a regular basis.
, yielding 2.9%, also makes this list. Another stock on the Dividend Growth list is
, which has a yield of 4.7%.
For the entire list of the 10 stocks with recent increases, check out the
Some of the other high-yield portfolios on Stockpickr.com include:
- High-Yield Growth Stocks
- More High-Yield Stocks You've Never Heard Of
- High-Yield Warren Buffett Stocks
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 Stockpickr 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 Financial Times
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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