As an income investor, I’m always looking for companies likely to raise dividends sooner rather than later. Right now, I see good potential for dividend growth in a small corner of the REIT (real estate investment trust) universe — health care REITs. These REITS, which invest in hospitals, rehabilitation facilities and senior retirement centers, delivered a 69% increase in dividend payouts in 2010 — the largest in the industry, according to SNL Financial data. Even better, health care REITs are… Read More

As an income investor, I’m always looking for companies likely to raise dividends sooner rather than later. Right now, I see good potential for dividend growth in a small corner of the REIT (real estate investment trust) universe — health care REITs. These REITS, which invest in hospitals, rehabilitation facilities and senior retirement centers, delivered a 69% increase in dividend payouts in 2010 — the largest in the industry, according to SNL Financial data. Even better, health care REITs are expected to repeat this performance by again producing the highest REIT dividend payout in the first half of this year, according to Bloomberg data. #-ad_banner-#Health care REITs are poised to grow dividends because of more than $11 billion of industry acquisitions last year. During the real estate meltdown, these REITs were able to acquire properties at bargain prices from private sellers and grow their stream of rental income. As REIT income rises, dividends go up, since these companies are required by law to distribute the majority of their income to shareholders as dividends. An added benefit is that health care… Read More

Income investors disappointed by yields on U.S. stocks are looking outside America’s borders for bigger dividends. Emerging markets offer dividend opportunities, of course, but some investors consider them to be too risky. However, there is another market closer to home where growing dividends can be found. I’m… Read More

Turmoil in Libya and other places in the Middle East have caused capital to flow out of equity markets and into traditional safe havens such as gold and silver. Surprisingly, one of the equity sectors that was least affected by the shift was emerging… Read More

My colleague, High Yield Investing newsletter guru Carla Pasternak, often advises subscribers to look off the beaten path for the best yields. Sometimes, the best dividends can be found in asset classes that are… Read More

Have you ever wondered what it would be like to trade stocks alongside corporate insiders? There is a way you can do this — and it is perfectly legal. Information about insider share purchases and sales is readily available to anyone who wants to view it. That’s because corporate officers,… Read More

New income investors sometimes make the mistake of looking no further than a stock’s current dividend yield. After all, a stock such as biotech firm PDL BioPharma (NASDAQ: PDL) looks mighty enticing, based on its 10% yield. But looks can be misleading. A closer look at PDL reveals a dividend that may be in trouble. The company’s net income fell by more than 50% last year, and PDL paid out more in dividends than it earned as income. The company earned $92 million, but paid $130 million in… Read More

New income investors sometimes make the mistake of looking no further than a stock’s current dividend yield. After all, a stock such as biotech firm PDL BioPharma (NASDAQ: PDL) looks mighty enticing, based on its 10% yield. But looks can be misleading. A closer look at PDL reveals a dividend that may be in trouble. The company’s net income fell by more than 50% last year, and PDL paid out more in dividends than it earned as income. The company earned $92 million, but paid $130 million in dividends. When earnings decline sharply, even blue-chip companies can sometimes find their dividends in danger. A good example is General Electric (NYSE: GE), which was forced to trim its dividend by two-thirds during the economic downturn. Quarterly payments dropped from $0.31 to just $0.10. [See: “Forget GE, Buy These Stocks Instead”] Another high-profile casualty of the downturn was oil refiner Valero Energy (NYSE: VLO). Valero cut its quarterly dividend from $0.15 to $0.05, which is where the dividend remains today. So how do you protect yourself… Read More

Would you be interested in a simple investment strategy that allows you to capture more dividends? Savvy income investors can use a neat little trick that does just that. It’s not hard, but it will require a little research. The rewards can be great — you can easily earn yields… Read More

Last week, I mentioned the S&P Dividend Aristocrats list as one of my favorite starting points for researching income stocks. To make this list, companies must have increased dividends for at least 25 consecutive years. It is mostly U.S. companies that make up the… Read More

When I’m looking for reliable income stocks, my favorite starting point is the Dividend Aristocrats Index that Standard & Poor’s updates every year. To make this list, companies must have increased dividends for at least 25 consecutive years. This is a major accomplishment and only a select few… Read More

Stock prices have rallied more than 20% in the past 12 months, but it is still possible for investors to find bargains — if they are willing to do a little research. Investing in underpriced stocks often requires patience, since the expectation is generally for a gradual rise in value. But sometimes these stocks attract the attention of corporate raiders and shoot up overnight. This recently happened with Clorox Corp. (NYSE:CLX). An investor group led by Carl Icahn determined Clorox was undervalued and purchased 9% of the outstanding stock, which resulted in surge of about 9% in… Read More

Stock prices have rallied more than 20% in the past 12 months, but it is still possible for investors to find bargains — if they are willing to do a little research. Investing in underpriced stocks often requires patience, since the expectation is generally for a gradual rise in value. But sometimes these stocks attract the attention of corporate raiders and shoot up overnight. This recently happened with Clorox Corp. (NYSE:CLX). An investor group led by Carl Icahn determined Clorox was undervalued and purchased 9% of the outstanding stock, which resulted in surge of about 9% in Clorox’s share price within two trading days. Before Icahn’s investment, Clorox shares had been trading for 16 times trailing earnings and yielded more than 3%. [To find out what else Icahn has been buying, go here.] #-ad_banner-# I set out to find undervalued wallflowers that missed the market rally by running a screen for mid-cap and large cap stocks that trade at price-to-earnings (P/E) multiples well below the S&P 500. My screen looked at both trailing 12-month P/E and forward P/E multiples. Read More