Top Dividend Indexes Sporting Average Yields Above 7%
Even after equities’ huge run over the last year, select dividend-oriented sectors are still offering handsome yields for income-focused investors.
At the top of the list is the Royalty Trusts Index, whose components, on average, offer a yield of 8.3%. These typically commodity-tied names include BP Prudhoe Bay Royalty Trust (NYSE: BPT – News), Permian Basin Royalty Trust (NYSE: PBT – News), and Hugoton Royalty Trust (NYSE: HGT – News), all of which sport annualized payouts that result in yields above 8%. All three are also strongly in positive territory over the last week.
The Mortgage Investment Stocks Index components bring an average yield of 7.5% to the table. Many of these firms, which typically invest in mortgages and mortgage-backed securities, have focused on leveraging opportunities in distressed assets as a result of the housing crisis. [Read the full article]
In this country we cherish aseball, football, family and apple pie. But a good cup of coffee is also probably somewhere near the top of most lists as well. That may be why chains such as Starbucks (Nadsaq:SBUX) and Dunkin’ Donuts have achieved the success they have. Let’s look at Starbucks on the heels of news that it’s recent dividend announcement. (For a look at other companies paying dividends, take a look at Big Dividends in Utilities.)
Starbucks Pops Open Its WalletThe Seattle-based company has seen its stock rebound sharply from the low double digits a year ago. Although some wrote the company off a while back, it has found a way to hang tough in a difficult operating environment by offering the customer deals and through the introduction of new products like its increasingly popular instant coffee, Via. Most recently the company made headlines for doing something it hasn’t done before – approving a dividend. [Read the full article]
Accenture (ACN) shares were rising early Friday despite trimmed guidance that shook investors briefly. Accenture missed per share profit expectations by a penny on revenue that was in line with expectations; profit and revenue declined 3% and 2%, respectively, year over year. The business consulting firm lowered its full year profit guidance, due to currency, and pointed to the lower end of previous revenue guidance as well. But Wall Street observers noted that some fundamentals are improving. While there were various puts and takes, the bookings trends and other key metrics were largely positive reflecting both improving economic fundamentals and easing comparisons,wrote Thomas Weisel Partners analyst David Grossman, who has a market weight rating. [Read the full article]