6 Dividend Stocks – $SBGI, $TSU, $NYX, $UVV, $AYR, $STX

When you buy a dividend stock, you have two ways to earn money – from the stock’s performance and from the dividends the stock yields. There is a catch though – you have to decide how you want to receive your dividends when you purchase the stock. Keep in mind that which ever method you use is taxable. If you receive your dividends as income, you can pay the taxes on that sum from the dividends themselves, but if you reinvest your dividends, you will have to pay taxes on the dividends you receive when they are disbursed, which could be a hefty amount out of pocket.

RENAISSANCE TECHNOLOGIES

DIVIDENDS AS INCOME

The dividend amount will vary dramatically between companies but, in any case, if you invest enough, you could use your dividends to replace or supplement your income. Now, with this strategy comes certain risks – after all, the company could stop providing dividends at any time, or change the dividend amount.

DIVIDENDS AS RETURN

On the other hand, you could choose to reinvest the dividends. Reinvesting takes advantage of compounding interest to net you even greater returns. It also acts as type of hedging – if the stock performs poorly, the reinvested dividends can offset loss. Between the benefits of reinvesting (it’s like “free money”) and the hedging ability of reinvesting dividends, if you can afford to pay the tax bill, reinvesting can be extremely profitable, especially if the dividend yielding stock is a strong and consistent performer.

CHOOSING THE RIGHT DIVIDEND STOCKS

Choosing the right dividend stock is important. Whether you want to use the dividends as income or reinvest them, finding a stock that will consistently perform well while offering consistent dividends is critical to managing your investment portfolio – whatever your purpose. For example, a stock like the Coca-Cola Company has been consistently providing dividends, and consistently increasing them, for the last few decades.

To give you an idea what to look for, we compiled a list of stocks with dividend yields over 4% of their respective stock prices. Then, we narrowed the list to look only at those stocks that pay out less than 50% of their profits as dividends (“payout ratio”). This was done to help control the quality of the list. Next, we looked at the number of stocks that had the highest number of institutional purchases in the current quarter.

Here is a list of the stocks we came up with. You can use as a starting point for your own analysis:

  • Sinclair Broadcast Group (SBGI) is a company that provides programming, operating and sales services to television stations in the US had a dividend yield of 5.17% and a payout ratio of 46.76%. It also has 2.1M in institutional purchases, which is over 4% of the company’s 50.81M float. Amongst the 300+ hedge funds we track, 14 have positions in SBGI, including Jim Simons’ Renaissance Technologies.
  • TIM Participacoes (TSU) is a Brazilian mobile telecom company. It has a dividend yield of 5.12% and a payout ratio of 17.96%. TSU also has 13.3M in institutional purchases, which is almost 12% of the company’s 112.2M float. Amongst the 300+ hedge funds we track, 15 have positions in TSU, including Lee Hobson’s Highside Capital Management.
  • NYSE Euronext (NYX) a securities exchange company. It has a dividend yield of 4.48% and a 33.93% payout ratio. NYX also has 14.0M in institutional purchases, which is over 5% of the company’s 261.37M float. Amongst the 300+ hedge funds we track, 27 have positions in NYX, including John Paulson’s Paulson & Co.
  • Universal (UVV) is a tobacco leaf processor and merchant. It has a dividend yield of 4.48% and a payout ratio of 33.93%. UVV also has 1.5M in institutional purchases, which is almost 7% of the company’s 22.82M float. Amongst the 300+ hedge funds we track, 11 have positions in UVV, including David Dreman’s Dreman Value Management.
  • Aircastle Ltd (AYR) buys, leases and sells jets to passenger and cargo airlines worldwide. It has a 4.31% dividend yield and a payout ratio of 35.40%. AYR also has 2.0M in institutional purchases, which is over 3.5% of the company’s 56.02M float. Amongst the 300+ hedge funds we track, 14 have positions in AYR, including Michael Novogratz’s Fortress Investment Group.
  • Seagate Technology (STX) is a hard disk drive manufacturer. It has a dividend yield of 4.20% and a payout ratio of 30.28%. STX also has 26.7M in institutional purchases, which is almost 7% of the company’s 391.47M float. Amongst the 300+ hedge funds we track, 30 have positions in STX, including David Einhorn’s Greenlight Capital.
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!