A high-yield investment provides investors with more safety and security versus those that do not. However, certain companies are more giving than others, and in this article I am looking at five companies that just issued large increases in their yield.
|Company||Ticker||Dividend Increase||Forward Yield*|
|Corrections Corp America||(NYSE:CXW)||165%||5.73%|
|Parkway Properties||(NYSE: PKY)||33%||3.39%|
|Infinity Property and Casualty||(NASDAQ:IPCC)||33%||2.06%|
*2013 dividend yield based on current price
Sin Stocks Pay Dividends
It’s always good to have a sin stock in your portfolio, whether it is tobacco, alcohol, or perhaps those in corrections. These are secular investments that will grow or remain steady regardless of the economy. Sin stocks in particular have to fight politicians, regulatory challenges, etc. to remain operational. There aren’t too many industries in the market that could survive the backlash of the tobacco or alcohol industry, or that of corrections. Corrections Corp. of America falls under this category, as an owner and operator of privatized correctional facilities, and the company just announced an unprecedented dividend boost.
The company just recently implemented its dividend, and has since rallied almost 60% in the last year. This is a company that has grown each of the last five years, is profitable, and operates with a debt-to-assets ratio that is consistent with the rest of its industry. The company is fairly valued, and might make a good long-term addition to your portfolio due to its consistency and high payout.
Dull & Boring is Good….. When it Pays Dividends
Texas Instruments rallied almost 5% after announcing earnings that barely beat expectations. However, the stock’s rise was not related to earnings, but rather an unprecedented 33% rise in its dividend. The company has now declared a $0.28 quarterly payout, which is a 180% premium over the last five years.
TXN is in some ways a secular technology company, a stock that has traded somewhat flat over the last five years. The company has what many would call “old technology,” yet the company has managed to stay fundamentally consistent and is now a great investment for those seeking consistent returns. The company also returns an excess of capital to its shareholders and by returning such high levels of capital, Texas Instruments is a far better investment than any bond you can find.
Making a Post-Recession Comeback with A High Yield
Parkway Properties is a real estate investment trust with office properties in higher growth submarkets in the Sunbelt region of the United States. It is a small $1 billion company that knows how to take care of its investors with large returns of capital. Since Q2 of 2010 the company has more than doubled its dividend; this coming after a near collapse during the housing crisis.
In a market where investors are trying diligently to snatch up real estate holdings, Parkway Properties remains somewhat under-the-radar. The company itself is cyclical and needs a strong housing market in order to succeed. However, with a forward P/E ratio of under 13.0 and a housing market on the rise, this could be a great high yield investment for many years to come.