Vector Group Ltd (VGR), Altria Group Inc (MO): The 25 Highest-Yielding Dividend Stocks in June

Page 1 of 2

High-yield dividend stock investing is popular again. Investors have taken to heart Jeremy Siegel’s studies, which show that higher-yielding stocks tend to offer greater returns over time than low- or no-yield stocks.

The highest dividend yields can be very tantalizing. As long as a stock yielding 15% doesn’t lose value, you’ll make 15% in one year! In more cases than not, however, an astronomical yield is a bad sign for a stock. Since dividend yields and stock prices move in opposite directions, a high yield usually means that investors have begun to worry about the business and driven down its stock price.

However, certain types of companies such as REITs have to pay out most of their income as dividends, so their yields will be higher than “normal.” Dividends are not guaranteed; you need to make sure that a business is generating enough cash to pay its dividend, or your investment could be disastrous.

I ran a screen for the highest-yielding stocks; the only limitations I’ve set this time is that the dividend stocks must have a market cap greater than $400 million, must be primarily listed in the U.S. (no ADRs), and must be a corporation (no REITs or MLPs).

Here are the top 25 highest-yielding stocks the screen produced:

Company Market Cap (millions) Dividend Yield (%)
1 Arlington Asset Investment $449 12.90%
2 Windstream $4,695 12.60%
3 Vector Group (NYSE:VGR) $1,453 9.90%
4 Frontier Communications $4,041 9.88%
5 Ship Finance International $1,434 9.27%
6 Consolidated Communications $673 9.24%
7 BGC Partners $928 8.70%
8 Compass Diversified $800 8.70%
9 R.R. Donnelley & Sons $2,271 8.31%
10 W&T Offshore $1,094 7.91%
11 New York Community Bancorp $5,714 7.72%
12 Nordic American Tankers $550 7.68%
13 PDL BioPharma $1,095 7.67%
14 First Financial Bancorp $870 7.31%
15 Valley National Bancorp $1,811 7.15%
16 Daktronics $438 7.15%
17 Capitol Federal Financial $1,756 6.96%
18 Costamare $1,261 6.41%
19 TAL International Group $1,378 6.39%
20 Cohen & Steers $1,612 6.31%
21 CenturyLink $21,274 6.18%
22 OneBeacon Insurance Group $1,344 5.96%
23 United Online $628 5.89%
24 Intersil $1,042 5.86%
25 FirstEnergy $16,177 5.69%

Source: S&P Capital IQ. Data as of June 10.

These stocks are a good place to start your research, but they’re not formal recommendations.

Last month I examined Arlington Asset Investment, and Windstream the month before that, so this month let’s take a look at No. 3:

Altria Group IncVector Group Ltd (NYSE:VGR) is the third-highest-yielding dividend stock in June with a trailing yield of 9.9%. The company has two main businesse: tobacco and real estate. The company manufactures and sells cigarettes through its Liggett Group and Vector Tobacco subsidiaries under the Pyramid, Grand Prix, Liggett Select, and Eve brands. The company is the fourth-largest cigarette manufacturer in the U.S. behind giants Altria Group Inc (NYSE:MO), Lorillard Inc. (NYSE:LO), and Reynolds American, Inc. (NYSE:RAI). There are some advantages to being small. Vector Group Ltd (NYSE:VGR) has a cost advantage stemming from the settlement between Vector Group Ltd (NYSE:VGR) and the U.S.: The company does not have to make annual payments unless its market share exceeds 1.65% of the U.S. market. As such, the company positions its brands as discount cigarettes to capitalize on its advantage.

The company also invests in real estate through its New Valley subsidiary. New Valley owns a 50% stake in the largest residential real estate broker in the New York metropolitan area and stakes in various real estate properties across the country. It should be noted that Vector Group Ltd (NYSE:VGR)’s ownership in New Valley is accounted for under the equity method of accounting, so its results do not flow through into Vector Group Ltd (NYSE:VGR)’s financial statements.

Page 1 of 2
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. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Burger Kings: The 10 Most Expensive Burgers in the World

The 10 Most Ethnically Diverse Countries in the World

The 10 Most Exclusive Credit Cards in the World

The 10 Most Expensive Cruise Ships in the World

The 10 Fastest Supercomputers in the World

The 10 Best Countries for Doing Business 2015

6 Most Expensive Fruits In The World

10 Worst Airlines in the World

The 10 Biggest Tax Havens in the World to Stash Your Money

The 15 Most Murderous Countries in the World

10 Largest Colleges in the World: Bigger Isn’t Always Better

Comedians in Cars Getting Coffee: The 6 Comedians Seinfeld Needs to Interview

Easy Money: The 10 Most Successful Investors in the World Today

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!