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Top 5 High Yield Stocks

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Page 1: Top 5 High Yield Stocks

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1THE TOP 5 HIGH-YIELD DIVIDENDS

TO END THEM ALL

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2THE TOP 5 HIGH-YIELD DIVIDENDS

TO END THEM ALL

 You see, these ve heavy-hitting, high-yield dividends are virtually bulletproof. Or, to be more

precise, they’re “recession proof.”

That means these stocks – unlike other high-yield, high-risk dividends – can stand the test of

hard nancial times.

Sound too good to be true? Think again...

These ve explosive dividends are considerably above the S&P average yields, but they’re also

less volatile and nearly reliable enough to set your watch by.

So without further ado, here are the top ve high-yield dividends to end them all...

For a while, thesefive high-yielddividends were mybest-kept secret...but now we just can’t

keep quiet any longer.

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3THE TOP 5 HIGH-YIELD DIVIDENDS

TO END THEM ALL

High-Yield Pick #1: Altria Group (MO)

Yield: 4.9% • Payout Ratio: 80%

 Whatever your moral standing is on the subject, there’s no denying the dependable

protability of “vice” stocks.

Enter Altria Group, the nation’s leading tobacco company. It’s always shown solid

stock performance (gaining over 400% in the last decade) and consistent earnings

per share growth (25% in the last year).

 Although the company appears to have a high level of debt, its sheer revenue and

overall market strength are enough to outweigh this risk.

 Again, among the few “recession-proof” industries, tobacco has a history of

impressive standings seemingly immune to the uctuations of the S&P. Even in

the face of rising taxes, public health concerns and general stigmatization, Altriacontinues to make gains.

High-Yield Pick #2: Consolidated Edison (ED)

Yield: 4.4% • Payout Ratio: 68%

Founded in 1884, Consolidated Edison is one of the oldest utilities. It provides

steam, natural gas and electricity to one of the most densely populated markets in

the country – the Northeast.

The result? There’s virtually no risk that the company is going out of business.

Shares aren’t a screaming bargain at a forward P/E ratio of 12.5. But such a

 valuation is hardly considered expensive.

 What’s compelling about Consolidated Edison is its dividend yield, which is nearly

double the 2.4% dividend yield of the S&P 500 Index.

Rest assured, the dividend is safe, as the company’s dividend payout ratio is

nice and conservative – giving them a cushion against any slow economic times.

 And payments are all but guaranteed to increase, too. For 39 years in a row (and

counting), management has increased the dividend.

 What’s compelling

about Consolidated

Edison is its

dividend yield,

which is nearly

double the 2.4%

dividend yield of the

S&P 500 Index.

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4THE TOP 5 HIGH-YIELD DIVIDENDS

TO END THEM ALL

High-Yield Pick #3: Avista Corporation (AVA)

Yield: 4.1% • Payout Ratio: 66%

 Avista, like Consolidated Edison, is a solid utility play, is recession-proof and has deep roots.

It’s been around for over a century. And its history of dividend payments, largely consecutive, goes back to the 1950s.

Translation? Avista isn’t going anywhere, and neither are its dividends.

It currently sports an annualized dividend of $1.27, representing a yield of 4.1%. And again, like Consolidated Edison,

that’s practically twice the S&P 500 average.

Better still, it has a ve-year average growth rate of 12.07%, which means the yield on cost will beat the pants off of most

stocks well into the future.

High-Yield Pick #4: Corrections Corporation of America (CXW)

Yield: 5.9% • Payout Ratio: 72.7%

The incarceration rate in the United States is through the roof, with over two million inmates and rising. As a result, state

and federal prisons, already strapped for cash, are at or past capacity.

Considering that 90% of the jails in the country are government owned, the niche that privatized prisons occupy is narrow yet protable. Corrections Corporation of America is one of the few and the largest of the private prison contractors in the

United States, operating 67 facilities in 20 states.

 Whatever your stance is on the issue of for-prot prisons, you’d have a hard time arguing the solid numbers behind CCA’s

 business prole, with the stock itself outperforming, clocking in with a gain of 414% over the last decade.

 With prison deterioration and overcrowding becoming increasingly problematic, CCA offers a viable alternative to the

nancially burdened state and federal institutions. And for investors seeking higher dividend yields, the recent conversion

of CCA to REIT status makes it an even more attractive deal.

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5THE TOP 5 HIGH-YIELD DIVIDENDS

TO END THEM ALL

High-Yield Pick #5: Kinder Morgan Energy Partners (KMP)

Yield: 6.9% • Payout Ratio: 92%

Buying stock in the energy sector is usually a decent move, but even safer than putting your money behind companies

that rene, produce, or provide is betting on the people who transport and store.

These transportation companies have no need to invest capital in research or exploration and, in relative terms, tend to

 be more isolated from resource shortages or gluts.

For example, as natural gas becomes more widely accepted, Kinder Morgan, the dominant player in oil and gas

transportation and storage, should prove to be an excellent investment opportunity.

Kinder Morgan owns the largest natural gas pipeline and storage facility in the country, and while most energy

providers could take a hit from the high supply of natural gas, at least until demand can catch up, Kinder Morgan will

only stand to make more money.

Since the company doesn’t own the commodities it handles, Kinder Morgan isn’t as exposed to market volatility as thecompanies it serves and, consequently, stock in its business remains fairly stable.

Max Yields in a Zero-Interest World

So there you have it... Five high yielders set to outperform, well, indenitely.

Best of all, this year is set to be the biggest year for dividends yet, with companies everywhere giving investors more of

 what they want – cash.

But with more and more companies jumping on the dividend bandwagon, the world of income investing is starting toget crowded – and might even seem confusing.

It doesn’t have to be.

Remember: It’s actually simple to nd high-yield dividend stocks in this zero-yield

 world. Ones that are reliable and virtually immune to dividend cuts or suspensions.

Ahead of the tape,

J.W. Langford

Senior Analyst , Wall Street Daily 

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6THE TOP 5 HIGH-YIELD DIVIDENDS

TO END THEM ALL

Nothing published by Wall Street Daily should be considered personalized investment advice. Although our employees may answer your genera

customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by

our employees to you should be deemed as personalized investment advice. We expressly orbid our writers rom having a financial interest in

any security recommended to our readers. All o our employees and agents must wait 24 hours afer on-line publication, or 72 hours afer the

mailing o printed-only publication prior to ollowing an initial recommendation. Any investments recommended by Wall Street Daily should

be made only afer consulting with your investment advisor and only afer reviewing the prospectus or financial statements o the company.

© 2014 Wall Street Daily, LLC. All rights reserved.

105 West Monument Street, Baltimore, MD 21201 // T. 855.405.3939 or 443.353.4052

 In a world of liars, theTRUTH

  starts here.

Nothing published by Wall Street Daily should be considered personalized investment advice. Although our employees may answer your genera

customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by

our employees to you should be deemed as personalized investment advice. We expressly orbid our writers rom having a financial interest in

any security recommended to our readers. All o our employees and agents must wait 24 hours afer on-line publication, or 72 hours afer the

mailing o printed-only publication prior to ollowing an initial recommendation. Any investments recommended by Wall Street Daily should

be made only afer consulting with your investment advisor and only afer reviewing the prospectus or financial statements o the company.

© 2014 Wall Street Daily, LLC. All rights reserved.

105 West Monument Street, Baltimore, MD 21201 // T. 877.242.1730 or 410.230.1266 F. 410.223.2650