When the market starts turning ugly and investors become averse to risk that is the time to start picking up some quality income from dividend paying stocks. The 600 point decline that took place on yesterday has unearthed a bunch of great values for investors looking for some solid dividend stocks. Let’s take a look at a few names with fantastic yields.
5 Good Dividend Stocks
AT&T (T) has been and will continue to be a phenomenal dividend play having raised its dividend for 27 consecutive years. Now AT&T is a good value play as well. The stock trades at 12 times earnings and 1.5 times book value. That low price to book value ratio is right in Warren Buffett territory. The company’s shares are currently on the verge of yielding 6%.Any drop in the market tomorrow and dividend investors will pick up a solid stock with a great yield.
Leggett & Platt
You may be wondering who or what Leggett & Platt (LEG) is. Leggett & Platt is a manufacturing and engineering company that creates a number of home and office products. Shares of Leggett & Platt trade at 14 times this year’s earnings which is actually cheap considering the 16% growth rate for the current year. Leggett & Platt just increased its dividend last week and the company has grown its dividend for 40 consecutive years at a 14.5% compounded annual rate. The current dividend yield of 5.80% makes the company shares attractive.
Every dividend list needs at least one limited partnership on its list. Brookfield Infrastructure Partners L.P. (BIP). The company is one of the larger infrastructure and timber manufacturers in the marketplace. Brookfield Infrastructure has been a solid holding in my portfolio for a few years as the stock has given both price and dividend appreciation. Brookfield Infrastructure currently has a generous 5.5% yield.
When it comes to dividend payers Eli Lilly (LLY) is as safe as it comes. The company has been paying a dividend for 74 consecutive years. Eli Lilly recently broke its streak of 42 consecutive years of dividend increases. Even without a dividend increase, the company’s dividend is really attractive. The pharmaceutical company has seen its earnings growth decline over the past few quarters but still has enough free cash flow and cash on the balance sheet to sustain the dividend. The current yield is a robust 5.40%.
I admit that owning shares of Pfizer (PFE) is like owning a bond. The stock’s value never rises or falls too much and the reason that investors buy the stock is for the dividend. Pfizer was a dividend favorite for years until the company had its first dividend cut a few years ago. Since the company has regained its footing Pfizer has become a dividend play that investors can own. Shares trade at 7 times earnings which is not that cheap for a company with a growth rate in the 2’s. The 80 cent dividend however makes the stock attractive with its 4.60% yield.
Are there any additional companies that you would add to the list?