High Yielding Dividend Stocks

Investors that are in the market for some income should take a look at these dividend stocks. These companies have a history of increasing their dividend payouts and have yields that are making them look attractive to income investors. These stocks participate in a variety of industries and vary in size. The one common attribute is the fact that the dividends make the stocks worth investigating.

Holly Energy Partners L.P. (HEP) is one of the highest yielders in the market right now. Shares are currently 7% as the limited partnership has seen its share price retreat to below $50 a share. Holley Energy is heavily tied to the demand for crude oil and energy commodities. Holly benefits when demand for oil products are high as the company generates substantial cash flows. The company has incredibly high debt levels and its earnings will suffer in the face of higher interest rates. In this low interest rate environment Holly should thrive.

Waste Management (WM) may participate in a boring industry but the stock has become a good dividend play. Shares of Waste Management trade at $31 a share and the stock has a dividend of $1.36. The stock has a nice 4.2% dividend yield. Waste Management is working on eight consecutive years of dividend increases. The trash company is a low growth stock that generates ample amounts of free cash flow with the company earnings $1 billion dollars over the past 12 months.

Lockheed Martin (LMT) may be the largest defense contractor in the country but Raytheon (RTN) has the highest yield of any of the large cap defense contractors. Raytheon is cheap on a price to book, price to sales, and price to earnings ratio too. The contractor’s $1.72 payment has an effective yield of 4.1%. The company has bumped its dividend payment up for seven consecutive years. Raytheon’s shares have dropped like many defense contractors with investors concerned about government cutbacks in defense spending.

Medtronic (MDT) is an industry leader in disease management. Medtronic has doubled its dividend over the past five years. The 97 cent payout amounts to a 2.85% yield which is positioning the company to become a serious dividend contender. Medtronic has increased its dividend for 34 consecutive years which is a pretty impressive record for any company. The $3.2 billion in free cash flow generated last year makes a 35th consecutive dividend increase appear highly probable.

Photo by: MollyDG

Comments

  1. I like RTN a lot and LMT to a lesser degree. I think RTN will continue to stay strong due to their diversified product lineup. Strong yield and a pretty low valuation. I think it’s a strong pick and I’ve had my eye on it for about three months now. I think RTN has the stronger valuation in comparison to LMT.

  2. avatar 101 Centavos says:

    There’s money in trash. Waste Management continues to grind on, year after year.

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