High-Dividend Stocks for the Gurus

In his latest column for MSN Money’s Top Stocks, Validea CEO John Reese highlights a handful of high-dividend stocks he thinks are worth a look right now.  “In the months leading up to the fiscal deal, high-dividend stocks have been taking some hits,” Reese writes. “While fiscal cliff and higher taxes on dividends may not be the only reason, no doubt these concerns were playing some role in dividend stocks’ sluggishness.” But, he says, the declines “have shaken some of the excess bullish sentiment out of high dividend plays, which had gotten fairly pricey earlier this year as investors, starved […]

Top Dividend Manager Talks Strategy

T. Rowe Price’s Tom Huber, whose Dividend Growth fund is in the top 13% of funds in its category over the past five years, according to Morningstar, says that tax increases associated with the fiscal cliff aren’t reason to avoid dividend-paying stocks. “There is a lot of discussion and worry [about the tax hikes] more than I think it deserves,” Huber tells Barrons.com. “Higher tax rates are not good. But I think [these stocks] have been shown to work over time.” While consumer staples, utilities, financials, and telecom have traditionally been areas to find strong dividend plays, Huber says that’s changing, […]

Don’t Ignore The Dividends

The Wall Street Journal’s Matt Phillips has a simple message for investors: Do not forget about dividends. “Dividends matter! Dividends matter! Dividends matter!” Phillips writes on the Journal’s “MarketBeat” blog. He references recent commentary from Standard & Poor’s Howard Silverblatt as proof. “We are near another all time high for total return, even as stocks remain 10.2% off their all time high,” Silverblatt said. “We need a 0.14% total return to set a new record, which includes today’s dividends adding .02%.” Silverblatt says the indicated dividend rate is “up 13.0% from 12/30/2011, 2012 payment estimated to be an all time […]

Stocks Offering Nice Dividends — And Value

With bonds yielding so little, many investors have been looking for yield in the form of high-dividend stocks — which has made some of those picks rise to unattractive valuations. But in his latest article for Forbes.com, Validea CEO John Reese looks at some stocks that are offering nice dividends, and still trading at cheap valuations. Reese refers to data that top fund manager Bill Nygren cited in a recent letter to shareholders. “Nygren points out that, historically, the top 100 dividend payers in the S&P [500] have collectively sold at a price/earnings ratio that is about three-quarters of the […]

Dividend Data Points to Market Being Undervalued

MarketWatch’s Mark Hulbert says that the stock market is “closer to undervalued” than overvalued, and that the market is “poised to produce above-average returns over the next couple of years.” Using data from Investment Quality Trends, Hulbert looked at stocks of some of the “highest quality and most profitable companies, as defined by criteria such as an S&P quality ranking in the ‘A’ category, 25 years of uninterrupted dividends, and at least five dividend increases over the last dozen years.” Right now, only about 250 stocks make that list, he says. IQT puts each of these stocks into one of […]