The Surprisingly Safe 11.6% Dividend Yield Worth a Serious Look
In most cases, a double-digit payout by a stock suggests that something has gone wrong with the business. But once in a while, you find a great and safe dividend yield hiding amongst all of the thousands of publicly listed companies.
Case in point today is a broadband and business communications provider we’ve discovered with 36,000 fiber network miles—making it one of the top 10 fiber providers in the United States.
Laying fiber optic cable is not an easy feat. It requires a lot of capital and obtaining permits from regulatory authorities. So it's not every day that you see a new company getting into this business.
Last year, this company generated $137 million in free cash available to pay dividends. Given its actual dividends paid out were $94 million, the company had a payout ratio of 68.7%-- leaving a sizable margin of safety for its shareholder.
And most importantly, the company has a solid dividend-paying track record with over 50 consecutive quarterly dividend payments paid by this company!
You can learn all about our this 11.6% yielding company in a special hot-off-the-press investor research report we’ve prepared called The Surprisingly Safe 11.6% Dividend Yield Worth a Serious Look. It’s yours FREE when you opt-in for our FREE income e-letter, Income Investors.
Despite recent small increases in interest rates, savers and retirees have been punished for years. It’s been very difficult for “safe income” seekers to get high rates of returns on secure investments. That’s why thousands of investors turn to Income Investors every single day. Our motto is helping our readers get higher returns from safe and rising income plays.
What Is Income Investors?
Income Investors is dedicated to delivering timely, trusted and actionable financial news and information for dividend investors. Our mission is to help readers earn higher investment yields and better returns from their portfolios.
Our philosophy is straightforward:
We believe in simple.If you want to own hot tech stocks, Income Investors isn’t for you. But if you prefer commonsense investing, then you’ll like our approach just fine. Investors adore sexy startups and biotech plays. But over the long term, the best stocks tend to be simple businesses that produce reliable profits that they pay out to shareholders.
We believe in dividends. For ordinary investors, dividends may be the best way to build wealth. Sure, we all like the extra money. But in addition to regular income, study after study has shown dividend stocks actually beat the market over the long haul. After all, what could be a better sign of a solid business than writing a check to shareholders?
We believe in the future. Over the past century, American incomes have grown sevenfold. Think about everything that has happened during that time: the Great Depression…two world wars…asset bubbles…stock market crashes…and the list goes on. Yet through it all, our standard of living has marched higher. For 240 years, it has been a mistake to be betting against America. Now is not the time to start.
Robert Baillieul is Editor-in-Chief of Income Investors. He oversees a talented team of financial editors and analysts. Together, they scour the market to find the best income ideas for readers.
Robert is an advocate for a group of companies he calls his “Forever Assets.” Put simply, this is a group of stocks you can buy today and own for the rest of your life. These businesses have created wealth not just over weeks or years, but for generations.
When you own names like these, you no longer have to worry about inflation or bear markets. Many of these firms have paid dividends to shareholders for over a century. For this reason, some of the world’s wealthiest investors—including Bill Gates, George Soros, and Warren Buffett—hold these stocks in their portfolios.
Robert holds a Bachelor of Commerce from Saint Mary’s University. Prior to joining Income Investors, he worked as a risk analyst at TD Securities. Robert’s common-sense investment commentary has been featured in a number of publications, including Slate, MarketWatch, and The National Post.
Jing Pan is a research analyst and editor at Income Investors. His interests are in the fields of macroeconomics, technology, and currency. His major projects have included analyzing the relationship between the interpersonal trust index and economic performance, algorithmic trading in the foreign exchange markets, and the long-term impact of welfare programs.
Jing holds a Master’s Degree in Economics and a Bachelor of Science Degree, both from the University of Toronto.
Jing was co-founder of E-Learning’s Online Tutoring Service in Beijing, China; a project analyst at BMO Capital Markets; and a graduate research assistant at the University of Toronto.
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Our Editorial Policy: Our writers are forbidden to own any stock they write about. All our editors execute a document to this effect. Dear Reader: There is no magic formula to getting rich. Success in investment vehicles with the best prospects for price appreciation can only be achieved through proper and rigorous research and analysis. The opinions in our e-newsletter are just that, opinions of the authors. We are 100% independent in that we are not affiliated with any bank or brokerage house. Information contained herein, while believed to be correct, is not guaranteed as accurate. Warning: Investing often involves high risks and you can lose a lot of money. Please do not invest with money you cannot afford to lose. Nothing herein should be considered personalized investment advice. Before you make any investment, check with your investment professional (advisor). We urge our readers to review the financial statements and prospectus of any company they are interested in. We are not responsible for any damages or losses arising from the use of any information herein. We are a publishing company offering opinion and commentary of our editors and analysts. Past performance is not a guarantee of future results. All trademarks and registered trademarks are the property of their respective owners. *While these are real examples, names have been changed to protect the privacy of the individuals.