Nervous? Seek Safety in These Stocks
Until the financial crisis, dividend paying stocks were seen as stocks for retirees and others simply looking to live off the income. Growth was king.
But the stock sell-off in 2008 changed a lot of investor's minds and suddenly a 3% or 4% yield wasn't looking too bad.
Once again, investors appear to be eying the dividend paying stocks as there has been some rotation into these companies in recent days as the stocks markets have moved lower. Suddenly, utility companies with a 4% yield aren't looking too shabby.
While there's no reason to panic over the recent pullback, there is nothing wrong with reducing the risk with more conservative stock plays. Many of those usually involve a dividend.
Seek Safety in These 3 Stocks
If the volatility continues, these 3 companies will be paying you a nice dividend of over 3% to ride out the storm.
They're not glamour companies but when uncertainty comes knocking, sometimes it's good to know the check is in the mail.
NV Energy (NYSE: NVE) is a Nevada-based energy utility. The company operates Nevada Power Company and Sierra Pacific Power Company and serves about 2.4 million citizens and all the tourists visiting the bright lights of Las Vegas.
This Zacks #2 Rank (buy) recently surprised on the Zacks Consensus Estimate by 100%, posting fourth quarter earnings of 6 cents compared to the consensus of 3 cents. Analysts have been raising estimates in just the last week for 2011, pushing up the Zacks Consensus by a penny to 97 cents. Shareholders are rewarded with a dividend yielding 3.2%.
Telus Corporation (NYSE: TU) is a Canadian telecommunications provider of wireless, wireline and Internet services. Wireless is hot! Growth in the wireless sector drove sales in the fourth quarter as wireless revenue jumped 9% and wireline data revenue climbed 7%.
Since Feb 11, when Telus beat the Q4 Zacks Consensus Estimate by 7%, analysts have been raising estimates for 2011, with the consensus rising 2 cents to $3.76 per share in just the last week. That is earnings growth of 14.8%. Telus has both growth and value, with a PEG of 0.9. This Zacks #2 Rank (buy) also pays a juicy dividend yielding 4.5%.
Lorillard, Inc. (NYSE: LO) is the winner in the dividends sweepstakes amongst these 3. Currently, the company's dividend is yielding 6.6% but it also recently announced it was raising it another 16% to $1.30 per share. This was the second dividend increase in the last 6 months.
This Zacks #2 Rank (buy) is the third largest maker of cigarettes in the US. It makes the famous Newport brand, among others. The cigarette makers have long been known to pay out large dividends to compensate for lack of growth but Lorillard is expected to grow its earnings by 10% in both 2011 and 2012.
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Len Zacks. The company continually processes stock reports issued by 3,000 analysts from 150 brokerage firms. It monitors more than 200,000 earnings estimates, looking for changes.
Then when changes are discovered, they're applied to help assign more than 4,400 stocks into five Zacks Rank categories: #1 Strong Buy, #2 Buy, #3 Hold, #4 Sell, and #5 Strong Sell. This proprietary stock picking system; the Zacks Rank, continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter Profit from the Pros. In short, it's your steady flow of profitable ideas GUARANTEED to be worth your time. Get your free subscription to Profit from the Pros at: http://at.zacks.com/?id=7298
Follow us on Twitter: http://twitter.com/ZacksResearch
Join us on Facebook: http://www.facebook.com/ZacksInvestmentResearch
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
SOURCE Zacks Investment Research, Inc.