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December 2, 2014

Jonathan Tobin: Defending the Right to a Jewish State

Heather Hale: Compliment your kids without giving them big heads

Megan Shauri: 10 ways you are ruining your own happiness

Carolyn Bigda: 8 Best Dividend Stocks for 2015

Kiplinger's Personal Finance editors: 7 Things You Didn't Know About Paying Off Student Loans

Samantha Olson: The Crucial Mistake 55% Of Parents Are Making At Their Baby's Bedtime

Densie Well, Ph.D., R.D. Open your eyes to yellow vegetables

The Kosher Gourmet by Megan Gordon With its colorful cache of purples and oranges and reds, COLLARD GREEN SLAW is a marvelous mood booster --- not to mention just downright delish
April 18, 2014

Rabbi Yonason Goldson: Clarifying one of the greatest philosophical conundrums in theology

Caroline B. Glick: The disappearance of US will

Megan Wallgren: 10 things I've learned from my teenagers

Lizette Borreli: Green Tea Boosts Brain Power, May Help Treat Dementia

John Ericson: Trying hard to be 'positive' but never succeeding? Blame Your Brain

The Kosher Gourmet by Julie Rothman Almondy, flourless torta del re (Italian king's cake), has royal roots, is simple to make, . . . but devour it because it's simply delicious

April 14, 2014

Rabbi Dr Naftali Brawer: Passover frees us from the tyranny of time

Greg Crosby: Passing Over Religion

Eric Schulzke: First degree: How America really recovered from a murder epidemic

Georgia Lee: When love is not enough: Teaching your kids about the realities of adult relationships

Cameron Huddleston: Freebies for Your Lawn and Garden

Gordon Pape: How you can tell if your financial adviser is setting you up for potential ruin

Dana Dovey: Up to 500,000 people die each year from hepatitis C-related liver disease. New Treatment Has Over 90% Success Rate

Justin Caba: Eating Watermelon Can Help Control High Blood Pressure

The Kosher Gourmet by Joshua E. London and Lou Marmon Don't dare pass over these Pesach picks for Manischewitz!

April 11, 2014

Rabbi Hillel Goldberg: Silence is much more than golden

Caroline B. Glick: Forgetting freedom at Passover

Susan Swann: How to value a child for who he is, not just what he does

Cameron Huddleston: 7 Financial Tasks You Should Tackle Right Now

Sandra Block and Lisa Gerstner: How to Profit From Your Passion

Susan Scutti: A Simple Blood Test Might Soon Diagnose Cancer

Chris Weller: Have A Slow Metabolism? Let Science Speed It Up For You

The Kosher Gourmet by Diane Rossen Worthington Whitefish Terrine: A French take on gefilte fish

April 9, 2014

Jonathan Tobin: Why Did Kerry Lie About Israeli Blame?

Samuel G. Freedman: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Jessica Ivins: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Kim Giles: Asking for help is not weakness

Kathy Kristof and Barbara Hoch Marcus: 7 Great Growth Israeli Stocks

Matthew Mientka: How Beans, Peas, And Chickpeas Cleanse Bad Cholesterol and Lowers Risk of Heart Disease

Sabrina Bachai: 5 At-Home Treatments For Headaches

The Kosher Gourmet by Daniel Neman Have yourself a matzo ball: The secrets bubby never told you and recipes she could have never imagined

April 8, 2014

Lori Nawyn: At Your Wit's End and Back: Finding Peace

Susan B. Garland and Rachel L. Sheedy: Strategies Married Couples Can Use to Boost Benefits

David Muhlbaum: Smart Tax Deductions Non-Itemizers Can Claim

Jill Weisenberger, M.S., R.D.N., C.D.E : Before You Lose Your Mental Edge

Dana Dovey: Coffee Drinkers Rejoice! Your Cup Of Joe Can Prevent Death From Liver Disease

Chris Weller: Electric 'Thinking Cap' Puts Your Brain Power Into High Gear

The Kosher Gourmet by Marlene Parrish A gift of hazelnuts keeps giving --- for a variety of nutty recipes: Entree, side, soup, dessert

April 4, 2014

Rabbi David Gutterman: The Word for Nothing Means Everything

Charles Krauthammer: Kerry's folly, Chapter 3

Amy Peterson: A life of love: How to build lasting relationships with your children

John Ericson: Older Women: Save Your Heart, Prevent Stroke Don't Drink Diet

John Ericson: Why 50 million Americans will still have spring allergies after taking meds

Cameron Huddleston: Best and Worst Buys of April 2014

Stacy Rapacon: Great Mutual Funds for Young Investors

Sarah Boesveld: Teacher keeps promise to mail thousands of former students letters written by their past selves

The Kosher Gourmet by Sharon Thompson Anyone can make a salad, you say. But can they make a great salad? (SECRETS, TESTED TECHNIQUES + 4 RECIPES, INCLUDING DRESSINGS)

April 2, 2014

Paul Greenberg: Death and joy in the spring

Dan Barry: Should South Carolina Jews be forced to maintain this chimney built by Germans serving the Nazis?

Mayra Bitsko: Save me! An alien took over my child's personality

Frank Clayton: Get happy: 20 scientifically proven happiness activities

Susan Scutti: It's Genetic! Obesity and the 'Carb Breakdown' Gene

Lecia Bushak: Why Hand Sanitizer May Actually Harm Your Health

Stacy Rapacon: Great Funds You Can Own for $500 or Less

Cameron Huddleston: 7 Ways to Save on Home Decor

The Kosher Gourmet by Steve Petusevsky Exploring ingredients as edible-stuffed containers (TWO RECIPES + TIPS & TECHINQUES)

Jewish World Review

Great Dividend Stocks for 2014

By Tom Petruno






JewishWorldReview.com | Flush with cash, corporate America has launched a new golden age of dividends, pumping record sums into investors' pockets. But even as shareholders reap that windfall, some wonder how sustainable it is. Memories of the rash of dividend cuts during the Great Recession still loom large.

The good news: Many blue-chip companies have ample room to continue raising dividends. The "payout ratio" (the percentage of annual earnings paid out in dividends) is expected to be about 34% for Standard & Poor's 500-stock index in 2014, says Howard Silverblatt, senior index analyst at S&P. That would be well below the historical average of 52%.

Of course, the main reason to buy a stock is for capital gains. But if share-price appreciation slows -- or even reverses course for a while -- after the bull market surge of the past five years, dividends will become more important. And don't forget that dividends enjoy a tax advantage: They are taxed at a maximum federal rate of 23.8%, compared with a top rate of 43.4% on ordinary income, such as bond interest.

Here's a look at seven dividend stocks worth considering. Some have strong current yields, some promise strong dividend-growth potential, and some offer both. Take your pick.

VERIZON COMMUNICATIONS

Share price: $47.31

Current yield: 4.5%

Annualized dividend rate: $2.12

Annualized five-year dividend-growth rate: 2.9%

Verizon Communications (VZ) has long been high-yield champ for investors who want current income, with yield well above the S&P 500's average of 2%.

Like its archrival AT&T (T), Verizon faces heavy expenses for network upgrades. As such, neither telecom giant has offered great dividend growth: Both have raised their payouts a modest 15% since 2008, compared with 29% for the S&P 500 overall.

Bottom Line: High and "safe" current yields, but there are doubts about dividend growth.

MCDONALD'S

Share price: $95.46

Current yield: 3.4%

Annualized dividend rate: $3.24

Annualized five-year dividend-growth rate: 10.1%:

The fast-food king has become a symbol of the doubts nagging many multinational consumer-stock giants. Companies such as McDonald's (MCD), Coca-Cola (KO), Wal-Mart Stores (WMT) and Procter & Gamble (PG) have been among the most dependable dividend stocks of the past 30 years. But all face intense competitive pressures.

McDonald's sales growth has slowed markedly over the past two years, and so have earnings. Profit per share in 2013 edged up just 3.5%, to $5.55. The pace of dividend increases also has slowed, from 15% in 2011 to 10% in 2012 and just 5% last year. The stock price has gone nowhere over the past two years.

The current dividend is almost certainly safe. But the stock's above-average yield of 3.4% indicates that investors are worried about the company's future growth. Perhaps more than ever, investors in McDonald's and other consumer giants need to focus not just on the current dividend but on where it's headed.

Bottom Line: High and "safe" current yields, but there are doubts about dividend growth.


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Philip Morris International

Share price: $79.24

Current yield: 4.7%

Annualized dividend rate: $3.76

Annualized five-year dividend-growth rate: 11.7%

Tobacco is controversial as an investment, of course. And that means the market demands more of tobacco companies, to the benefit of shareholders: For investors willing to set aside social concerns, Philip Morris International (PM) shares offer both a high current yield and hefty dividend-growth potential. The dividend has more than doubled since mid 2008, when the company was spun off from Altria Group(MO). Altria kept the domestic business, leaving Philip Morris the number-two marketer of cigarettes outside the U.S. (behind only state-owned China National Tobacco).

Philip Morris signaled last year that earnings would be weak in 2014, in part because of spending on new "reduced-risk" tobacco products, including e-cigarettes. That warning depressed the stock in 2013. But as Morningstar has noted, the New York City-based company remains a "cash-generating machine" and understands its shareholders' desire for rising dividends over the long term.

Bottom Line: Above-average current yields and strong dividend-growth prospects.

LOCKHEED MARTIN

Share price: $159.80

Current yield: 3.3%

Annualized dividend rate: $5.32

Annualized five-year dividend-growth rate: 18.5%

The defense business, like tobacco, is shunned by some investors. So Lockheed (LMT), the world's biggest defense contractor, has used its dividend to show its commitment to rewarding shareholders with hard cash, in addition to aggressively buying back shares (as many other companies have been doing). It has more than tripled its payout since 2008. The most recent hike was a 16% increase paid last December.

The company's fortunes remain tied to government spending in the U.S. and abroad, and in particular to fighter jets such as the F-35. But even though Lockheed's payout ratio has risen from 23% in 2008 to 50% today, that still leaves room for decent dividend growth if management maintains its policy of directing cash back to shareholders.

Bottom Line: Above-average current yields and strong dividend-growth prospects.

CVS CAREMARK

Share price: $69.48

Current yield: 1.6%

Annualized dividend rate: $1.10

Annualized five-year dividend-growth rate: 29.3%

The drugstore chain won't land on anyone's list of high-yielding stocks. Its appeal lies in its stunning dividend growth. CVS Caremark (CVS) has quadrupled its payout since 2008. That includes a 22% increase announced in December. The company is sending a clear message about its intent to reward shareholders, says Kelley Wright, managing editor of the dividend-focused Investment Quality Trends newsletter in La Jolla, Cal. "CVS just produces year in and year out," he says.

Besides running its drugstore chain, CVS became a leading manager of pharmacy benefits for health care providers when it bought Caremark in 2007. That is the "true driver" of the company's economic advantage over rivals, writes Morningstar. CVS is expected to earn $4.48 a share this year, or four times its dividend. That leaves plenty of leeway for further dividend hikes.

Bottom Line: Lower current yields but rapid dividend-growth potential.

RELIANCE STEEL & ALUMINUM

Share price: $72.86

Current yield: 1.8%

Annualized dividend rate: $1.32

Annualized five-year dividend-growth rate: 27.0%

Its name notwithstanding, Reliance Steel & Aluminum (RS) doesn't produce metals. Instead, it has built a business with $8.5 billion in annual sales by serving as a middleman, distributing steel and other metals to myriad manufacturers nationwide.

The company has grown phenomenally via acquisitions over the past decade to become the largest U.S. metals distributor. It expects to continue on that track, gaining more economies of scale. With the stock near record levels, the dividend yield is modest. But the pace of increase has been dramatic: a 230% jump since 2008.

To be sure, this is a cyclical business, and Reliance's earnings would suffer in a recession. But assuming the economy continues to expand, the company should earn about $5.85 a share this year, Wall Streetanalysts estimate. The current dividend payout is just 23% of that figure. Given its history, Reliance's commitment to dividend growth is a "no-brainer," says Wright, of Investment Quality Trends.

Bottom Line: Lower current yields but rapid dividend-growth potential.

BAXTER INTERNATIONAL

Share price: $69.26

Current yield: 2.8%

Annualized dividend rate: $1.96

Annualized five-year dividend-growth rate: 13.5%

Baxter International (BAX), a diversified health care firm with operations in biotech and medical devices, is a bet that an aging population will inevitably mean more spending on certain kinds of services. The company is a leading supplier of hospital IV solutions, for example, and a big name in at-home dialysis services overseas.

Baxter also has made a point of being generous with dividends, raising its payout 125% since 2008. The pace could slow in the near term as the company deals with tougher competition in some businesses, such as hemophilia treatments. But over the longer term, Baxter has room to continue boosting its payout, if it chooses: The current annualized dividend of $1.96 a share is just 38% of the $5.14 a share the company is expected to earn in 2014.

Bottom Line: Lower current yields but rapid dividend-growth potential.

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Tom Petruno is a Contributing Writer for Kiplinger's Personal Finance magazine.



All contents copyright 2013 The Kiplinger Washington Editors, Inc. Distributed by Tribune Content Agency, LLC

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