Top 100 Dividend Stocks – March 2012

avatar By: IS
Date posted: 03.01.2012 (5:00 am) | Write a Comment  (6 Comments)

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Well well well… while we do not have a new #1, FTR has certainly suffered a big drop in its dividend yield as it continues to look at diminishing profits and a soon to be diminished dividend. Again, if you are investing based off of dividend yield alone, you are making some serious mistakes.

I wrote about why dividend investing is not just a trend and I think that finding the right stocks to include is a critical part.

Today, we are back with our list of the top 100 dividend stocks from the S&P500 and there is no surprise in who is on top. I would caution greatly against investing based only off of a dividend yield though.

Frontier Communications Corp (FTR)

No big surprise again this month as Frontier Communications Corp (FTR) remains at the very top of our top dividend stocks in the S&P500 with a dividend yield of a little under 9%, which is about half of what it was one month ago.  The company continues to pay out much more than it can actually afford to pay out.

The dark side of course remains that the company is paying out much more than it is actually able to make, making that dividend everything but sustainable. Every month, I do more in-depth research to find dividend names and FTR has never come out on top of that research..!!

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FTR’s Dividend Payout History

FTR’s days at the top of this chart are nearing its end in my opinion. Not only is FTR going to likely announce a dividend cut later this month but if things keep up, it will not be able to remain in the S&P500… should be interesting! Next week, we will do further research on the 100 stocks listed here to determine which ones are more likely to do well in the long term both based on sustainability and the 20 things that we look for in dividend stocks.

In the meantime, here is the list!

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6 Comments »

  1. Pingback by Links Worth Reading — March 2, 2012 @ 6:02 am
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    [...] 1. Top 100 Dividend Stocks – March 2012 @ IS. [...]

  2. Comment by Ed — March 11, 2012 @ 2:36 pm
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    So, I am assuming that the payout ratio is related to the amount that is being paid in dividends vs what the company actually brings in as revenue.
    If that is the case, how does any company survive with paying over a 100 ratio? I see a few good dividend payers that are over 100 like T, VZ, CINF, CLX. How do they do it?

  3. Comment by IS — March 12, 2012 @ 3:57 am
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    @Ed- They can do it for some time but it is unsustainable..they must either increase earnings or diminish dividend payments at some point

  4. Comment by Hans — April 15, 2012 @ 10:47 am
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    IS, have you looked at TEF, the Spanish phone company now yielding 14%?

    Moreover, it is trading near it’s 52 week low as well…

    I will have to conduct a DD study soon…Even if the semi $1.05 is reduced by half, it would still provide a delightful 7% yield…

  5. Comment by IS — April 15, 2012 @ 6:58 pm
  6. Comment by Hans — April 16, 2012 @ 2:45 pm
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    IS, thanks for the link…After reading the debt/equity ratio, I made several trips to the toilet… Yes, that is 56 billion Euro’s worth…

    If I were management, I would eliminate the dividend entirely and slowly rebuild it…

    Perhaps what is happening to the Spanish economy (long live Franco) the dividend yield should be more on the order of 18%…

    http://seekingalpha.com/article/466571-telefonica-s-dividend-cut-is-already-priced-in-by-the-market

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