Top 100 Dividend Stocks – June 2012 – A New Stock Is On Top..! Too Good To Be True?

By: ispeculatornew
Date posted: 06.01.2012 (5:00 am) | Write a Comment  (4 Comments)

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I’ve written a few times about how looking at dividend yield could be misleading. One part of the reason is that some companies end up paying more than they can afford to. FTR was one obvious example and while it remains a high dividend yield pick, it lost its top ranking.

I also 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 have an interesting analysis as the top pick actually has a very low payout ratio.. !

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.

Pitney Bowes Inc (PBI)

With a dividend yield over 10% and a payout ratio of under 25%, it sure looks like a steal doesn’t it? I am certainly floored and it looks too good to be true. PBI has been near the top for a few months now and have reached the top today. A worrying trend though is that they reached this in good part because the stock price has been tanking.  That certainly makes me wonder a bit more.

Over the weekend, I will do a full analysis of PBI and will send it over to newsletter subscribers next week, be free to join if you haven’t already, it’s free!:)

In the meantime, here is the list!

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4 Comments

  1. Comment by Richard — June 6, 2012 @ 12:23 am

    I JUST REVIEWED THE I.S. REVIEW OF PBI. I HAVE RESEARCHED PBI AND HAVE A LARGE LONG POSITION IN PBI. YES THEY ARE IN A DECLINING SEGMENT OF OUR ECONOMY … SNAIL MAIL, HOWEVER, WHAT MANY INVESTORS DO NOT REALIZE IS THAT PBI’S MANAGEMENT HAS REALIZED THE EVER INCREASING UTILIZATION OF DIGITAL MAIL .. EMAIL BACK IN 2008!! THEY HAVE NOW FOCUSED ON DIGITAL EMAIL MANAGEMENT SYSTEMS FOR SMALL AND LARGE BUSINESSES. AS THEY TRANSITION TO DIGITIZED MAIL MANAGEMENT AND CONTROL SYSTEMS THEIR NET INCOME HAS NOT SUFFERED. WITH A 11% DIVIDEND YIELD AND A PAYOUT RATIO 0F ONLY 21% AND A 4.74 PE, I THINK THIS COMPANY IS AN EXCELLENT BUY.PBI HAS INCREASED THEIR DIVIDENDS EVERY YEAR FOR 30 YEARS WHICH BODES WELL AS A VERY GOOD INVESTMENT. AS ICING ON THE CAKE INSIDERS HAVE BEEN BUYING HEAVILY IN THE $13.50 RANGE IN THE PAST FEW WEEKS.

  2. Comment by IS — June 6, 2012 @ 3:58 am

    @Richard – Interesting yes and no doubt the company will try to adapt, I sent out a newsletter about PBI yesterday, it is a possible good pic for some investors, absolutely.

  3. Comment by Vane Hugo — July 11, 2012 @ 2:47 pm

    A column with Dividend Growth Rate would really be a good addition to this collection.

  4. Comment by IS — July 11, 2012 @ 6:24 pm

    @Vane Hugo – Thanks for the feedback, I am trying to add more dataf, I do recommend that you join our free newsletter to get even more info about all of those stocks

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