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4 Special Dividend Plays
(public) 0.12% February 09
4 Special Dividend Plays -- and They're Huge!
I'm about to give you the names of four special stocks paying out dividends that blow the lid off the average yield of S&P 500 stocks. In fact, these yields range from 2.5 times to more than eight times the yield of an average S&P stub. Even better, several of these stocks have near-term catalysts that could raise those dividends substantially, driving shares higher. Then I'll give you special access to thirteen more dividend stock picks from our top analysts.
If that sounds interesting, then read on.
Special dividend situations
In my Rising Stars portfolio,
I follow stocks that have a specific catalyst to unlock value and that
are underappreciated by the market. I love to focus on one of the great
catalysts -- dividends -- so you get paid to wait for your thesis to
play out and then you have a concrete driver of higher share prices.
The idea that dividends drive stock prices shouldn't be too surprising. After all, one of the key ways to value a stock is to look at its future dividend payments and discount them back to the present to determine the stock's intrinsic value. But a key assumption of this model is that a stock has a lot of time to continue growing its dividends. So you need to be extremely wary of companies -- even those with huge dividends -- that have a clearly limited life.
| Asset | Fund in this portfolio | Price change* | Percentage |
|---|---|---|---|
| Asset1 | NLY (Annaly Capital Management Inc) | 0.75% | 41.07% |
| Asset1 | SSW (Atlas Corp) | 0.51% | 13.56% |
| Asset1 | VOD (Vodafone Group PLC ADR) | 1.03% | 23.70% |
| Asset1 | CVI (CVR Energy Inc) | 0.45% | 21.67% |
* Day change on 12/30/2011.
Previous
Since 10/24/2007
| Name | YTD* Return |
1Yr AR** |
3Yr AR** |
5Yr AR** |
10Yr AR** |
15Yr AR** |
|---|---|---|---|---|---|---|
| 4 Special Dividend Plays | N/A | 15.6% | 26.4% | N/A | N/A | |
| VFINX (Vanguard (S&P 500) Index) | 7.9% | 27.1% | 8.5% | 13.8% | 12.5% | 14.6% |
| VBINX (Vanguard Balance (60% stocks/40% bonds) | 3.5% | 15.3% | 2.8% | 7.9% | 7.7% | 9.7% |
* YTD: Year to Date
** AR: Annualized Return
| 1 Yr | 3 Yr | 5 Yr | 10 Yr | Since 10/24/2007 |
2012 | 2011 | 2010 | 2009 | 2008 | 2007 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Annualized Return(%) | 15.6 | 26.4 | NA | NA | 4.0 | 14.2 | 11.0 | 34.8 | 27.2 | -46.6 | 2.0 |
| Sharpe Ratio | 0.59 | 0.98 | NA | NA | 0.1 | 1.11 | 0.41 | 1.89 | 0.72 | -0.86 | 0.06 |
| Draw Down(%) | 18.8 | 23.9 | NA | NA | 65.1 | 1.8 | 18.8 | 14.9 | 24.5 | 65.1 | 10.3 |
| Standard Deviation(%) | 26.7 | 27.0 | NA | NA | 36.3 | 12.8 | 26.7 | 18.3 | 37.4 | 55.2 | 25.8 |
| Treynor Ratio | 0.17 | 0.27 | NA | NA | 0.03 | 0.2 | 0.12 | 0.44 | 0.24 | -0.42 | 0.02 |
| Alpha | 0.05 | 0.04 | NA | NA | 0.04 | 0.3 | 0.05 | 0.08 | 0.01 | -0.01 | 0.11 |
| Beta | 0.94 | 0.98 | NA | NA | 1.06 | 0.71 | 0.94 | 0.79 | 1.13 | 1.12 | 0.91 |
| RSquared | 0.66 | 0.66 | NA | NA | 0.68 | 0.23 | 0.66 | 0.61 | 0.69 | 0.7 | 0.58 |
| Sortino Ratio | 0.81 | 1.36 | NA | NA | 0.13 | 2.34 | 0.57 | 2.81 | 0.99 | -1.11 | 0.09 |
| Yield(%) | 8.07 | 9.41 | N/A | N/A | 9.32 | 0.0 | 8.9 | 9.97 | 11.52 | 5.68 | 1.2 |
| Dividend Growth(%) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
*: NOT annualized;YTD: Year to Date
**Inception: starting from 10/24/2007
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