3 boring stocks with exciting dividends

If you're looking for eye-popping payouts, look no further.

By InvestorPlace Oct 24, 2013 1:19PM

Image: Stocks circled in newspaper (© Digital Vision/Getty Images)By James Brumley


iplogoNames like Tesla (TSLA), Netflix (NFLX) and Amazon (AMZN) might get a lot of attention on Wall Street, but not all stocks can be head-turners.


In fact, sometimes the best stocks to buy are actually obscure, irrelevant and even downright boring. Boring can often be just what a portfolio needs. . .  if the dividends are big enough and reliable enough.


Here are three stocks boasting some of the market's best dividends -- all with with yields much stronger than the (mostly) risk-free 10-year Treasury yield of 2.5%.


What these dividend stocks lack in pizzazz they more than make up for with punch for income seekers.


Take a look:


New York Community Bancorp

Dividend Yield: 6.4%

Based on the tepid dividends being paid by the likes of Bank of America (BAC) or Citigroup (C), it would be easy to assume none of the major banking stocks are doling out much in the way of quarterly payments.


That would be an errant assumption, however.


New York Community Bancorp (NYCB) currently boasts a yield of 6.3% -- and it's not going anywhere either. The company has paid out 25 cents per share dividends every quarter since 2004, even when it wasn't easy to do so.


Heck, even when times were tough and earnings were contracting in 2008, New York Community Bancorp could still afford to share the wealth. That's a sign of prudent cash flow management.


Suburban Propane Partners

Dividend Yield: 7.2%

As the name implies, Suburban Propane Partners (SPH) sells propane via a home-delivery service. It also supplies heating oil, kerosene and natural gas to a variety of individual, industrial and utility customers.


Yes, it's "old school" to say the least.


It's also a fairly-reliable model, however, allowing Suburban Propane Partners to pass along dividends worth 7.2% of the stock's current price.


The yield could about to ramp up, too. Last year, Suburban Propane Partners acquired a company called Inergy, which has already shown an increase in EBITDA. More synergies are likely to be on the way as the integration continues to be hammered out through the end of 2013 and into 2014.


AllianceBernstein Holding

Dividend Yield: 7.4%

Money management firm AllianceBernstein Holding (AB) currently yields 7.4%, but those dividends could -- and likely will -- grow in the foreseeable future.


The nature of the money-management business can ebb and flow considerably, sometimes with the economic cycle, and sometimes apart from it.


One thing is clear, though: AllianceBernstein is capable of putting up big revenue and earnings numbers. When it does, it ups the dividend to reflect those larger profits and wider margins.


And with a 63% increase in last quarter's earnings on top of a $60 million acquisition of another investment firm a couple of months ago, there's room for dividend growth.


For two more boring stocks with stellar dividends, click here.


More from InvestorPlace


5Comments
Oct 24, 2013 3:19PM
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Great advice (SARCASM) -- I took their advice when they published a similar article awhile back and lost a bundle ... The recommended stock had an EPS of less than half what they were paying out -- within 4 weeks the stock was down 40% after cutting the dividend by 75% (Never made the next payout after the article!).
So today's rec's:
SPH  "7.2% yield and could ramp up" Makes EPS $1.44 but pays out $3.40 ... hmmm
AB - "Currently yields 7.4% are "LIKELY" to grow"  Makes EPS $0.81 but pays out $1.64 ... hmmm
NYCB is the only recommendation that even makes enough (barely) to cover the dividend ... it pays out 90% of what it makes
The question is ... how long can a company continue to pay OUT 2 - 2.5 times what they are taking in? This is not advice it's a request for donations ... 
Oct 24, 2013 9:42PM
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if these company's are so good how come the writer  doesn't  have there money in it ; you know put your money where your mouth is.
Oct 25, 2013 9:58AM
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It did not take the pump and dumpers long to get started this  morning ... right from the opening ... driven by greed ...
Oct 24, 2013 2:45PM
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With hope, I thought stock market would go up 200?
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