3 rock-solid dividend payers
Savvy investors know to go with dividend security over outright size.
By Richard Lehmann, Forbes/Lehmann Income Securities Investor
A slew of investors are turning over every rock they can find to get big yields, but the stocks below offer healthy yields and the security of knowing they'll be paying them for years to come.
They're also eligible for qualified dividend income (QDI) tax treatment.
AT&T (T) is a communications holding company. Through its subsidiary and affiliates, it is the leading U.S. provider of local and long distance voice services, manages the nation's largest Wi-Fi network (based on branded and operated sites), and operates the nation's fastest mobile broadband network with the largest international coverage of any U.S. wireless carrier.
Its services offer voice coverage in more than 225 countries, data roaming in more than 205 countries, and mobile broadband in more than 145 countries.
AT&T is the only U.S. national service provider to offer a 100% IP-based television service with AT&T U-verse TV, and recently launched the first integrated Wireless Receiver, which lets customers move and watch their TV virtually anywhere in their home.
For the fourth quarter and full year of 2011, the company reported revenue of $32.5 and $126.7 billion respectively, with a net loss of $6.7 billion for the quarter and net income of $3.94 billion for the year. Posted revenues for the same periods in 2010 were $31.4 and $124.3 billion, and net income was $1.09 and $19.9 billion. The large reported loss for the fourth quarter came from the breakup fees incurred from the failed acquisition of T-Mobile USA.
The high QDI-eligible (15% tax) dividend on this stock appears safe, thus making it a good choice for all risk levels. Buy at or below $31.25.
"Avon calling" is a familiar quote in advertising for the world's largest direct seller of cosmetics and beauty items. With approximately 6.5 million active independent Avon Products (AVP) sales representatives, the company markets in more than 100 countries. In addition to direct selling, Avon also sells by catalog and through its website.
Its product lines includes cosmetics, fragrances, toiletries, jewelry, apparel, and home furnishings. They are sold under brand names such as Avon Color, Anew, Skin-So-Soft, Advance Technique, and Avon Natural.
For 2011, the company reported quarterly revenue of $3.04 billion and annual revenue of $11.29 billion. At the same time, it had a quarterly net loss of $400,000, but an annual net income of $513 million. The previous year, it had revenues of $3.18 and $10.86 billion. Net income was $229.5 million for the quarter and $606 million for the year.
This QDI-eligible (15%) security is ideal for all risk levels of growth and income portfolios. Buy at or below $21.
Exelon Corporation (EXC) and Constellation Energy have signed a definitive agreement to combine their two companies under the name Exelon Corporation.
The merger creates the No. 1 competitive energy provider, with one of the lowest-cost power generation fleets and one of the largest commercial, industrial, and residential customer bases in the country. Its services will reach about 35,000 commercial and industrial customers and millions of households through retail and wholesale sales across 38 states, the District of Columbia, and the Canadian provinces of Alberta and Ontario.
Its generation fleet is 55% nuclear, 24% natural gas, and 8% renewable and hydro.
For the fourth quarter and annual 2011, total revenue was $4.15 and $19.47 billion, both down from the previous year's numbers of $5.05 and $21.06 billion. For the same periods of 2011, net income was reported at $606 million and $2.5 billion. Fourth quarter and annual 2010 net income was $524 million and $2.56 billion.
This QDI-eligible (15%) stock is appropriate for any risk level. Buy at or below $41.50.
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