Time to Buy in for 3 to 5 Percent Yields on Four Notable Stocks

By Farah Lalani - March 30, 2012 | Tickers: GIS, RTN, SYY, VZ | 0 Comments

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With the dividend dates approaching for four notable stocks, investors wanting to get into the dividend game can be rewarded between 3 to 5 percent.

General Mills

Known for its Big G cereals and Betty Crocker desserts and baking mixes, this major producer of packaged consumer foods is approaching its ex-dividend date on April 5. General Mills has a strong brand position, which keeps this company ahead of competition from less expensive private label products. General Mills offers the opportunity to earn 3.10 percent dividend yield. Although the dividend yield is less than others on this list, General Mills is relatively a safe stock with long-term growth and stability in earnings and dividends. $10,000 invested five years ago, would now be worth approximately $15,449.

Sysco

A North American distributor of food and related products, Sysco primarily serves to the foodservice or food-away-from-home industry. Sysco is approaching its ex-dividend date on April 3 and is yielding 3.60 percent. Due to its large market share, Sysco has slowed down its growth rate. The company can profit more by focusing better on freight cost and inventory controls. Although Sysco operates in a relatively stable industry and much of the company’s sales are for restaurants, sharp increases in gas prices remain a threat to the company. Higher gas prices means increasing freight costs and decreasing disposable income for restaurant goers. Sysco is relatively a higher risk stock for long term growth.

Raytheon

Raytheon specializes in defense, homeland security and other government markets worldwide. This technology company operates in six business segments: Integrated Defense Systems, Intelligence and Information Systems, Missile Systems, Network Centric Systems, Space and Airborne Systems, and Technical Services. Raytheon is approaching its ex-dividend date on April 2 and is yielding 3.80 percent. In January, Raytheon reported fourth quarter 2011 earnings of $1.58 per share beating last year's fourth quarter results by 15.3 percent. Additionally, Raytheon has increased its dividend by 16 percent this year, bringing the annual dividend to $2 per share from the previous payout of $1.72 per share. The company will now pay a quarterly dividend of 50 cents per share compared with the prior quarterly dividend of 43 cents per share. This is the eighth consecutive year that the company has increased its dividends.

Verizon

Verizon provides communications, information, and entertainment products and services to consumers, businesses, and governmental agencies worldwide. Verizon has sound fundamentals and this seems to be appropriately reflected in the company's stock price. Due to its large size, Verizon holds substantial pricing power over its suppliers giving the company more flexibility in its cost margins. This is offset by the risk of competition it faces offering telecom services. Verizon reported fourth quarter 2011 earnings of $0.52 per share. This result missed last year's fourth quarter results by 3.70 percent. Verizon’s high dividend yield and stable dividends history make this stock a good buy.

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