5 High-Yielders Going Ex-Dividend in December

Karin is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.

I’ve been analyzing and writing about dividend stocks for several months now. I’m searching out the absolute best of them, in my efforts to find great growth stocks that also provide a completely reliable income stream.

I’ve read hundreds of articles and reviewed the methods utilized by dozens of other investors to choose their stocks. I’m will be presenting my own model portfolio to the Motley Fool community. It will be comprised of ten of the most solid companies available, ones with a terrific history of paying and raising dividends consistently for many years, and companies with excellent growth potential on their own.

I’ll be introducing this portfolio one company at a time, starting this week.

However, while I am revealing this portfolio, I will continue to investigate other dividend-paying companies that may have a future place in my portfolio, and that I think other dividend investors should consider for their own portfolios.

The companies on this list are not the ones that are going to form the foundation of your dividend portfolio. They have not been paying and raising dividends for 10 years, which is the minimum that I am permitting for the ten base stocks in my model portfolio. However, these are stocks that are paying great dividends, and which may merit a spot as part of the higher-risk, higher-reward section of my portfolio once I have the base in place.

Every month I examine the companies that will be paying out dividends, and narrow down the list to the few gems that I think are worth a further look. This month I examined over 300 stocks that are going ex-dividend in December, and found nine stocks that are yielding between 7% and 10% and that have total returns of more than 20% in the past twelve months. Five are outlined here, and four more can be found in this article.

I also found five companies that are yielding more than 10%, which you can find in this article.

In order of yield, highest to lowest:

Apollo Commercial Real Estate Finance (NYSE: ARI) is a REIT that originates, acquires, invests in and manages performing commercial first mortgage loans, commercial mortgage-backed securities and mezzanine financings.

ARI is currently trading at $16 per share and yields 9.7%. It is trading at 8% off its 52-week high, and the trust has returned 40.3% over the past twelve months.

In terms of the Motley Fool community, Apollo Commercial is a five-star CAPS pick, with 40 Bulls and 2 Bears. Professional analysts rate the company a 2.3 (1.0 is a Strong Buy, 5.0 is a Sell) with 3 Strong Buys, 2 Buys, and 6 Holds.

The stock goes ex-dividend on December 27 and will pay a dividend of $0.40 on January 14.

THL Credit (NASDAQ: TCRD) provides junior capital to private and public middle market companies that operate in a variety of industries. It invests primarily in privately negotiated subordinated debt securities.

TCRD is currently trading at $14 per share and yields 9.3%. It is trading at 2% off its 52-week high, and the company has returned 40.5% over the past twelve months.

In terms of the Motley Fool community, THL Credit is a five-star CAPS pick, with 25 Bulls and 1 Bear. Professional analysts rate the company a 1.4 with 3 Strong Buys and 3 Buys.

The stock goes ex-dividend on December 12 and will pay a dividend of $0.33 on December 28.

New Mountain Finance (NYSE: NMFC) operates as a closed-end, non-diversified management investment company.

NMFC is currently trading at $15 per share and yields 9.3%. It is trading at 4% less than its 52-week high, and the company has returned 31.4% over the past twelve months.

New Mountain is not ranked by the Motley FoolCAPS community. Professional analysts rate the company a 1.3 with 3 Strong Buys and 2 Holds.

The stock goes ex-dividend on December 12 and will pay a dividend of $0.34 on December 28.

Fidus Investment (NASDAQ: FDUS) operates as a closed-end, non-diversified management investment company.

FDUS is currently trading at $17 per share and yields 9.2%. The stock is trading at its 52-week high, and the company has returned 51.3% over the past twelve months.

Fidus Investment is not ranked by the Motley FoolCAPS community. Professional analysts rate the company a 1.0 with 4 Strong Buys.

The stock goes ex-dividend on December 5 and will pay a dividend of $0.38 on December 21.

Ares Capital (NASDAQ: ARCC) is a closed-end, non-diversified management investment company, which primarily invests in first and second lien senior loans and long-term mezzanine debt.

ARCC is currently trading at $17 per share and yields 8.7%. It is trading at its 52-week high, and the company has returned 36.3% over the past twelve months.

In terms of the Motley Fool community, Ares Capital is a five-star CAPS pick, with 430 Bulls and 18 Bears. Professional analysts rate the company a 1.4 with 3 Strong Buys and 3 Buys.

The stock goes ex-dividend on December 12 and will pay a dividend of $0.38 on December 28, plus a special dividend of $.05 to be paid at the same time.

Consider adding a couple of these companies to your dividend portfolio to increase its cash flow.

 

 

 


khern0203 has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. Is this post wrong? Click here. Think you can do better? Join us and write your own!

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