Five Super-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.

Please note: This is part three of a three-part series.

I examined over 300 stocks that are going ex-dividend in December, and found five stocks that are yielding more than 10% and that have total returns of more than 20% in the past twelve months.

The five companies on this list are all paying over 10% in dividends. Yes, that makes them fairly high-risk, since that is quite an exceptionally high yield. However, I’ve eliminated the companies that have not performed well over the past twelve months, so you can rest assure that these stocks are no laggards.

I also found nine companies that are yielding between 7% and 10%, which you can find in this article.

In order of yield, highest to lowest:           

Technology Investment Capital (NASDAQ: TICC) is a specialty finance company principally providing capital to small- and medium-sized technology-related companies.

TICC is currently trading at $10 per share and yields 11.8%. The stock is trading at 10% less than its 52-week high, and the company has returned 33.8% over the past twelve months.

In terms of the Motley Fool community, Technology Investment is a five-star CAPS pick, with 290 Bulls and 8 Bears. Professional analysts rate the company a 2.1 (1.0 is a Strong Buy, 5.0 is a Sell) with 3 Strong Buys, 1 Buy, and 4 Holds.

TICC has been paying dividends consistently since 1Q 2004, although it did cut in 2008 and in 2009. Since Q1 2009, however, the dividend has been raised 6 times, from 20 cents per share to its current level of 29 cents per share. The one-year DGR is 16.0%.

The stock goes ex-dividend on December 15 and will pay a dividend of $0.29 on December 31.

Fifth Street Finance (NASDAQ: FSC) invests in small and mid-sized companies in connection with investments by private equity sponsors.

FSC is currently trading at $11 per share and yields 11.1%. The stock is trading at 3% less than its 52-week high, and the company has returned 34.7% over the past twelve months.

In terms of the Motley Fool community, Fifth Street Finance is a four-star CAPS pick, with 189 Bulls and 15 Bears. Professional analysts rate the company a 2.5 with 1 Strong Buys, 4 Buy, and 8 Holds.

Fifth Street Finance has paid dividends monthly since Q4 2010, when it switched from paying quarterly. It has paid (or will pay) the same 9.58 cents per share distribution for 9 quarters. Net income for the FY ended Sept. 30 is up 106% versus the same time 2011.

FSC goes ex-dividend on December 12 and will pay a dividend of $0.0958 on December 28. This company pays dividends monthly, and has been on my high-yielders list for 3 months now.

Gladstone Capital (NASDAQ: GLAD) is a specialty finance company which operates as a closed-end, non-diversified management investment company.

GLAD is currently trading at $8 per share and yields 10.5%. The stock is trading at 12% less than its 52-week high, and the company has returned 24.7% over the past twelve months.

In terms of the Motley Fool community, Gladstone Capital is a three-star CAPS pick, with 121 Bulls and 8 Bears. Professional analysts rate the company a 3.2 with 1 Buy, 4 Holds and 1 Sell.

Gladstone Capital has paid consistently, monthly, since Q4 2003, when it switched from quarterly distributions. The distribution increased steadily through Q1 2008, when it was cut during the 2008-2009 fiscal crisis. Since Q2 2008, the company has paid a reliable 7 cents per share every month, for 45 months.

The stock goes ex-dividend on December 17 and will pay a dividend of $0.07 on December 28. This company pays dividends monthly.

Blackrock Kelso Capital (NASDAQ: BKCC) provides middle-market companies with flexible financing solutions, including senior and junior secured, unsecured and subordinated debt securities and loans, and equity securities.

BKCC is currently trading at $10 per share and yields 10.3%. It is trading at 4% from its 52-week high, and the company has returned 42.9% over the past twelve months.

In terms of the Motley Fool community, Blackrock Kelso is a three-star CAPS pick, with 150 Bulls and 7 Bears. Professional analysts rate the company a 3.1 with 1 Buy, 6 Holds and 1 Sell.

Blackrock Kelso has paid distributions consistently since Q3 2007. Like many of these companies, it cut distributions in Q1 2009. Since then, however, it has raised distributions, from 16 cents to its current 26 cents, which is has been paying since Q2 2011. Net investment income per share is up 10% in the 9 months ended9/30/12versus 2011.

The stock goes ex-dividend on December 18 and will pay a dividend of $0.26 on January 3.

Apollo Investment (AINV) is a closed-end, non-diversified management investment company which invest primarily in middle-market companies in the form of mezzanine and senior secured loans, as well as by making direct equity investments in companies

AINV is currently trading at $8 per share and yields 10.0%. It is trading at 3% less than its 52-week high, and the company has returned 36.7% over the past twelve months.

In terms of the Motley Fool community, Apollo is a four-star CAPS pick, with 1,120 Bulls and 45 Bears. Professional analysts rate the company a 2.5 with 2 Strong Buys, 3 Buys, and 9 Holds.

Apollo Investment was also forced to cut its distribution dramatically in Q1 2009, from 52 cents per share to 26 cents. This was increased to 28 cents per share by Q4 2011, but was again reduced, to 20 cents per share, in Q1 2012, where it remains. Net investment income for the six months ended9/30/12is 36 cents per share, versus a loss of $1.36 per share in the same period of 2011.

The stock goes ex-dividend on December 14 and will pay a dividend of $0.20 on January 4.

These are definitely not stocks that you want to put in your dividend portfolio and forget about, they are far from being the Dividend Champs that you want to hold forever. But they have performed well over the past twelve months, far better than the S&P 500, and their yield is far better as well. They are surely worth some consideration, perhaps in the higher-risk, higher-reward portion of your portfolio.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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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