Tuesday, August 03, 2010

Top Yielding Quarterly Dividend Stocks

We have run articles on a regular basis about monthly dividend stocks. But it has been a couple years since we posted something about quarterly dividend stocks.

Actually, quarterly is the most common way to pay dividends. When I counted a couple weeks ago, there were 1,997 stocks that paid quarterly dividends, less than 200 that paid semi-annually, and less than 200 that paid annually. WallStreetNewsNetwork.com just published a list of the top quarterly dividend stocks, with dividends as high as 20%. However, I personally believe that once you get above 10% or 11%, the yields are unsustainable; they may be reduced or eliminated, depending on the finances of the company.

There are a few with reasonably high yields and decent financials. The clothing company Cherokee Inc. (CHKE), recently lowered the dividend payout rate but the stock still yields 7.7%. The company trades at 14.6 times current earnings and 11.5 times future earnings. And what I like most about the company is that it is debt free, which makes it much harder for the company to go out of business. The operating cash flow of 14.7 million covers the total dividend payout of 13.4 million.

The health and beauty products company CCA Industries Inc. (CAW) yields 5.3%, and has a price to earnings ratio of 17. The company has only $47,000 in debt (that's 47 thousand, not 47 million), and has an amazing $2.48 in cash per share, almost 50% of the trading price of the stock. The 1.97 million in total dividend payouts is easily covered by the operating cash flow of 4.4 million.

To see the list of top quarterly dividend stocks, most of which have low or no debt, go to WallStreetNewsNetwork.com.

Author does not own any of the above.

By Stockerblog.com

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