6 Low Yield, High Payout Dividend Growers

by: Scott's Investments

Below is a list of 6 stocks yielding more then 3% with a dividend payout ratio less than 70% as of the close on March 23rd. In addition, I required the stocks have a recent history of rising dividends. I looked for:

  • Dividend Percent Change, Year Over Year (%) > 10
  • Dividend Growth Rate, 3 Years (%) > 15
  • Dividend, 5 Year Growth Rate (%) > 20

The screen was done using stockscreen123.

February's screen results can be found here. This month's list is smaller compared to last month's list due primarily to share price appreciation causing yield to drop below 3% and also some stocks having a 1 year dividend growth rate now below 10%.

Two additions to this list are TKC and OSG. Shippers are potentially volatile, so OSG may not fit the typical dividend investor's risk profile but there may be potential to use trading strategies for those interested. TKC is an emerging markets telecom stock based in Turkey which, again, may not fit a typical dividend investor's risk profile. However, what intrigues me about TKC is the yield in excess of 5%, low debt (.26 debt/equity, source: Finviz), low valuation (forward P/E 9.71, source: Finviz), and the fact that the stock offers diversification through exposure to a dividend paying stock in an emerging market.

For investors worried that equity market - including emerging market - rallies may be getting long in the tooth, high yield emerging market stocks with strong cash flow may offer a small buffer for skittish investors who still want to maintain equity exposure.

Ticker Name Trend Yield Div5YCGr% PayRatioA
HCBK Hudson City Bancorp, Inc. Here 4.3 22.03 54.7
LLTC Linear Technology Corporation Here 3.19 25.16 62.1
LPHI Life Partners Holdings, Inc. Here 4.43 26.48 13.54
MCD McDonald's Corporation Here 3.28 30.1 49.12
OSG Overseas Shipholding Group In Here 4.16 20.11 67.16
TKC Turkcell Iletisim Hizmetleri Here 5.43 32.27 65.2

Disclosure: No Positions