5 Great High-Yield Dividend Stocks

by: StockMatusow

In part 1 and part 2 of my best dividend paying stock list, I listed a total of 10 top dividend paying stocks in the market. These stocks were not ranked in any particular order, as each one of them has pros and cons for investors to consider. In this article, I will list 5 High yield dividend stocks for investor consideration. Please note: High yield dividend stock can be a very risky play. Often times these stocks are trading near 52 week lows, may have legal issues, and other various issues that could effect long term pps stability. Be sure to do careful due diligence on these stocks before making an investment into any of them.

Please refer to my article about Seadrill Limited (NYSE:SDRL) which explains in simple terms how the average investor can play dividend paying stocks to their advantage.

Cellcom Israel (NYSE:CEL)

  • 2/17/11 pps: $14.53
  • Dividend yield: 19.47%
  • Dividend type: Cash
  • Annualized dividend: $2.83 per share, $0.5025 last quarter
  • Next Ex-dividend date: Not yet announced, expected in late April

Cellcom Israel provides cellular communications services in Israel. It offers basic and advanced cellular telephone services, text and multimedia messaging services, and advanced cellular content and data services.

On Feb.19th, 2012, Cellcom announced that a purported class action lawsuit was filed against Netvision, a wholly owned subsidiary of the Company, and certain other long distance Israeli operators, in the District Court of Tel Aviv-Jaffa, by a plaintiff alleging that the defendants misled the purchasers of prepaid cards for international calls in relation to certain bonus minutes.

Because the plaintiff in the case has named other Israeli Telecoms in the suit, it's likely a frivolous lawsuit, but be mindful this week on how the stock trades as this news can pressure the pps downwards.

Cellcom has been paying out dividends since 2007, and has a trading beta of 0.90, which indicates decent price stability.

My rating on Cellcom: 3 out of 5 stars.

Knightsbridge Tankers (VLCCF)

  • 2/17/11 pps: $15.50
  • Dividend yield: 12.90%
  • Dividend type: Cash
  • Annualized dividend: $2.00 per share, $0.50 last quarter
  • Next Ex-dividend date: 2/21/2012
  • Record date: 2/23/2012
  • Pay date: 3/8/2012

Knightsbridge Tankers Limited, through its subsidiaries, engages in the seaborne transportation of crude oil and dry bulk cargoes worldwide.

The stock is trading near the bottom of its 52wk Range of $13.48 - $25.80. I recommend investors take a closer look at this company because it primarily engages in oil transportation.

With tensions ramping up in the middle east, we can expect oil prices to continue to rise as concern over supply disruption linger, which could equate to an interim higher stock price for Knightsbridge.

Also take note of the fact that the Knightsbridge ex-dividend date for the current quarter is on Tuesday of this week, which means it is too late to buy the stock to receive this quarter's dividend pay-out. If you are not a holder of the stock on or before last Friday, you will have to wait for the next ex-dividend date which should be in June.

Knightsbridge has a decently stable trading beta of 0.81 and has been paying out dividends since 1997.

My rating on Knightsbridge: 5 out of 5 stars.

Inergy (NRGY)

  • 2/17/11 pps: $18.33
  • Dividend yield: 15.38%
  • Dividend type: Cash
  • Annualized dividend: $2.82 per share, $0.705 last quarter
  • Next Ex-dividend date: Not yet announced, expected in May

Inergy engages in the retail marketing, sale, and distribution of propane to residential, commercial, industrial, and agricultural customers in the United States. The company owns and operates five natural gas storage facilities.

Inergy shares have lost more than half of their value in the last nine months, while its peers garnered nice returns. Inergy has been trending lower since hitting its 52 week high in 2011 of $41.80.

From the 2011 10Q summary, we read the following statement:

Because a substantial portion of our propane is used in the weather-sensitive residential markets, the temperatures realized in our areas of operations, particularly during the six-month peak heating season of October through March, have a significant effect on our financial performance. In any given area, warmer-than-normal temperatures, such as those we experienced in the three months ended December 31, 2011, will tend to result in reduced propane use, while sustained colder-than-normal temperatures will tend to result in greater propane use.

I list the above for investor consideration on Inergy, as it is a very materially relevant fundamental factor. Yes, the stock has lagged the last 9 months, but I believe this will turn around because I see demand picking up on propane gas, as I expect a colder period to ensue from now until the end of April.

This is a good time in my opinion to pick up shares on the cheap in this company, both to receive a dividend and an equity increase in the position. I believe the stock is oversold and should see a nice bounce in the short term, possibly back over $20.

Inergy has a decently stable trading beta of 0.80, and has been paying a consistent dividend since 2001.

My rating on Inergy: 5 out of 5 stars.

Oxford Resource Partners (OXF)

  • 2/17/11 pps: $14.28
  • Dividend yield: 12.25%
  • Dividend type: Cash
  • Annualized dividend: $1.75 per share, $0.4375 last quarter
  • Next Ex-dividend date: Not yet announced, expected in May

Oxford Resource Partners engages in the production of steam coal and surface mined coal in the United States. It holds interests in approximately 21 active surface mines that are managed as 8 mining complexes located in Northern Appalachia and the Illinois Basin.

Oxford is yet another materials/energy stock trading near its' 52 week low of $13.50, which is down from its' 52 week high of $28.35 in 2011.

After being privately owned for 20 years, Oxford chose to take their coal mining company public in 2010, believing it would provide the operation more access to capital. The company has had a good track record of safe production over the years, and I feel the price has been beaten up a bit too much. This dividend play is far riskier than the others because it is a newer listing on the market. The Oxford 10Q is expected on Feb.29th, 2012, so investors might want to hold off until that time to gauge the direction of the stock better. Because the yield is so high, and because the company has been around for a long time, albeit privately owned, Oxford makes this list.

Oxford has been paying dividends since its listing from October 2010. Current trading beta numbers are not available at this time.

My rating on Oxford: 3 out of 5 stars.

CenturyLink (NYSE:CTL)

  • 2/17/11 pps: $39.26
  • Dividend yield: 7.39%
  • Dividend type: Cash
  • Annualized dividend: $2.90 per share, $0.725 last quarter
  • Next Ex-dividend date: Not yet announced, expected in March

Century Link operates as an integrated communications company. The company provides a range of communications services, including voice, Internet, data, and video services in the continental United States,

On Feb.16th, 2012, Century Link announced its Q4 profit dropped by more than half, coming in at $0.55 of adjusted earnings per share, as hefty one-time charges more than offset contributions from the two recent acquisitions of Qwest and SAVVIS. The good news is that operating revenue nearly tripled to $4.65 billion from $1.72 billion, beating average Wall Street estimates of $4.62 billion. Its Prism TV product grew by 30% quarter over quarter, which is also good news.

Century Link is a company in a small transition period, as more telephone customers are moving to products like Magic Jack plus, which offer all the benefits of a regular land line, at a fraction of the cost. I believe the focus for investors here looking for a solid dividend is to look at the company's solid cash position and growth moving forward into different segments of communication, namely with its Prism TV product.

Prism TV is currently available to only 1 million homes in CenturyLink's service areas, though the company expects to double that number in 2012 as only 7% of those potential customers have signed up for Prism service so far. This leaves a lot of potential growth moving forward for the company to tap into, notwithstanding the acquisitions of Qwest and SAVVIS, which should also help to grow Centurylink.

CenturyLink has been paying out dividends since 1987, and has a trading beta of 0.56, which is very stable.

My rating on Centurylink: 5 out of 5 stars.

There are lots of great dividend paying stocks in the market and I will try to bring you more of my picks in upcoming articles.

Dividend data sourced from dividend.com and dividata.com

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Disclaimer: This article is intended for informational and entertainment use only and should not be construed as professional investment advice. Always do you own complete due diligence before buying and selling any stock.