As Investors brace for what could be yet another summer filled with eurozone woes, they are in the market for an alternative method to provide some solace in the way of returns. Whether you love energy companies, or nice sized yields, I've got two picks that will enhance your portfolio. Considering the fact most growth and income investors love medium to high yielding stocks, these two US companies carrying dividends that pay at least 3.5% will certainly brighten any dividend portfolio.
Entergy Corporation (ETR) - Founded in 1989 and based in New Orleans, Louisiana, ETR currently trades at a P/E ratio of 12.13 and yields 5.2%, making the stock cheap by most investing standards. For the second quarter analysts are expecting ETR to earn $1.40/share on revenue of $2.89 billion dollars and for the year analysts are expecting ETR to earn $5.31/share on revenue of $11.53 billion dollars. Investors should note that ETR just received a 20-year license renewal at their Pilgrim Nuclear Reactor, which should contribute nicely to the company's bottom line over that period. For those looking to establish a position in ETR, do so moderately buy additional shares during price dips and as the dividend date approaches. First quarter earnings weren't so hot, as the company missed street estimates by a lot, however I feel that this miss was just an anomaly and the company should return to profitability during the second quarter.
General Electric (GE) - Founded in 1892 and headquartered in Fairfield, Connecticut, GE currently trades at a P/E ratio of 15.92 and yields 3.5% ($0.68), making the stock pretty affordable by most standards. For the second quarter analysts are expecting GE to earn $0.38/share on revenue of $36.90 billion dollars and for the year they expect GE to earn $1.55/share on revenue of $149.97 billion dollars. GE has seen a short term rise as of late on the news of $4.5 billion dollar 'special dividend' which will be paid on behalf of its GE Capital subsidiary and be paid out through a series of stock buybacks. Investors looking to establish a position in GE should do so based on the fact that the company yields 3.5% and has surpassed analyst estimates each of the last four quarters.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
