Earning More Income from Solid Dividend Paying Stocks

With the increasing trend shown by interest rates it has been observed that investors are looking everywhere for stocks with stable returns. Many stocks have changed the trends and now are not that profitable as they used to be. While looking for any kind of investment there are different things to look at to pick a good stock. There are different strategies to pick stocks. One of the most straightforward strategies to look at is steady stream. While thinking about steady income one will always think about fixed income securities like bonds. But there are some stocks, which can offer steady dividends and also give some handsome return.

If you are looking for steady returns in stocks you should focus on solid dividend paying stocks. In order to look for these stocks the focus should be towards older, mature and more established firms, which have attained a certain level and can no longer sustain higher growth levels. These companies are not much expanding now like other growing companies, which are investing their retained earnings into themselves, but these mature firms are passing over their earnings to their investors and are paying some good dividends.

Dividends are more common in few industries like utilities, which have a record to pay decent dividends in past many years and will continue to do so in coming future. Here I am going to discuss three stocks, which are expected to pay solid dividends in coming time.

Matt Frankel: It is business development company and provides services to private businesses. It has to pay most of its earnings to avoid corporate taxation. Prospective yield is around 12.2%, which is the type of yield shown by REITs with some inconsistencies lately. Unlike other stocks, it is paying monthly dividends and is also increasing its dividend slightly every month. Prospect has also taken steps to diversify its portfolio in order to minimize its risk. It is expected that with these new additions company would be able to give better and steady returns in future as well.

Patrick Morris: New York Community Bancorp has been one of the most consistent dividend payers since 1994. It has paid dividend every quarter since 1994 and is paying $0.25 per quarter since last 40 quarters. Although investors don’t like much to invest in banks but this one is an exception because of its dividend paying history. In addition to 6% yield the management of this bank has done a great job in investing in less risky but highly profitable multi-family and commercial industries. It has done an amazing job in managing its costs and attaining such level of efficiency.

Jordan Wathen: The third one on the list is also a business development company. This company is also a very good option for steady returns. The most attractive things about this firm are its cost structure and capital structure. It has utilized its resources very well and has achieved a great level of efficiency. With all this, it is a very good option to invest for gaining stable and long-term dividends.