Posted on | August 24, 2012 | Comments Off
With summer now dwindling down, college students across the nation are gearing up for class. Most will go the traditional route and attend public, non-profit universities but others (mostly those who need more flexible schedules) will attend for-profit online schools. Accredited colleges designed for adult learners like Kaplan, the University of Phoenix, and Post University might have had a tainted reputation in the past due to illegitimate diploma mills, but now online schools are getting extremely popular—not only in enrollment but with investors as well.
Deciding to invest in a for-profit school typically involves some risks but if you select the right for-profit schools you can experience high yield and strong dividend growth. That said, below are some of the more lucrative for-profit education stocks to invest in if you might be considering this route.
Strayer Education Inc.
Strayer Education Inc. (NASDA: STRA) is a postsecondary education corporation that offers an array of both traditional and online programs designed primarily for working adults. Currently the company has about 90 brick-and-mortar institutions sprinkled across the nation and enrolls about 44,000 students each year. Strayer institutions are accredited by the Middle States Commission on Higher Education. Yield: 5.8%; Dividend: $4
DeVry Inc. (NYS:DV)
DeVry Inc. is one of the largest publicly held education institutions in the nation, especially known for their online business administration degree programs. Aside from operating DeVry University, DeVry Inc. is also the parent company of many other subsidiary secondary and postsecondary online and hybrid schools such as Carrington College, Chamberlain College of Nursing, Ross University, Becker Professional Education, and Advanced Academics. Yield: 1.5%; Dividend: .30 cents
National American University Holdings Inc.
Formerly known as Camden Learning Corporation, the National American University Holdings (NASDQ: NAUH) operates National American University (“NAU”), a regionally accredited multi-campus and online higher education institution for alternative learning. Enrollment increased 12% as of May 31, 2012 to a record 11,221 students. The company also owns a multi-family residential real estate facility in South Dakota. Yield: 3.2%; Dividend: .13 cents
Nadia Jones is a resident education blogger at onlinecollege.org, a website that is devoted to both online and traditional secondary/ postsecondary education. She also thoroughly likes writing articles that explain the financial opportunities investors can find in various online higher education companies. For questions and comments reach her at firstname.lastname@example.org.