Posted on | June 4, 2012 | Comments Off
The stock market can be very fickle and tracking down the top five dividend paying stocks in 2012, can be difficult, very few people will actually have their money invested in all of the top paying dividend stocks at any one time, but keeping a close watch on the markets will provide at least some insight into which companies are heading in the right direction and able to provide a good rate of return for your investment.
The Top Dividend Stocks of 2012
This by no means is a complete list of the stocks, but it’s a good sample. We’ll continue to add more top paying dividend stocks over the next few weeks.
Navios Maritime Partners L.P. (NYSE:NMM)
With a 13.8% yield Navios Maritime Partners L.P. (NYSE:NMM) continue to perform well, and although Navios Maritime have their headquarters technically in Greece, they conduct most of their business outside of the EU and Greece. Navios Maritime, trade in dollars with the majority of their business centered in Asia. Navios owns some 18 dry-bulk ships (most of which are registered outside of the EU), most of which operate outside of the European Union and Greece. The majority of Navios contracts are with companies in Asia; all this limits the exposure of the company to the problems being experienced in Greece. The problems in Greece and the European Union have made some investors rather nervous, but those with Navios Maritime Partners L.P. (NYSE:NMM) shares, are enjoying an excellent return. However it would appear returns from Navios Maritime investment are going to be good for some time to come, with 97% of Navios Maritime capacity already booked for 2012, 79% booked for 2013 and 77% booked for 2014, the future for Navios Maritime Partners L.P. (NYSE:NMM) is looking good, with yields of 13.8%.
Banco Macro SA (ADR) (NYSE: BMA)
An Argentina-base financial institution, that offers traditional banking products and services to businesses and individuals nationwide. The bank focuses on several niche services including: personal banking, corporate banking, loans, insurance, credit cards and investment advice among others.
Box Ships, Inc. (NYSE: TEU)
With a market cap of $124 million this company is currently trading near it’s 52 week low of $7.70. The price to earnings is currently 9.28.
The company specializes in transportation of containers. It’s net profit margin in December 2011 was 34.38%.
China Mobile (NYSE: CHL)
With the increase in Cell Phone sales in China the best and largest telecommunications company is China Mobile (NYSE: CHL) and due to their huge market China Mobile is an excellent choice for investment. China Mobile continue to increase their market despite the economic slumps in other parts of the world, which has seen a down turn in many markets in other parts of the world. China Mobile has become the world’s biggest wireless telecommunications company, with more than 650 million subscribers; and this figure is set to increase throughout the year and in the future, with wireless technology still new to so many of the Chinese population.
China Mobile holds about 45% of the 3G mobile data market, 70% of the 2G data market, that’s and around two-thirds of the whole of the Chinese mobile market. It is predicated that China Mobile will be able to increase their market by about 67% in the near future.
Cracker Barrel Old Country Store (NASDAQ: CBRL)
We are just a the beginning of the ‘baby boomers’ reaching retirement age, which for many can mean a reduction in income; and with the downturn in finances for many families across the United States, stores which are able to provide foods at affordable prices have seen a huge increase in sales. This increase is being reflected in profits and with the continuing economic climate and some 10,000 ‘baby boomers’ retiring every day in the US, the trend for shopping at lower priced food stores seems sure to keep increasing. Both Cracker Barrel Old Country Store (NASDAQ: CBRL ) and Bob Evans Farms (NASDAQ: BOBE) look set to continue their progress and promise to further increase their share of the market, offering very strong competition to companies such as Wal-Mart, as more and more people feel the effects of a reduction in their income.
Cummins Inc. (NYSE: CMI)
Cummins Inc. make diesel engines for trucks, cars, buses and construction vehicles, they have also invested in natural gas engines, electric power-generation systems and also engine components. With annual revenue of around $10 billion, shares of Cummins have risen some 124% in the last 5 years. With an annualized rate of some 17.5% and an annual dividend yield on average of 1.3% during the past 5 years you can expect a total return of 18.8%.
The secret to Cummins success is not to have too much exposure in the weak European Markets; rather Cummins have focused their efforts in the Latin American and Asia markets. Partnerships with companies such as LiuGong Machinery Co. China and the Latin American distributor Grupo Laeisz to sell and service Cummins diesel engines and power generators in Costa Rica and El Salvador.
Cummins have made excellent gains for example in the in the first quarter of 2012 their sales rose 16% to $4.5 billion when compared to the same period last year.
With both the Latin American and the Asian markets both set to vastly increase in the future Cummins is looking at an ever improving future, which has to be good news for investors.
Intel Corporation (NASDAQ: INTC)
The Intel Corporation who specialize in computer chips, including the processors for the Android and smart phones, have proved many of their critics wrong, who foresaw Intel struggling in the technical market due to Apple’s introduction of their own processor for the very popular iPhone. However thanks to the popularity of Android powered smartphones, the Intel Corporation has proved to one of the fastest growing sectors, which is very good news for investors, as the Intel Corporation is one of the highest dividend paying companies. With the rapid expansion expected in the Asia markets of Android based mobile phones the Intel Corporation looks to have a very long and profitable future ahead of it. At present Android based phones are the number one seller in the American market, with Smart phone sales rapidly becoming the choice over the iPhone around the world.
Getting the best return on investment is an art, knowing what to invest in and when to sell in favor of a possibly stronger option to a large extent comes with experience and the ability to read the trends. Just keep in mind that a higher Yield doesn’t always mean its a great deal. Sometimes, the higher the yield, the higher the risk.