Most investors don't keep tabs on their companies' fundamental values. That's a mistake. If you take the time to read past the headlines and crack a filing now and then, you're in a much better position to spot potential trouble early. Better yet, you'll improve your odds of finding the underappreciated home run stocks that provide the market's best returns.
We can help you keep tabs on your companies with MyWatchlist.com, our free, personalized stock-tracking service. Here are three dividend stocks for your watchlist.
1. Mesabi Trust (NYSE: MSB )
Similar to Great Northern Iron Ore (NYSE: GNI ) , Mesabi Trust is a royalty trust with large holdings of iron ore and is a great way to gain direct exposure to iron ore. The ore is mined by Northshore Mining, a subsidiary of Cliffs Natural Resources (NYSE: CLF ) . Shares have been falling after the firm announced last week that its first quarter distribution will be more than 50% lower than last year's and could present a buying opportunity if the stock falls further. The drop in dividend really should not have come as a surprise to anyone who has been reading the writings of James Duade, an analyst whose estimates of the quarterly distribution (2011Q1)(2010Q4) have been right on the money. If you believe iron ore is poised to continue its bull run, Mesabi Trust is for you.
2. CAPS' Weekly Top Stock Idea: RAIT Financial Trust (NYSE: RAS )
Each week, I cull a top stock idea from the pitches on CAPS, The Motley Fool's 175,000-member free investing community. RAIT Financial Trust, a pick from December, caught my eye since its shares have fallen recently. RAIT, along with competitors American Capital Agency (Nasdaq: AGNC ) and Annaly Capital (NYSE: NLY ) , is a REIT focused on the real estate financing market. While the company didn't pay a large dividend this year, it looks undervalued based on a sum-of-parts valuation and could pay a large dividend in 2011. See the pitch selected for CAPS' weekly top stock idea. If you want to follow my weekly picks, you can subscribe to the series' RSS feed or follow us on Twitter.
3. San Juan Basin Royalty Trust (NYSE: SJT )
San Juan Basin Royalty Trust is a trust with a 75% net overriding royalty interest of various oil and gas leaseholds and royalty interests in the San Juan Basin of New Mexico. The trust has a stake in more than 4,000 gross wells (1,173 net wells) with most of the production being natural gas and coal seam gas (a less valuable form of gas than conventional natural gas). The trust pays monthly distributions, which last year summed to an annual yield of 4.3%. The trust has an estimated 10 to 15 years left of useful life, which will be extended if energy prices rise.
My Foolish bottom line
Consider the three stocks above along with the 13 names in a free report from The Motley Fool's expert analysts, "13 High-Yielding Stocks to Buy Today." A senior retail analyst dubbed one of the picks as "the dividend play of a lifetime." Tens of thousands have requested access to this report, and today I invite you to download it at no cost to you. To get instant access to the names of these 13 high-yielders, simply click here -- it's free.
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