Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



The Latest on the Highest Dividend Yields in the Market

Welcome to the eighth issue of The Big Dividend Report!

For new readers, in this series my aim is to check under the hood of the biggest dividends in the market and to keep you updated on the latest and greatest. We will limit ourselves to the biggest 20 dividend yields coming from companies with at least $2 billion in market cap.

In our first go-round, we looked at the payout ratio, the most fundamental metric to check for dividend health. In our second report, we looked at recent price movements in this volatile market. In our third report, we looked at recent news for the mortgage REIT industry. Our fourth report highlighted possible opportunities in foreign telecom. The fifth report focused on master limited partnerships and Nokia (NYSE: NOK  ) news. For the sixth report, we had some telecom and mREIT updates. And for the seventh report, we previewed earnings season.

The wait is over. It's officially earnings season now, so we'll be getting a lot of useful information in the coming weeks. Last week, Nokia reported earnings, so we'll take a look at that shortly. But first, let's take a look at where our cohort of 20 companies stand today. Usually I rank the group in order of highest yield (after all, that's what this report is all about), but for earnings season let's look at the list chronologically, based on estimated earnings-release dates.



Dividend Yield

Earnings Date (Est.)

Nokia Information Technology 7.3% Reported!
Annaly Capital (NYSE: NLY  ) Real Estate 15% 10/24-10/26
American Capital Agency (Nasdaq: AGNC  ) Real Estate 20.2% 10/25
Chimera (NYSE: CIM  ) Real Estate 18% 10/25
Hatteras Financial (NYSE: HTS  ) Real Estate 15.9% 10/26
MFA Financial (NYSE: MFA  ) Real Estate 15.5% 10/31-11/5
Cheniere Energy Partners (AMEX: CQP  ) Energy 11.2% 10/31-11/10
Terra Nitrogen Company Materials 9.5% 11/1-11/3
CenturyLink Telecommunication Services 8.2% 11/2
Portugal Telecom Telecommunication Services 13% 11/3
Frontier Communications Telecommunication Services 12.2% 11/3
Southern Copper Materials 8.9% 11/3-11/8
Pengrowth Energy Corporation Energy 8.1% 11/4
Windstream Telecommunication Services 8.3% 11/4
Inergy Energy 10.4% 11/4-11/14
Cellcom Israel Telecommunication Services 9.9% 11/8
Hospitality Properties Trust Real Estate 7.6% 11/9
Veolia Environnement Utilities 9.6% 11/10
BP Prudhoe Bay Royalty Trust Energy 7.2% 11/16-11/26
YPF Energy 9.3% No good estimate*

Sources: Yahoo! Finance, S&P Capital IQ, and
*YPF's last earnings data was given in a Form 6-K in August.

Last week, Nokia was the first of these big yielders to report earnings. There were some good points here. Nokia beat analyst estimates. Its feature phone (as opposed to smartphone) shipments increased by 8% over last year's quarter, to a whopping 89.8 million units. And although its smartphone shipments were down, this could be expected after it announced in February that it's ditching its Symbian operating system for Microsoft's Windows (due out this quarter). It still ranks third with 16.8 million units sold last quarter, close behind No. 2 Apple (17.1 million) and No. 1 Samsung (over 20 million).

With Nokia's 7.3% dividend yield, investors may be tempted here. But be careful. Let's not forget that Nokia posted a loss this quarter. And every big win by Apple's iPhone and Google's Android is pretty much a loss for Nokia, whose domination of the feature-phone market may be an obsolete skill set. A lot rides on its partnership with Microsoft.

For those looking for a value play, past earnings and free cash flows over the past five years make Nokia seem cheap if you believe it can fight on and keep paying hefty dividends. I think better values are out there (note that I'm long Apple).

Moving on to the next reporters, we should start to see earnings reports in the mortgage REIT space trickling in this week. Annaly, American Capital Agency, Chimera, and Hatteras are all on deck. Our last mortgage REIT, MFA Financial, is estimated to report next week. That week will have a lot of news as half of our companies could report, with Cheniere Energy Partners as the earliest possible reporter. Get a preview of the expected earnings season for mortgage REITs,

For some in-depth dividend stock analysis right now, check out our free report "Secure Your Future With 11 Rock-Solid Dividend Stocks." Although no investment is surefire, the stocks in this report were picked to require a lot less guessing about future prospects. Get your copy today -- it's free!

Anand Chokkavelu owns shares of Frontier Communications and Apple. You can follow his thoughts on Twitter. The Motley Fool owns shares of Annaly Capital Management, Apple, Google, Microsoft, and Chimera Investment. Motley Fool newsletter services have recommended buying shares of Apple, Microsoft, and Google and creating bull call spread positions in Microsoft and Apple. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (8)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1575878, ~/Articles/ArticleHandler.aspx, 10/23/2016 12:12:59 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 4:00 PM
AGNC $19.48 Down +0.00 +0.00%
American Capital A… CAPS Rating: ***
CIM $15.40 Up +0.10 +0.65%
Chimera Investment CAPS Rating: ***
CQP $28.37 Down -1.19 -4.03%
Cheniere Energy Pa… CAPS Rating: ***
HTS.DL $0.00 Down +0.00 +0.00%
Hatteras Financial CAPS Rating: ****
MFA $7.29 Up +0.02 +0.28%
MFA Financial CAPS Rating: *****
NLY $10.08 Down -0.05 -0.49%
Annaly Capital Man… CAPS Rating: ****
NOK $4.92 Down -0.08 -1.60%
Nokia CAPS Rating: **