5 Huge Dividends That Surged This Monthhttp://www.fool.com/investing/general/2012/08/31/5-huge-dividends-that-surged-this-month.aspx Austin Smith
August 31, 2012
Most dividends can be real snoozers, range trading for years, while investors wait for their reinvested income to be put to work. That’s why investors get excited when they uncover a big yielder that’s actually appreciating in value.
I ran a screen for U.S. traded companies with a market cap over $1 billion that sported a dividend yield over 3%, and then ranked them by their total one-month return.
Here is a look at the results, and a quick reaction to some standouts.
I’m surprised to see Frontier communications leading the pack. They operate in the constantly eroding wireline telecom sector. While known for big dividends, wireline businesses have continued to hurt, as the rise of wireless providers, like Verizon and AT&T, continue to eat their lunch. Frontier cut their dividend earlier this year to save cash, not a good omen for income investors. While they may arguably be the best operator in this space, that’s a low bar to set, and not a sector I’d be comfortable putting my money into.
The Buckle has been a long-time recommendation of mine and, after this run, I’m kicking myself for not taking my own advice. Fortunately, the company is still fairly priced for growth going forward, has a habit of a big one-time special dividend each year, and has a laser-focused and dedicated management team. Known for hiring from within, and taking a more restrained and deliberate approach to expansion than many of their competitors, The Buckle is still a great company whose long-term prospects I remain excited about. However, tread with caution here. The teen retail segment remains weak r