We all like a good dividend paying stock, but we want to know that the company has the profits and the cash to keep paying their dividend each month or quarter. Since the downturn in the economy, companies have been trying to raise cash to improve their balance sheets and attract investors. These 3 stocks have a high cash to share ratio and all pay a dividend over 7% annually. I’ll talk about the dividend history of these companies and the growth each company is experiencing now.
|Vector Group Ltd.||VGR||10.2||3.67|
|Main Street Capital Corporation||MAIN||9.47||2.82|
|Enbridge Energy Partners, LP||EEP||7.47||1.22|
Vector Group has a annual yield over 10% and a 5 year EPS growth rate of 33%. They have been steadily increasing their dividend over the last 5 years to match their earnings. Vector has over $3 in cash per share making it very attractive to many investors. VGR is currently trending higher in trading, hitting an upslope in mid February of 2010. Vector is a cigarettes manufacturer that sells through many different brands.
Main Street Capital
Main Street Capital has a yield just over 9% and a 5 year EPS growth rate of 20%. Main Street invests in small businesses and equity related investments. MAIN pays its dividend monthly at $.125 which it has been paying since August 2008 when it used to be $.36. They currently have $2.82 in cash per share. MAIN’s stock chart looks pretty solid, as the stock has been climbing recently.
Enbridge Energy Partners
Enbridge Energy has a yield over 7% and a 5 year EPS growth rate of 6%. EEP has a good dividend history. They have been raising the dividend consistently each year, although not by much. Enbridge had a great run from May 09 until peaking out in January of 2010. Since then EEP has declined and held steady. The chart shows some steady resistance at the $50 mark.