9 High-Yield Stocks to Consider in Lieu of Bonds
Its shares currently yield 7.06% and have returned 32% annually on average over the past decade. Sure, the metals market, along with Southern Copper's shares, are on a constant roller-coaster ride, but given that this company had $1.4 billion in cash versus only $2.7 billion in debt at the end of 2011, it's in a lot better financial shape than many European countries right now.
Two other interesting picks are from Canada, a nation that has weathered the recession in better shape than the U.S. due to the fiscal conservatism of its banking system.
One, Rogers Communications(RCI) , with a yield of 4.21%, is Canada's largest wireless voice and data communications services provider as well as its biggest cable television provider, this in a country that is several years behind the U.S. in terms of cell phone and cable TV penetration rates. So it has plenty of room for growth.
Rogers' bonds get investment-grade ratings and last year it repurchased about 31 million shares under a buyback plan that is still in force this year.
Another winner from up north is a young real estate investment trust (REIT), Riocan Real Estate Investment(RIOCF) , Canada's biggest retail REIT. It owns and manages shopping centers.
It's in a great position for growth as the struggling Sears Canada(SEARF) is expected to sell off some of its plum store locations, just as U.S. retailers, such as mass market retailer Target (TGT) and upscale clothier Nordstrom(JWN) , are keen to enter Canadian urban markets.
Here are summaries of nine, high-quality companies' stocks with current dividend yields over 4% and positive long-term prospects arranged in inverse order of dividend yield:
9. Rogers Communications(RCI)
Company profile: Rogers, with a market value of $18 billion, is Canada's largest wireless voice and data communications services provider and its cable and telecom division is Canada's largest cable television provider, along with offering high-speed Internet access.
Dividend Yield: 4.21%
Investor takeaway: Its shares are down 11% this year but have a 15-year, average annual return of 19%. Analysts give its shares three "buy" ratings, five "buy/holds," 10 "holds," and one "weak hold," according to a survey of analysts by S&P. Analysts estimate it will earn $3.13 per share this year and $3.30 next year, or 5% growth.