High yield dividend growth stock candidates to boost your income

As I wrote in my article about saving cash through commission free ETFs I will be soon selling a portion of my RWX holding and buying dividend growth stocks in my ROTH IRA account. I will have my money ready to invest and a question arises what stock to buy.

 
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In my hunt for high yield stocks I reviewed my existing holdings and only three stocks could be considered for a buy: Lorillard, KMP, and PPL. All other stocks I hold are too expensive for a purchase and I am not willing to pay such elevated price.

Should I accumulate in existing stocks or open a new position?

If I decide to open a new position, what stocks to choose and will I be able to find a stock which would pay me a better dividend than the existing stocks?

 
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To evaluate which stock can give me a better deal per buck, let’s take a look at basic metrics of the existing stocks:
 

Symbol Price Div.
Yield
Div.
Rate
Div.
Growth
# of
Years
P/E
LO $49.26 4.50% $2.20 19.29% 4 15
KMP $80.20 6.60% $5.26 6.24% 16 22
PPL $30.29 4.90% $1.47 1.87% 13 12

 

Are there stocks out there which would provide me with a better yield, growth and safety than those I already own? Would you accumulate or open a new position? If you remember my previous posts I desperately need to boost my income now with higher yielding stocks and reinvest the income into higher growth stocks. But are there stocks which can provide both?

 
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I went on and checked MLPs if any of the candidates can provide a better yield, growth and low P/E.

I found the following candidates:

 

Symbol Price Div.
Yield
Div.
Rate
Div.
Growth
# of
Years
P/E
SEP $42.13 4.80% $2.01 8.63% 5 26
BPL $69.96 6.00% $4.23 4.30% 17 26
EXLP $29.58 7.00% $2.08 3.68% 5 23
DPM $49.60 5.70% $2.82 3.65% 6 22
TLP $42.68 6.00% $2.59 2.69% 7 23
EPB $34.54 7.30% $2.51 20.09% 4 16
TCAP $28.65 7.50% $2.16 8.62% 1 12
PNNT $11.28 9.90% $1.12 4.04% 5 11

 

These are the stocks I would be interested in if I decide to open a new position. The most appealing seem to be SEP, BPL, EPB and TCAP with great yields, growth and dividend history. I would continue evaluating those stocks further and do some reading as I have time until I will be able to free up money from RWX commission free ETF for a new purchase.

 
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Should I open a new position in one of those high yielding growth stocks or should I stay with the existing one? What do you think?
 







12 Responses to “High yield dividend growth stock candidates to boost your income”

  1. […] @ Investing into Stocks – Hello Suckers! writes High yield dividend growth stock candidates to boost your income – Which high yield dividend stocks can provide you with a solid growth and decent dividend […]

  2. Moneycone says:

    Why not a bit of both?

    • Martin says:

      Right now I will not have enough cash to buy a bit of both so I must choose only one this time and next time buy the other. Splitting the purchase would make me spending too little money and the fee will be too high.

  3. I’ve looked at LO before and really liked it. I’m basically building up my wish list for the inevitable market collapse, do you think it will hit by the end of the year?

    • Martin says:

      Although I am cautious and increasing my cash, I do not think we will see a collapse or correction any soon. The reason is very low interest rates (and FED mentioned several times that they will keep them at zero as long as possible and maybe well into 2015) then bonds will earn little to now yield. The only alternative to bonds will be stocks, so I think, people will still be investing into stocks and pushing the market up.

  4. […] A List of High Dividend Yield Growth Stocks at Hello Suckers […]

  5. CI says:

    I like LO here, actually anything under $50 seems reasonable to me. Like you mentioned, potential menthol bans are concerning. I personally don’t think it will happen either. It is legal to purchase marijuana in my state making a menthol ban hard to imagine. I think I might to see what the dividend boost will be this year before pulling the trigger.

    PPL is the running for a new utility position. I like the company, even with the crappy dividend growth, but have been thinking about adding a water utility for some extra diversification.

    KMP looks good too, nice picks!

    • Martin says:

      CI, are you from Colorado? Me too. That’s actually a great analogy I didn’t think of. If marihuana is OK then why not menthol. Good point. I still am leaning towards adding a new position rather than investing in existing positions, but will see when it comes to purchasing. Thanks for stopping by!

  6. Dennis says:

    Companies that distribute dividends at a higher yield can be found by sorting on Business Development Companies (BDC), Master Limited Partnerships (MLP), and Real Estate Investment Trusts (REIT). There are several different REITS but the two main varieties are those backed by paper (mortgage backed which are dependent on interest rates and foreclosures) and those back by brick and mortar buildings which are dependent on occupancy rates and rent increases.

    If you decide to go this route, I suggest that monthly dividend distributors will allow you to compound you dividends faster. For a list of monthly dividend payers, please see the following article simply titled Monthly Dividend Payers at this site – http://dennismccain.weebly.com/2/post/2013/12/mon

    • Martin says:

      Denis, I am already exposed heavily to REITs, so I am not interested in increasing positions in REITs although it is appealing to me. with BDC I couldn’t find stocks with a dividend record of increasing dividends at least for 1 year, ideally 4 to 5 years or more. Almost all of them slashed dividends or kept them same. I’ll try searching again, but MLPs showed a few which were increasing dividends and are not overpriced.
      Thanks for stopping by.

  7. Fast Weekly says:

    Greetings Martin,

    I agree there aren’t many undervalued companies out there right now. Everyone I know seems to be jumping into the various Kinder Morgans right now too. Here’s to a few more days like yesterday!

    -Bryan

    • Martin says:

      Bryan, I agree. Weird on one hand I do not like the price drops as it lowers my account value, on the other hand I like it because it eases the stock overheated prices. Thanks for stopping by!

  8. Hi Martin,

    LO and KMP are great companies!

    But in Germany, you have big problems with LPs or MLPs because of the tax!

    I think the dividend yield from PPL is great, but the dividend growth is slowly.

    For German investors, I would recommend LO.

    A lot of shares of LO ;-)

    regards

    D-S

    • Martin says:

      How is it taxed differently in Germany? Here it is also taxed as partnership distribution and thus as a regular income. I am a bit hesitant increasing position in LO due to uncertainty of EPA menthol ban. Although I tend to believe it is just a talk and EPA won’t afford to ban menthol cigs, I decided to actually reduce my exposure in LO, although I love the company. I am not reducing it by selling, but not by investing in it. I currently hold 14% of my portfolio in LO and want to get it down to 3% or less. So LO is not an option for me now.