Finding high dividend stocks to invest in is not an easy thing, as in general, dividends are not always predictable; but, looking at the historys of a high dividend stocks can help in judging whether the most recent dividend is likely to continue. Stocks that deliver a high distribution can make your money work harder than most other investments. In addition, regardless of how the stock performs, the yield produces a nice recurring rate of investment return. Therefore, investing in high dividend stocks can be an option to utilize your money when the market is bleak.
We screened the Telecom Services industry with a series of criteria: mean of last five year dividend yield of more than 5%, current dividend yield of more than 8.89%, the average of the past five year historical EPS growth rate of more than 5%. Then we got two high dividend stocks as follows:
Consolidated Communications Holdings, Inc. (CNSL), together with its subsidiaries, offering a range of telecommunications services to residential and business customers in Illinois, Texas and Pennsylvania.
The company has been paying dividends since 2005. Over the lasts five years, the company on average yielded 9.79%. The Board Of Directors of the company announced its next quarterly dividend of $0.38738 per share, which is payable on August 1, 2012 to shareholders of record as of the close of market on July 13, 2012. The company currently pays a dividend of 8.89%.
Hickory Tech Corp. (HTCO) operates through its two segments Business Sector and Telecom Sector, provides integrated communications services to business and residential customers in the Midwest. The company has been paying dividends since 1990. Over the lasts five years, the company on average yielded 5.69%. The latest quarterly dividend of $0.14 per share will be payable on Jun 5,2012 to the shareholder of record as of May 15, 2012. The company currently pays a dividend of 5.69%.
What is notable, the two high dividend stocks are small cap stocks. CNSL has market value of $522.65 million and HTCO currently command a market value of $132.32 million. Small companies often have no analysts following them, which means investing in the right small caps can be very profitable, as a matter of fact, Russell 2000 index returns 66%, exceeding the 25% of S&P 500. Nevertheless, one needs to be careful when choosing the right high dividend stocks at the right prices, to reduce the holding costs.