Why Purchase High Dividend Stocks?

By Andre Bradley

 

High dividend stocks are purchase for their ability to pay out high dividends on a regular basis, and don't fluctuate much in stock price. A great way to measure how much "bang for your buck" you are getting from dividends is called dividend yield. Dividend yield is how much cash flow you are getting for each dollar invested in a high dividend stock. The goal is to find good companies with solid earnings that grow their dividends.
 Below are several high dividend stocks that recently rewarded their shareholders:

1. H&Q Health Care Investors (NYSE: HQH) - Dividend Yield: 9.13% - is a diversified closed-end management investment company. The Fund's investment objective is long-term capital appreciation through investment in companies in the health care industry. The Fund invests primarily in securities of public and private companies. The Fund primarily invests in biotechnology, medical devices and pharmaceuticals.
2. Mesabi Trust (NYSE: MSB) - Dividend Yield: 8.07% - is a royalty trust that was created in the state of New York back in 1961 to derive income from the Peter Mitchell Mine near Babbitt, MN which is located near the eastern end of the Mesabi Iron Range.
3. Enerplus Resources Fund (NYSE: ERF) - Dividend Yield: 7.72% - is a high yielding North American oil and gas provider established in 1986. Enerplus has built a balanced and diversified portfolio of producing properties across western Canada and the United States with a focus on large oil and gas resource plays that offer growth potential as well as predictable production and repeatable development opportunities.
4. Frontline Ltd. (NYSE: FRO) - Dividend Yield: 7.68% - engages in the ownership and operation of oil tankers and oil/bulk/ore (OBO) carriers. It primarily transports crude oil, as well as raw materials, such as coal and iron ore.
5. Gladstone Commercial Corporation (NASDAQ: GLAD) - Dividend Yield: 7.58% - is a real estate investment trust that focuses on investing in and owning triple-net leased industrial and commercial real estate properties of small and medium-sized private United States businesses.
6. Cedar Fair (NYSE: FUN) - Dividend Yield: 6.84% - is one of the largest regional amusement resort operators in the world. The Company owns and operates 11 amusement parks, six outdoor water parks, one indoor water park and five hotels. Its parks are located in Ohio, California, North Carolina, South Carolina, Virginia, Pennsylvania, Minnesota, Missouri, Michigan, and Toronto, Ontario. Cedar Fair also operates the Gilroy Gardens Family Theme Park in California under a management contract.
7. Telecom Corporation of New Zealand (NYSE: NZT) - Dividend Yield: 6.62% - is a large supplier of telecommunications and information, communication and technology (ICT) services in New Zealand and Australia. Telecom provides a range of telecommunications and ICT products and services, including local, national, international and value-added telephone services, mobile services, data, broadband and Internet services, information technology (IT) consulting, implementation and procurement, equipment sales and installation services. Telecom is a participant in the New Zealand and Australian communications and information technology industries.

I expect high dividend stocks to continue increasing in value, with corrections along the way, with today's low interest rate environment. Picking the right high dividend stock to invest in will be the hardest part of your investment decision. Make sure to consult your investment advisor before purchasing any high dividend stocks.

Andre Bradley is a contributing writer to the website http://StockAdvice101.com. Looking for stock advice, stock market tips, and stock market strategies? Look no further, visit are site and discover for free the proven secrets to building a fortune using stocks.

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