Daily Gains Letter

These Two Stocks Under $20.00 Can Boost Your Portfolio Income

By for Daily Gains Letter | Feb 8, 2013

DL_Feb_8_2013_MoeWhile focusing on highly speculative stocks can be lucrative, the risk of owning them can be significant, making a real dent in your portfolio if things turn sour. If you are planning for retirement or simply want to take a safer route than pure speculation, consider dividend paying stocks.

These stocks can provide investors with both income and capital appreciation at the same time. If you hold them long-term, your returns from dividend paying stocks can sometimes far exceed the returns from your speculative bets.

Here are two examples of dividend paying stocks that can provide you with income and capital growth over time. And the best thing about them—they’re under $20.00.

Just Energy Group Inc (NYSE/JE;TSX/JE)

Just Energy is an industry leader in the sale of electricity and gas to commercial and residential users. The company has operations in the U.S. and Canada. Just Energy was formed in 1997, and is based in Mississauga, Canada. (Source: Yahoo! Finance, last accessed February 5, 2013.)

Just Energy is a solid company with a market cap of $1.4 billion. In the second quarter of fiscal 2013, ended September 30, the company reported net income of CDN$23.1 million, with CDN$0.16 earnings per diluted share. ( Source: “2013 Second Quarter Report to Shareholders,” Just Energy Group Inc. web site, September 30, 2012, last accessed February 7, 2013.)


Chart courtesy of www.StockCharts.com


Dividend Income

Just Energy is one of those companies that pay out a monthly dividend to their investors. The company’s forward annual dividend yield stands at 12.7%, for a grand total of $1.26 per stock per year. The company began giving out dividends to its investor in February 2012. Since then, Just Energy hasn’t missed a payment. (Source: Yahoo! Finance, last accessed February 5, 2013.)

Courier Corporation (NYSE/CRRC)

Courier Corporation is involved in the book publishing sector. The company has two core businesses: book manufacturing and publishing. Courier was founded in 1824 and is based in North Chelmsford, Massachusetts. (Source: Yahoo! Finance, last accessed February 5, 2013.)

For the fourth quarter of fiscal 2012, ended on September 29, the company reported net earnings of $5.7 million, with revenues of $77.1 million. For the entire fiscal year of 2012, the company reported $0.77 earnings per share. In fiscal year 2011, the company reported earnings per share of $0.01. (Source: “2012 Annual Report,” Courier Corporation web site, November 30, 2012, last accessed February 7, 2013.)



Chart courtesy of www.StockCharts.com


Dividend Income

Courier is a pioneer when it comes to dividend income. It has been providing its shareholders with dividends since May 1990. Courier gives out quarterly dividends, and in fiscal year 2012, it provided its shareholder with $0.84 per share for the whole year. The company has been consistent for the last 18 quarters, giving its shareholders $0.21 of dividend per share. (Source: Yahoo! Finance, last accessed February 5, 2013.)

When looking for dividend paying stocks, due diligence is important; thoroughly research the company and examine its future prospects. Looking at past dividend payments is just one good measure to determine its consistency—there can be many other factors that can provide an even clearer picture.

With that said, dividend income is a long-term strategy, and it can be beneficial for those who are patient. For those who are looking to make some quick bucks, this strategy may not be the right fit.

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