Daily Gains Letter

investment portfolio


A High Dividend Yield Investment You Can Take to the Bank

By for Daily Gains Letter | Feb 15, 2013

DL_Feb_15_2013_JohnA retirement portfolio is more than just a group of stocks. It’s a collection of investments that reflect an investor’s personal preferences, including asset class (stocks, bonds, futures, options, etc.) and sectors (consumer goods, health care, basic materials, etc.).

Investment portfolios will also lean more toward being either income or growth oriented. As a result, an income-oriented investor will select different stocks than a growth-oriented investor will.

That said, most investors like to have a balance of both. While capital appreciation is a great long-term reward, predictable and reliable income through dividends provides an excellent, steady stream of earnings that can be either paid out or reinvested into the respective companies.

One of the joys of dividend-yielding stocks is that they can provide both income and capital appreciation. And if the fundamentally strong dividend-yielding stock you’re investing in has a long track record of providing higher dividends, you don’t need to worry as much about the day-to-day or even month-to-month movements in the market.

People’s United Financial, Inc. (NASDAQ/PBCT) is the holding company for People’s United Bank, a diversified financial services company with $30.0 billion in assets. Founded in 1842, People’s United Bank is a premier, community-based regional bank in the northeast offering commercial and retail banking, as well as wealth management services, through a network of 419 retail locations in Connecticut, New York, Massachusetts, Vermont, New Hampshire, and Maine.

The company offers a generous 5.1% dividend yield, while its recently issued 10-year bond yields 3.5%. A fast-growing bank, People’s United Financial could become an attractive acquisition for a larger bank.

The company announced that fourth-quarter net income increased 47.8% … Read More