Four Big Dividend Stocks That Signal More Upside Ahead
What’s the income investor to do? Major indices sit at all-time highs making the hunt for quality names paying a healthy dividend even harder to find. What if you could find stocks paying more than a four percent dividend, have a history of increasing their yield, and have an attractive chart? Here are a few.
Ever wonder who makes all of those (sometimes annoying) ads that play while you sit in a movie theater waiting for your movie to start? National CineMedia (NASDAQ: NCMI) is the answer.
This small cap name has a dividend of 5.77 percent and is currently up 21 percent off of its lows. Its latest earnings were strong and the chart shows a tight wedge poised to break out. If it breaks out to the upside, the stock could test its October $16.00 highs.
Westar Energy (NYSE: WR) is an electric utility that provides power generation and transmission in Kansas. It has a beta of 0.53 and a dividend of 4.29 percent.
Not only is it a relatively safe stock, the chart has rocketed up to 52 week highs after a small correction in late February. Income investors know that there’s always yield in the utilities space but Westar Energy has growth characteristics too.
Cypress Semiconductor (NASDAQ: CY) is one of the semiconductor names that doesn’t have the mainstream appeal of an Intel (NASDAQ: INTC) or Texas Instruments (NASDAQ: TXN) but who wants Intel right now, anyway?
The company makes everything from touchscreen displays to LED technologies. It pays a 4.18 percent dividend and has increased it more than 13 percent over the past three years.
The chart recently broke out of a base pattern after a downtrend that started in June. The chart looks promising but watch for a near-term pullback based on diminishing volume.
Finally, Dow Chemical (NYSE: DOW) develops materials for use in agriculture, healthcare, solar, consumer products, and more. It pays a 4.03 percent dividend and has increased it 13 percent over the past three years.
The chart tells the story of a name that has a beta of 2.35. From mid-November to the beginning of February it was up 27 percent only to give half of it back. It’s since regained 6 percent of the losses and is testing its 50 DMA. If it breaks through, it’s next major resistance level is six percent higher.
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