High dividend yields…
The dream of nearly every investor.
Unfortunately, many investors make the mistake of taking too much risk to pursue such attractive returns.
For that reason, I’ve created a step-by-step guide on how to invest in dividend stocks.
In it, I talk about the three fundamental criterion—business longevity, cashflow stability, and financial discipline—that will help you minimize risk and maximize returns.
But now, I want to shift your attention away from the theory and present you three of the best dividend stocks on the market right now.
Each one offers a high-yield, low-risk opportunity. It’s only a matter of time before they start drawing more widespread attention.
National CineMedia (NYSE: NCMI) – 9.30% Dividend Yield
National CineMedia (NCMI) operates a digital in-theater media network across North America.
Put simply, they show advertisements at movie theaters just before the movie and trailers begin.
You might think Netflix is putting movie theaters out of business, but if you look at the statistics, box office numbers are still rising, albeit slower than in the 90s.
The same holds true for National CineMedia, whose revenues have been growing at an average 2.46% p.a. (per annum) over the last five years. Free cashflow is equally stable, so I don’t see any reason for the company to cut its dividends.
Moreover, current ratio and interest coverage ratio are within acceptable limits, making NCMI’s 9.30% dividend an attractive proposition.
Greek Organisation of Football Prognostics (OTC: GOFPY) – 6.65% Dividend Yield
Greek Organisation of Football Prognostics (GOFPY) is a gambling company that operates lotteries and sports betting.
Here’s where it gets exciting… The company is the exclusive gambling provider in Greece.
You can get a more secure revenue source than that…unless the Greeks suddenly decide to stop betting on sports, and I’m willing to bet (pun intended) that won’t happen.
Especially given that GOFPY’s revenues are growing at an average rate of 13.61% p.a. over the last five years.
Finally, free cashflow, solvency ratios, and liquidity ratios are all in an optimal state, making GOFPY’s 6.65% dividend yield solid as an oak.
Vector Group (NYSE: VGR) – 11.69% Dividend Yield
Vector Group operates two completely unrelated businesses.
On the one hand, the company sells tobacco products under brands Eagle 20’s, Pyramid, Grand Prix, Liggett Select, and Eve. They also sell Zoom electronic cigarettes.
Although the tobacco industry is in decline, Vector’s tobacco revenues are not. These have been increasing each of the last three years.
Tobacco currently accounts for roughly 60% of their revenue. The rest comes from the company’s real estate business.
Vector Group invests in properties all over the world. It also operates the largest residential brokerage company in the New York City area and has additional operations in South Florida, Beverly Hills, Aspen, and Connecticut.
Overall, VGR’s revenues have been growing at an average rate of 3.95% p.a. over the last few years.
With free cashflow rising and a healthy balance sheet, Vector Group’s 11.69% dividend yield is another deal worth taking.