Dividend Champs With Yields As High As 14%

By Sol Palha:Our favorite play is Gel (GEL); it sports a quarterly revenue growth of 44%, a strong quarterly earnings growth rate of 276%, a five-year dividend growth rate of 17.74%, a five-year dividend average of 6.60%, has consecutively increased dividends for eight years in a row, has a positive levered free cash flow rate of $81.6 million, and has increased its dividend from 42.75 cents to 44 cents.

By Sol Palha:This is part III of the dividend champ series. In part II we looked at seven stocks with yield as high as 23%. Extreme volatility is propelling more and more investors into dividend yielding investments in contrast to speculative investments.

By Sol Palha:Today, we are going to examine several stocks with positive quarterly revenue growth rates, operating cash flows in excess of $400 million, with yields in excess of three percent, paying dividends for 5 or more years and either have a dividend growth rate in excess of 5 percent or have consecutively increased their dividends for at least four years in a row.

By Sol Palha:We would like to start off by warning investors that Torch Energy Royalty Trust (TRU) is a purely speculative play, and only investors willing to take on extra risk should even consider it. Our favourite play on the list is Mesabi Trust (MSB).

By Sol Palha:In coming up with this list we looked for the following criteria:

By Sol Palha:Three of the plays on this list are speculative in nature and only investors willing to take on extra risk should consider opening a position in them. The said plays are VOC Energy Trust Units of Benef (VOC), Compressco Partners, L.P. (GSJK) and Rhino Resource Partners LP Comm (RNO.

By Sol Palha:The markets are rather overbought, and long term dividend investors would be best served by waiting for a pullback (a strong one) before committing large sums to this market. Our two favorite plays on this list are Senior Housing Properties Trust (SNH) and Southern Copper Corp (SCCO).

By Sol Palha: "The Wright brothers flew right through the smoke screen of impossibility." Charles Kettering We have selected what we believe to be 10 top plays out of the stocks we have reviewed for the week. We review five stocks per article and in each article, we choose our favourite play; almost all the stocks listed below are from our "favourite play list."