Out Fox The $treet

Find it interesting that certain stocks appear to have capped upside based on the dividend yield.  Intel (INTC)  is such a stock when the yield hits the recent 2.4% levels. The stock might rally further to reach the recent highs, but the time to buy Intel is when the dividend yield tops 3.0%.  Read the full article on Seeking Alpha.  More  commentary  on WhoTrades . Disclosure: No position. See the  disclaimer  page for more details.  

This article is a continuation of a monthly series highlighting the top net payout yield (NPY) stocks that was started back in June, 2012 (see article ) and explained in August, 2012 (see article ). The series highlights the best stocks for the upcoming month. Please review the original articles for more information on the NPY concept. September Returns Below are two charts highlighting the monthly returns of the top 10 stocks from September (see list here ). Due to limitations with YCharts, the chart was broken into the Top 5 and Next 5 lists. Read the full article at Seeking Alpha. Disclosure: Long AMP, CTL, DTV, KSS, MSI, NLY, T. Please review the disclaimer page for more details. 

This article is a continuation of a monthly series highlighting the top net payout yield stocks ( NPY ) that was started back in June, 2012 (see article ) and explained in August, 2012 (see article ). The series highlights the best stocks for the upcoming month. Please review the original articles for more information on the net payout yield concept. August Returns Below are two charts highlighting the monthly returns of the top-10 stocks from August (see list here ). Due to limitations with YCharts, the chart was broken into the Top 5 and Next 5 lists. Read the full article at Seeking Alpha. Disclosure: Long AMP, CTL, DTV, KSS, MSI, NLY, T. Please read the full disclaimer page for more details. 

When last writing about Prospect Capital Corporation (PSEC) , the stock traded right above Net Asset Value (NAV) with fears of another capital raise. After reporting Q4 results last week, management calmed the fears of another capital raise due to strong liquidity. The dilemma remains on whether to invest now and collect the high monthly dividends or wait for a capital raise that might never happen. Prospect Capital is a leading provider of flexible private debt and equity capital to sponsor-owned and non-sponsor-owned middle market companies in the United States and Canada. It trades as a closed-end investment company that has elected to be treated as a business development company (BDC) under the Investment Company Act of 1940. The stock continues to yield nearly 12% after possibly the smallest monthly dividend increases in the market. The company continues to raise the monthly distribution by a fraction of a cent. Read the full article at Seeking Alpha. Disclosure: Long AC...

Over the last few years, ConocoPhillips (NYSE: COP ) was a huge buyer of its own stock. Unfortunately for investors the company has suddenly stopped buying the stock over the last two quarters. Should investors hold onto the stock if the company isn’t buying any more? After the spin-off of the refining business, Phillips 66 , last year, the company is now a leading independent oil and gas producer. The stock more » Disclosure: Long COP. Please review the disclaimer page for more details. 

After a year of weak stock returns and strong cash flow generation, natural resource mining stocks have joined the high yielding asset class. In the old days, natural resource stocks didn’t focus on paying dividends. Now investors can find a solid selection of high yielding resource stocks that yield in excess of the 2% offered by the 10-year treasury. The following high yielding stocks include two limited partnerships that more » Disclosure: Long FCX. Please review the disclaimer page for more details. 

Incredible to see any ratios matching the 2008 levels, but as Treasury Yields have plunged to record lows this shouldn't be much of a surprise. Considering the stock market remains considerably above the March 2009 lows, the ratio of the S&P 500 dividend yield to the 10-year Treasury Yield shouldn't be this high. Companies continue to raise dividends and no signs of a crisis exist outside a few banks and countries in Europe. Why all the panic? The news from Greece and even Spain shouldn't be shocking by now. American banks are all much more comfortably capitalized and prepared for a crisis. Maybe the bond market is correct as usual, but this level of fear is clearly off the charts again. Last time though it came from a near collapse. This time it is just the fear of the collapse that has pushed the ratio up. Below courtesy of J ack Hough's SmartMoney.com blog : Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

Nothing like taking a financially strong sector combined with fears of cutbacks to provide for some exciting yields. With major government budget cutbacks expected in the US, the defense sector went through a few rough quarters in 2011. Investors feared the worse. At the end of the day though, the companies remain strong and according to a Bloomberg report, most of the top dividend yielding stocks in the Capital Goods sector belong to the defense sector. Read the full article at Seeking Alpha. Disclosure: Long LMT and RTN. Please read the disclaimer page for more details. 

On Wall Street it appears that a good thing has to always end in a bubble as investors follow the herd. With interest rates on government debt so low, naturally investors finally began flocking into high dividend-paying stocks in the 2nd half of 2011. It only makes sense to grab a 4% yielding large cap when the 10-year Treasury pays a sub 2% rate. What doesn't make sense though is that investors have begun flocking to dividend-paying stocks with reckless abandon. The thought process is apparently void of any concept that capital appreciation or at least stabilization is so crucial in that 4% dividend paying off. Read the full article on Seeking Alpha. Disclosure: No positions. Please review the disclaimer page for more details. 

After about 14 months of running a Net Payout Yields Model on Covestor, I'm still stunned how few people understand the concept or even incorporate it into investing. Net Payout Yields are the combination of the ever popular dividend yield and the always controversial net stock buyback yield. Or another way, the yield a company pays out to shareholders. No preference is given to whether the yield is obtained via dividends or buybacks. It seems that most investors are in love with the dividend paying stocks, but hardly anybody can get behind stock buybacks. Oddly though, very few investors take advantage of the combination. Read the full article at Seeking Alpha.  Disclosure: Long DTV, LMT, TRV, LO, WLP. Please read the disclaimer page for more details. 

In the last 45 years, the market has never seen the dividend yield of stocks even approach the 10 yr Treasury yield. Though this chart doesn't show it, the last time the dividend yield exceeded the bond yield was 1958. Whats even more incredible is that dividends aren't nearly as popular over the last 10 years. The Net Payout Yield would drastically exceed the bond yield now due to huge buybacks. This is definitely not the time to abandon stocks for low yielding bonds. Its exactly the time to buy some aggresive small caps or Net Payout Yield stocks if you want less risk.