I’m going to buy another tranche of Intel common stock to the sheets this morning. It’s still a tiny position for us and I want to build it up a bit, for reasons laid out below.
You can buy Treasuries right now and get less than 1% interest on your money. You can buy CDs and maybe get a little bit more than that if you’re lucky. Savings and checking accounts don’t pay enough to mention if anything at all.
Or, you could buy some of the Revolution Investing portfolio stocks and get yourself some decent yield from companies that are creating and/or growing in revolutionary markets and therefore give you additional potential upside in their stock price. Of course, there’s also downside stock price risk when you buy any stock. But think that through — even with Treasuries right now, I expect that there’s much more potential principal downside as rates rise and Treasury prices fall over the next few years (and/or decades) than could possibly be justified by a 1% or so yield.
So here are the five Revolution Investing portfolio stocks that pay the highest dividends, in order of dividend yield.
|Name||Symbol||Dividend & Yield|
Intel’s actively in the midst of investing tens of billions of dollars in mobile/tablet/wearable and other secular growth industries and if they catch any traction in those marketplaces in the next few years, there’s going to be big upside in both the stock price and the dividend they pay out. In the meantime, you’re making nearly 4x as much interest in INTC as you’d make in a Treasury, and I think INTC’s safer on the downside price risk anyway. Certainly Intel’s potential to triple over the next decade gives you much more potential upside than Treasuries can.
FutureFuel is a much smaller and much younger and much riskier stock than Intel is. FutureFuel’s earnings are still somewhat dependent upon Republican/Democrat Regime energy subsidies (read: scams) but the company’s got some recurring revenue streams in place with existing long-term contracts and the nearly 3% yield ain’t shabby.
Apple iPads are the Xmas season’s hottest sellers and each iPad represents hundreds or thousands of dollars in future revenue from apps, entertainment, music, and other services that people then consumer on those iPads through the Apple eco-system. The yield here as dropped in correlation with the rising stock price of late, but I expect higher dividend payments ahead and that next year’s dividend yield from Apple will easily top 4% based on current prices, meaning a $5 quarterly dividend or so by the end of next year, up from about $3 this year.
Sandisk is dominating a huge growth market of flash storage and the company’s margins are expanding over time, which is exactly what we’ve been expecting. Like Apple, this company’s recent booming stock price means a smaller yield for now, but I expect higher dividend payments over the next few years. And higher stock prices over the next few years too.
Lindsay has been disappointing from a stock price standpoint for the last few months, though it’s still up about 30% from our initial entry point. I continue to like the company’s positioning in the clean-water-scarcity business. That is, more efficient use of water is what Lindsay does best and with ever more demand for ever less clean water on the planet, this is a long-term, multi-decade growth story if management can deliver. The dividend is less than 1% and I don’t think we should expect much higher dividend yield here over the next couple years as the company focuses on growth.