3 Double-Threat Dividend Stocks to Buy

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The search for income-producing stocks to buy is still one of the most difficult tasks for investors today. The fact that Wall Street has spotted an opportunity to pile up commissions and fees by whipping up new products to provide income, which are often confusing and could actually be detrimental to your financial health, definitely doesn’t help.

Investors would be better served using Portfolio Grader to find higher yielding stocks that have superior fundamentals and provide the potential for capital appreciation as well. To further refine your income selections to the very best stocks to buy, you probably want to narrow your universe to those companies that have been able to grow their dividend payouts and might be expected to continue to do so in the future.

Here are three stocks to buy on account of their high dividends and expected growth:

Alliance Resource Partners (ARLP)

One such company right now is a company in the coal business. That’s right. Coal, that nasty dirty unloved fuel source can help you meet your income needs. Alliance Resource Partners (ARLP) is a master limited partnership with ten mining complexes in Illinois, Indiana, Kentucky, Maryland and West Virginia.

While other coal producers are struggling, ARLP just posted results that set new records for coal sales, revenues and net income. ARLP also raised its dividend 8.5% to continue a streak of increases that has averaged about 15% annually over the past five years.

Alliance Resource’s current dividend yield is 5.09% Alliance’s outstanding performance caused Portfolio Grader to upgrade the stock to an “A” back in May, and ARLP shares are still a “strong buy” at the current price.

Vector Group (VGR)

Vector Group (VGR) is also in a business that is pretty out of favor with the investing public. Vector makes cigarettes under a bunch of different brands, many of which are exempt from payments under the settlement action because of their very small market shares.

Vector also owns 60% of the fourth largest real estate firm in the country. Douglass Eilman has a network more than 5,000 agents in over 70 offices in the greater New York City area, Florida and Southern California. VGR stock yields 6.7%, and the payout has gone up about 6% per year on average for the past five years.

Portfolio Grader has ranked VGR stock as an “A” since March and it is still a “strong buy” based on its strong fundamentals.

CenturyLink (CTL)

Telecommunications is a more popular business, and CenturyLink (CTL) is a stock that could also help meet your income needs. CenturyLink offers the usual mix of communication services including land lines, wireless broadband internet and television to consumer and business customers and also builds fiber optic networks for government agencies and other customers.

CTL stock currently yields a healthy 5.4%, and management has increased the payout by 40% annually for the last five years. Portfolio Grader upgraded CenturyLink stock to an “A” last month and is also a “strong buy” for growth and income investors.

Finding a reliable source of investment income is a daunting task, but Portfolio Grader can help you find stocks to buy that have high yields and strong growth prospects.

Louis Navellier is a renowned growth investor. He is the editor of five investing newsletters: Blue Chip GrowthEmerging GrowthUltimate GrowthFamily Trust and Platinum Growth. His most popular service, Blue Chip Growth, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.


Article printed from InvestorPlace Media, https://investorplace.com/2014/09/3-dividend-stocks-to-buy-centurylink-vector/.

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