Navios Maritime Partners L.P. (NYSE:NMM)
A part of Navios Maritime Holdings, NMP specializes is shipping bulk goods from producers to the places those resources – such as iron ore, coal and grains – can be refined into value-added goods. Another Greek firm, so the same warning applies here as above: Political instability can provide a real headache for investors. Make sure you have the stomach for that sort of thing before investing.
Still, this is another stock with an operating margin of 46% last year (even higher in Q4). There’s a lot to like, here. Since late 2008, the stock has grown from $3.36 to $13.61 so that’s a win for holders. Toss in that the firm has grown its dividend five times over that span to a yield of 13.01% and you might have something there. Invest, be cautious, but it’s a good thing.
Windstream Corporation (NASDAQ:WIN)
A more mainstream company that most serious investors should have heard of, I found that this one still flew under the radar of most of my clients. Windstream Corporation (NASDAQ:WIN) provides telecom services inside the U.S. as well as providing broadband and other communications to rural consumers. It’s an interesting market for them to be in.
The firm posted a 19% operating margin its last fiscal year and a 15% margin in Q3 of last year, so there’s money being made. Combine that with a dividend yield of 11.45% and a low stock price (about $8.73 while I write) and it looks like you could do well, here. The stock has been either flat or trending slightly downward on fears that it is in too deep on landlines instead of mobile telecom, but there’s still some value here.
Memorial Production Partners LP (NASDAQ:MEMP)
A new stock, MEMP was formed by a parent, Memorial Resource, to try to own and exploit oil and natural gas resources in the U.S. and elsewhere. The stock only came into existence in late 2011, so there’s not a long track record here. It’s also been busy making acquisitions of proven resources in Southern California and Texas from other, more established providers.
The stock is all over the place, honestly. It’s generally been around $18 per share but it’s been as high as $20.50 and as low as $15.98. Still, I don’t find that too wide a spread for a firm that’s both in start-up acquisition mode and is paying a dividend yield of 10.99%. I’d rather have this than Facebook Inc (NASDAQ:FB). At least I know where this firm plans to make its money.
Dividends are, to most investors, a good thing. Combining a stock’s potential for growth with a proven record of a cash return – which you can keep or reinvest at your discretion – should be a steady way forward for a buy-and-hold investor–which is what I hope you all are. Stick with good, solid stocks that pay dividends and you’re building the basis of a solid, enhanced portfolio.
Good luck!
The article Lesser Known Stocks With Quality Dividends originally appeared on Fool.com and is written by Nate Wooley.
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