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Merry Christmas and Happy New Year!
posted Dec 20 '16 by alex
Merry Christmas and Happy New Year!

Are you ready to celebrate New Year? Music, champagne, gifts… We have a gift for you too! We want to help you with your New Year's resolution. Actually, not to make one, but to maintain it!

If your resolution happen to have a promise to invest in your future and make at least X% on your investments... Well, there are many ways to do it and none of them is particularly easy. But a relatively simple way to get a positive ROI is to invest in stocks, that pay dividends. Especially, if you need to manage your retirement account, with reasonably low trading activity and limited choice of instruments.

Below is the list of stocks we found. All of them pay more than 5% dividend and they do it consistently for the last few years. Some of the companies below qualified as REIT (Real Estate Investment Trust) for federal tax purposes - these companies generally would not be subject to federal income tax on that portion of its income if it distributes at least 90% of its taxable income to its stockholders. Basically, it means that they have to pay dividends if they want to maintain their status.

Here is a list of best dividend stocks we have found so far:

CMRE - Costamare Inc. - 6.9% dividend yield; Price/BVPS: 0.47

CVI - CVR Energy Inc. - 8.5% dividend yield; Price/BVPS: 1.9

DMLP - Dorchester Minerals LP - 6.0% dividend yield; Price/BVPS: 6.7

GAIN - Gladstone Investment Corp. - 8.9% dividend yield; Price/BVPS: 0.98

GMLP - Golar LNG Partners LP - 10.3% dividend yield; Price/BVPS: 2.66

MFA - MFA Financial Inc. - 10.0% dividend yield; Price/BVPS: 0.97

MMLP - Martin Midstream Partners LP - 16.3% dividend yield; Price/BVPS: 1.52

NAT - Nordic American Tankers LTD - 11.0% dividend yield; Price/BVPS: 0.96

NRZ - New Residential Invt Corp. - 11.5% dividend yield; Price/BVPS: 1.32

NYMT - New York Mortgage Trust Inc. - 13.8% dividend yield; Price/BVPS: 1.01

SDLP - Seadrill Partners LLC - 8.9% dividend yield; Price/BVPS: 0.45

SXCP - SunCoke Energy Partners, L.P. - 11.3% dividend yield; Price/BVPS: 1.34

All numbers in a list above provided as of December 10th, 2016.

We included a Price to BVPS (Book Value Per Share) ratio for each stock. A lower Price to BVPS ratio could mean that the stock is undervalued. And there are quite a few with this ratio close to 1 or even below 1!

"Buying stocks below book value can lead to some of the best investments you can make."
- "The Little Book of Value Investing" by Christopher H. Browne

However, keep in mind, that it could also mean that something is fundamentally wrong with the company. As with most ratios, be aware that this varies by industry, so do you homework and carefully examine Stock Analyzer results.

Also note that master limited partnerships (MLPs) have unique risks and considerations that may differ from investments in common stocks. Considered pass-through entities, MLPs may generate unrelated business taxable income (UBTI) that can have tax consequences for retirement accounts and tax-exempt investors. If this is a retirement account and UBTI exceeds certain limits set by the IRS, a Form 990-T may be required to be filed along with a tax payment to the IRS. So be meticulous investing in stocks like DMLP, GMLP, MMLP...

No matter if current year was a good or not very good year for you, 2017 is coming and we wish you the best in the new year! May it bring joy and success to you!

Merry Christmas and Happy New Year!

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