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Zacks Investment Ideas feature highlights: Realty Income, First Niagara Financial Group, Intel and Buckeye Partners LP

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September 14, 2011 | Comment(s): 0
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O | FNFG | INTC | BPL

For Immediate Release

Chicago, IL – September 14, 2011 – Today, Zacks Investment Ideas feature highlights Features: Realty Income Corporation (O - Snapshot Report), First Niagara Financial Group, Inc. (FNFG - Snapshot Report), Intel Corporation (INTC - Analyst Report) and Buckeye Partners LP (BPL - Analyst Report).

4 Stocks Yielding More Than 4%

For investors willing to ride out the short-term volatility and take a long-term approach, stocks look relatively attractive compared with bonds. The yield on the 10-year Treasury note is hovering around 1.9%, well below its 50-year average of 6.8%, and below the average of the S&P 500.

Dividend-paying companies with strong cash flows and rising earnings often raise their payouts too, unlike a bond which usually comes with a fixed coupon payment.

I've compiled a list of 4 stocks with both growth and income characteristics. These companies have a yield greater than 4%, a history of raising their dividends and are expected to grow earnings in 2011 and 2012.

Realty Income Corporation (O - Snapshot Report) is a real estate investment trust (REIT) that owns mostly freestanding, single-tenant retail properties. It owns around 2,500 properties in 49 states and has a market cap of $4.3 billion.

Realty Income Corporation has paid a remarkable 493 consecutive monthly dividends throughout its 42-year history and actually increased its dividend during the Great Recession. It currently yields a juicy 5.2%.

First Niagara Financial Group, Inc. (FNFG - Snapshot Report) isn't your typical bank stock. It has bucked the trends plaguing the industry over the last few years through excellent credit quality and consistent loan growth. It operates branches across Upstate New York, Pennsylvania, Connecticut and Massachusetts.

The company pays a dividend that yields an impressive 6.3%. Unlike many banks during the financial crisis, First Niagara did not cut its dividend and has actually raised it twice in the last year. Dating back to 2000, the company has increased its dividend at a compound annual growth rate of 17.5%:

Intel Corporation (INTC - Analyst Report) is the largest chip maker in the world. The company has seen a steady rise in consensus earnings estimates over the last few months as it has delivered 10 consecutive positive earnings surprises.

Intel generates very strong free cash flow and has been rewarding its shareholders through aggressive dividend hikes. Since 2000, the company has raised its dividend at an average annual rate of 24.5%. It currently yields a solid 4.3%.

Buckeye Partners LP (BPL - Analyst Report) receives petroleum products from refineries, connecting pipelines and marine terminals, and transports those products to other locations. It is a master limited partnership (MLP) and is headquartered in Houston, Texas.

BPL pays a distribution that yields a stellar 6.5%. It has steadily increased its payout over the last decade, in spite of the volatility in oil prices:

Conclusion

Investors looking for long-term total returns from the stock market need to consider dividends along with capital appreciation, as dividends historically have made up a large chunk of overall returns.

These 4 stocks offer both growth and income and should provide strong total returns over the long haul.

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Read the full analyst report on O

Read the full analyst report on FNFG

Read the full analyst report on INTC

Read the full analyst report on BPL

 

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