2 offbeat companies with fat dividend yields

Investors may want to think outside the box when looking for companies that have an above average dividend yield and are likely to keep those payouts and increases coming, advises “Get Rich With Dividends” author, Marc Lichtenfeld. “You can still get 3%, 4% on quality companies versus nothing in the bank."

Lichtenfeld is bullish on two offbeat names, consumer products company Tupperware (TUP) and magazine publisher Meredith Corp. (MDP). Both have dividend yields above 3%, higher than the 2.11% yield on the benchmark 10-Year U.S. government bond (^TNX). And also above the S&P 500's (^GSPC) average dividend yield of 2.02%.

Meredith, whose titles include Martha Stewart Living and Shape, may be misunderstood by investors. “It's a magazine publisher. Everyone thinks that's a dying business but they have good digital properties,” says Lichtenfeld. Among them allrecipes.com which is the world’s largest food brand with 1 billion annual visitors, according to the company. Last month Meredith boosted its dividend by 6% lifting the quarterly payout to $0.47 a share, the 22nd consecutive year of increases.

As for Tupperware, the brand may seem a bit dated, but Lichtenfeld believes the maker of plastic storage containers and other kitchen paraphernalia is in a global sweet spot. “Two-thirds of their business comes from emerging markets." He notes there are around 24 million Tupperware parties globally each year. Tupperware is set to report earnings on April 22.

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It’s already been a hot year for dividends. Cash payouts, according to S&P Dow Jones Indices, were a record $45 billion in February. Companies are also stepping up corporate buybacks. Announced plans rose to a record $104 billion last month, according to TrimTabs Investment Research.

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