20 New Dividend Stocks

Owens-Illinois (OI)
Market value:
$2.9 billion
Dividend yield: 1.1%
First regular dividend: 2019
Owens-Illinois (OI, $19.02) isn’t the most glamorous of companies. In fact, it’s about as boring as they come. But it’s one of those companies whose products you’re likely to come across regularly.

Owens-Illinois makes glass beer bottles.

That’s not all it makes, of course. O-I makes glass wine, liquor, juice and soft-drink bottles, as well as various other glass packaging products. But that’s really it in a nutshell. Owens-Illinois is a bottle company.

Owens-Illinois has been publicly traded since 1991, but it only initiated its dividend this year. In January, the company kicked off its dividend history with a 5-cents-per-share payout.

You probably shouldn’t expect life-changing stock returns out of a company like Owens-Illinois. As we’ve established, it’s not exactly an exciting company. But it might be worth watching as a dividend stock if management follows up with major hikes in the coming years.

Signature Bank (SBNY)
Market value: $6.8 billion
Dividend yield: 1.8%
First regular dividend: 2018

Signature Bank (SBNY, $124.03) is a regional commercial bank with 30 private client offices throughout the New York metropolitan area. Last year, the bank also expanded to the West Coast, opening a flagship office in San Francisco.

In a financial services world in which bigger is generally perceived as better, Signature Bank has carved out for itself a profitable niche, targeting a smaller but wealthier clientele of business owners and senior managers.

Signature Bank has been in business since 2001 and publicly traded since 2004.

The bank initiated its dividend in July 2018 with a 56-cents-per-share payout, which works out to a dividend yield of 1.8%. It only pays out 12% of its profits as dividends, too, making future dividend growth easily achievable and highly probable.

Realogy Holdings (RLGY)
Market value: $1.3 billion
Dividend yield: 3.1%
First regular dividend: 2016

A lot of work goes on behind the scenes to buy or sell a house, and if you’ve had to go through that process recently, it’s likely you or your counterparty used Realogy Holdings (RLGY, $11.79) at some stage of the process.

Realogy provides an assortment of real estate and relocation services through its four segments: Real Estate Franchise Services (RFG), Company Owned Real Estate Brokerage Services (NRT), Relocation Services (Cartus), and Title and Settlement Services (TRG). The company operates under the Century 21, Coldwell Banker, Coldwell Banker Commercial, ERA, Sotheby’s International Realty, and Better Homes and Gardens Real Estate brand names.

Realogy has been a publicly traded company since 2012 and initiated a dividend in 2016 at 9 cents per share, where it remains today.

Realogy yields a very respectable 3.1%. Its profits are somewhat cyclical, based on the ebb and flow of the residential real estate market. But a 33% payout ratio gives the company enough room to produce meaningful dividend growth in the years ahead, particularly when the housing market picks up.

Ladder Capital (LADR)
Market value: $2.0 billion
Dividend yield: 8.1%
First regular dividend: 2015

Real estate investment trusts (REITs) should be familiar to income investors as they tend to be some of the highest-yielding stocks available in the public markets. Congress created the REIT structure with certain perks to encourage investment in real estate. The biggest is the tax break; REITs pay no federal income tax so long as they distribute at least 90% of their net income to shareholders as dividend.

One new addition to the REIT ranks is Ladder Capital (LADR, $16.83), a hybrid REIT that invests in both brick-and-mortar properties and paper assets, such as mortgages and related securities. Ladder also makes loans backed by real estate.

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Ladder’s property portfolio is a diversified mix of commercial and residential properties, including student housing, industrial buildings, office buildings, shopping centers and others.

Ladder went public in 2014 and became a REIT in early 2015. It paid its first 25-cent dividend in April of that year and has since grown the payout to 34 cents per share. At current prices, the REIT yields an impressive 8.1%.

STORE Capital (STOR)
Market value: $7.4 billion
Dividend yield: 4.0%
First regular dividend: 2015

REITs focusing on the retail sector have had a rocky ride over the past several years. As Amazon.com and other online retailers continue to pull more shopping out of the malls and into the internet, many investors have been left wondering whether retail real estate will soon be obsolete.

STORE Capital (STOR, $33.45) has a sensible strategy to combat the Amazon threat: focus on services.

Unless Mr. Bezos plans to send barbers, dentists or baristas to your home or office, service businesses such as hair salons, dental offices or coffee shops should be “Amazon proof.” And STORE has concentrated its portfolio there; roughly two-thirds of STORE’s tenants are in service industries as opposed to goods-producing industries.

STORE began trading late in 2014 and paid its first 11.39-cent dividend in January 2015 – though that was a “monthly” catch-up payment of sorts. STORE’s first quarterly payout in April 2015 was 25 cents, and the dividend hikes have only continued, putting the current payout at 33 cents.

Equinix (EQIX)
Market value: $37.4 billion
Dividend yield: 2.2%
First regular dividend: 2015

We’ll round out this list with one final REIT: data center operator Equinix (EQIX, $446.18).

Data has been called “the new oil,” and with good reason. Just as energy from fossil fuels was critical to getting the Industrial Revolution off the ground, data is what fuels the Information Economy. And we’re not just talking about social media or cloud operators. Large companies, banks and even governments are using more and more data by the day. Data center operators such as Equinix are a way to play this trend.

Equinix has more than 200 data centers in 52 cities spread across 24 countries on five continents. Suffice it to say that Equinix is an important part of the infrastructure connecting the world.

Equinix made a large special dividend of $7.57 per share in late 2014 and paid out its first regular quarterly dividend of $1.69 in March 2015. The company has since grown the dividend 46% to $2.46.

EQIX is not the highest yielding of REITs, with a yield of just 2.2%. But if you believe data is the critical commodity of the future, Equinix should benefit – and continue growing its payout as a result.

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