Nomadamon's Blog : Not Your Father's Dividend Stocks

Have you noticed how when people are asked to name their top dividend stocks they usually mention JNJ, Chevron, Duke Energy, IBM, or Altria? Yeah sure, back in the good ole days of buy and hold for 10 years some of those might have been decent picks. Unless you believed them and picked Ford, GE, AIG, or several others that have taken a beating over the past decade or so.

The new breed includes some higher-risk (and thus, higher reward) stocks that offer growth and income. Now that's what I'm talkin about.

Here are a few that I like right now and have real life positions in:

(PNNT) Pennant Park Investments
PE < 6
Div. > 11% (just raised it in Nov. 2009)
Share price growth > 200% in 12 months.

(RSO) Resource Capital Corp.
85% share price growth past 12 months
Price/Book = 0.78
Yield > 17% (As a REIT, it is not subject to federal corporate income tax to the extent that it distributes 90% of its REIT taxable income.)

(UVE) Universal Insurance Holdings
127% share price growth past 12 months
Yield > 12%
ROE = 34%
45% held by Insiders

These are a few of the modern picks in my Roth IRA. Do you have others I should consider?