Mercury General is one of the companies that can help improve your portfolio income through large dividend payouts. Great dividend payers create a safe bet to increase investors’ portfolio value as payouts provide steady income and cushion against market risks. Dividends can be underrated but they form a large part of investment returns, playing an important role in compounding returns in the long run. Today I will share with you my best paying dividend shares you should be considering for your portfolio.
Mercury General Corporation (NYSE:MCY)
Mercury General Corporation, together with its subsidiaries, engages in writing personal automobile insurance in the United States. Formed in 1960, and currently lead by Gabriel Tirador, the company provides employment to 4,200 people and with the company’s market capitalisation at USD $2.37B, we can put it in the mid-cap stocks category.
MCY has an alluring dividend yield of 5.87% and the company currently pays out 95.07% of its profits as dividends . MCY’s last dividend payment was $2.5, up from it’s payment 10 years ago of $2.08. During this period, the company has not missed a dividend payment – as you would expect from a company increasing their dividend. Dig deeper into Mercury General here.
AmTrust Financial Services, Inc. (NASDAQ:AFSI)
AmTrust Financial Services, Inc., through its subsidiaries, underwrites and provides property and casualty insurance in the United States and internationally. Started in 1998, and run by CEO Barry Zyskind, the company size now stands at 8,000 people and with the market cap of USD $2.49B, it falls under the mid-cap stocks category.
AFSI has a large dividend yield of 5.23% and their payout ratio stands at -163.15% , with the expected payout in three years being 40.86%. In the last 10 years, shareholders would have been happy to see the company increase its dividend from $0.07 to $0.68. They have been consistent too, not missing a payment during this 10 year period. AmTrust Financial Services has sustained a positive annual earnings growth over the past five years of 6.16%. Continue research on AmTrust Financial Services here.
Northwestern Corporation (NYSE:NWE)
NorthWestern Corporation, doing business as NorthWestern Energy, provides electricity and natural gas to residential, commercial, and industrial customers in Montana, South Dakota, and Nebraska, the United States. Formed in 1923, and run by CEO Robert Rowe, the company size now stands at 1,552 people and with the market cap of USD $2.51B, it falls under the mid-cap stocks category.
NWE has an alluring dividend yield of 4.13% and pays out 63.20% of its profit as dividends , with analysts expecting a 66.89% payout in three years. NWE’s DPS have risen to $2.1 from $1.32 over a 10 year period. It should comfort existing and potential future shareholders to know that NWE hasn’t missed a payment during this time. When we compare Northwestern’s PE ratio with its industry, the company appears favorable. The US Integrated Utilities industry’s average ratio of 19.4 is above that of Northwestern’s (15.5). More on Northwestern here.
For more solid dividend payers to add to your portfolio, you can use our free platform to explore our interactive list of top dividend payers.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.