Dividend stocks such as Banco Latinoamericano de Comercio Exterior and Safety Insurance Group can help diversify the constant stream of cash flows generated by your portfolio. These stocks are a safe bet to increase your portfolio value as they provide both steady income and cushion against market risks. A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. If you’re a buy and hold investor, these healthy dividend stocks can generously contribute to your monthly portfolio income.
Banco Latinoamericano de Comercio Exterior, S.A (NYSE:BLX)
Banco Latinoamericano de Comercio Exterior, S.A., a multinational bank, primarily engages in the financing of foreign trade in Latin America and the Caribbean. Established in 1977, and currently run by Rubens Amaral, the company employs 209 people and with the market cap of USD $1.11B, it falls under the small-cap group.
BLX has a great dividend yield of 5.38% and the company currently pays out 73.83% of its profits as dividends . While there’s been some fluctuation in the yield over the last 10 years, the dividends per share have increased in this time. Over the next three years, analysts predict double digit earnings growth for Banco Latinoamericano de Comercio Exterior of 53.61%. Dig deeper into Banco Latinoamericano de Comercio Exterior here.
Safety Insurance Group, Inc. (NASDAQ:SAFT)
Safety Insurance Group, Inc. provides private passenger and commercial automobile insurance in Massachusetts, New Hampshire, and Maine, the United States. Founded in 1979, and now led by CEO George Murphy, the company currently employs 623 people and with the company’s market capitalisation at USD $1.18B, we can put it in the small-cap stocks category.
SAFT has an alluring dividend yield of 4.11% and their current payout ratio is 72.64% , with the expected payout in three years being 73.12%. SAFT’s last dividend payment was US$3.20, up from it’s payment 10 years ago of US$1.60. They have been consistent too, not missing a payment during this 10 year period. More on Safety Insurance Group here.
Schweitzer-Mauduit International, Inc. (NYSE:SWM)
Schweitzer-Mauduit International, Inc., together with its subsidiaries, provides engineered solutions and advanced materials for various industries worldwide. Started in 1995, and now run by Jeffrey Kramer, the company currently employs 3,600 people and has a market cap of USD $1.21B, putting it in the small-cap group.
SWM has a great dividend yield of 4.40% and pays 151.14% of it’s earnings as dividends . SWM’s dividends have seen an increase over the past 10 years, with payments increasing from US$0.30 to US$1.72 in that time. They have been reliable as well, ensuring that shareholders haven’t missed a payment during this 10 year period. The company also looks promising for it’s future growth, with analysts expecting an impressive doubling of earnings per share over the next year. Continue research on Schweitzer-Mauduit International here.
For more solid dividend paying companies to add to your portfolio, explore this interactive list of top dividend payers. Or create your own list by filtering companies based on fundamentals such as intrinsic discount, health score and future outlook using this free stock screener.
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.