High Yield Stocks You Should Discover Now

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• Hi, My name is Aaron and Im with Dividend Stocks
  Research, today were reviewing our recently
  published article

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• High Yield Stocks You Should Discover Now

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• In a minute, Im going to introduce you to a
  fascinating high yield dividend stock that would
  literally crawl up and die if the weather was
  warm all year.

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• But first...
• Is it warm enough for you? Hows your summer
  going?
• Are you deep in the dog days, when the humidity
  refuses to lift, even for a few fresh hours after
  the thunderstorms roll through?

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• We had lightning on the coast a few weeks ago.
• Here on the beaches of Southern California,
  summer thunderstorms are as rare a sighting as a
  mutual fund that manages to outperform the
  market.

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• Did you know that in 2011, the SP 500
  outperformed 84 of all domestic equity mutual
  funds?
• Pretty sad. And over the past few years, the
  funds havent done much better.

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• What about those mutual funds that invest in high
  yield stocks?
• Id stay away. Fees can kill you. Do your own
  research, find your own gems, and dodge the big
  expenses.

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• One place I like to look for good high yield
  stocks is on the SP SmallCap 600.
• Its not exactly a walk on the beach, and youll
  run into a bunch of stocks that dont pay
  dividends, so you need to do some exploring. But
  you can find some very attractive...

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• High Yield Stocks Waiting To Be Discovered

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• You know one of the great things about a bunch of
  the stocks on the SP SmallCap 600?
• They dont get a lot of coverage from Wall Street
  analysts.

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• Theyre buried, and out of the limelight. And
  without the glare of analysts attention, theyre
  often great deals waiting to be discovered.

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• For instance, just 7 analysts follow Group 1
  Automotive GPI.
• Group 1 isnt a good stock if youre looking for
  a high dividend yield right now, but if youre
  looking for dividend growth, you might want to
  check it out.

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• Here are a few more small cap stocks nobody pays
  much attention to.
• Just 3 analysts follow Interval Leisure Group
  Inc. IILG.
• And just 2 analysts keep an eye on Innophos
  Holdings Inc. IPHS.

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So if youre looking for a good deal on high
yield stocks, go where the analysts dont go.
Dive into the small caps. Granted, youll find
some stiffs, and youll find entire industries
where just about every stock is on sale.
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• And thats just where you want to be. Ahead of
  the crowd.
• Kind of like looking ahead to wintry weather in
  August.
• And that brings us to...

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• The Last Stock Youll Think About Buying In the
  Middle Of Summer

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• Youve got to love this ticker... PLOW.
• No, not plowing the fields of a farm, but plowing
  streets, parking lots, and runways filled with
  snow.

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• Thats the business Douglas Dynamics PLOW is in,
  and its one of the high yield stocks that can
  get your attention.

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• If youre a landscaper, or a town or city, and
  you want to buy plows for your trucks, these are
  the guys to see. (They can also help you out
  with a salt spreader.)

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• PLOW pays a 4.37 dividend, it has a dividend
  payout ratio of 63.6, and the P/E ratio
  (Price/Earnings Ratio) is beautiful... less than
  12.
• What is there not to like about Douglas Dynamics?

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Well, a couple of things. A few early warning
signals. Let me show you what to watch out for
so you dont rush into the arms of a stock with a
low P/E and a high yield. The dividend payout
ratio is a bit high, but not spiking in the
danger zone.
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• A major concern? Not yet, but it could be soon.
• Its not exactly one of those dividend payout
  ratio bombs ready to explode, but it does bear
  some watching.

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Income... its slowing down, and clearly it would
be nice to see it growing. When revenue grows,
the dividend can be at risk. But when you look
at a company like PLOW and see that theres been
an ugly quarter, you dont want to overreact.
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• What should you do when youre hunting for top
  dividend paying stocks?
• Check to see if the company jacked up its
  dividend to take the sting off soft earnings.

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• In this case, no. TheDouglas Dynamics dividend
  has stayed the same for the past few years.
  Thats good, in a way.
• Even when it was selling more plows and revenues
  were stronger, PLOW wasnt growing the dividend.
  

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• Probably not a bad thing, and heres why.
• A company needs to stay in good financial health.
  

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And while paying too high a dividend is good for
the health of the investor, at least in the short
term, its usually not very good for the long
term health of the company.
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• So youve got that 4.37 dividend on the table
  and an outfit thats been around for 65 years.
• But check out the stock price...

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• START CONTENT HERE
• Arial 32 pt Bold

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• Im not a big chart guy. Technical analysis
  isnt my cup of tea, but you always want to pull
  out the chart to give the stock price youre
  looking at some context.
• And when you pull out a chart like this one, you
  cant help but cringe.

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• That sharp runup starting the beginning of last
  year... and before that, those 20 plunges, I get
  the shakes when I see this kind of stuff.
• The volatility is scary. And so is the current
  price, even at a P/E ratio of 12.

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• PLOW is a pretty expensive stock. It seems to
  me Douglas Dynamics should be trading between 11
  and 14, not up in the 20s.

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• Comforting as it is to think about snowplows in
  August, by the time the blizzards hit, I figure
  Douglas Dynamics will be trading for a lot less
  than it is today.

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• Pour yourself a glass of lemonade (or something
  more substantial) and head back to the SP
  SmallCap 600 for another look. Find something
  else, because it looks like PLOW is about to
  skid off into the ditch.

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• Look at the stocks like GPI and IILG that the
  Wall Street analysts dont pay much attention to.
• Avoid the pitfalls of a stock like PLOW where
  the yield and the P/E ratio look good...

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• But dig deeper into the snowdrift of data and
  youll find the indicators that look as
  threatening as a Noreaster bearing down on the
  New England coast.

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  com. Sign up for our free dividend reports and
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