While investors who are looking for outsized returns bet on companies with big growth potential, investors who are looking for steady returns and want a little more safety tend to favor stocks with less short-term growth potential, but a longer track record of solid performance. Dividend stocks are another favorite target for investors as they provide a steady stream of cash into your portfolio.
We looked for companies with a dividend of at least five percent that are in established industries, many of these may not be the first company you would think of in their respective industry, but they are all solid companies. None of these stocks is going to double overnight, but they are all steady dividend payers.
Chart courtesy stockcharts.com
Aircastle owns a fleet of aircraft that it then leases to airlines and freight carriers around the world. The company owns 144 planes, which are leased to 65 customers in 36 countries. The company has no long-term debt expiring until 2017 and only 18 planes set to come off lease in 2013. Low interest rates and continued expansion of the economy should help keep the company flying high. Earnings per share have grown in two of the last five years, but the company's earnings in 2011 were the highest they've been since before the financial crisis in 2007. The company also has a 5.2% dividend yield.