9 Enticing Dividend-Paying Stock Picks

Angling for more yield from your portfolio?

(Image credit: Thinkstock)

Angling for more yield from your portfolio? Who isn't in this low-rate environment? Sure, there's risk with stocks in a volatile market, but even if share prices bounce around, the income from dividend-paying stocks is fairly secure.

You don't always need to turn to giants such as AT&T and Altria to earn a decent, reliable yield. Two places to consider beyond these old standbys are first-time dividend payers and small companies. We've identified nine stocks worth watching.

Let's start with first-time dividend payers. Initiating a dividend can mean that a company is going gangbusters and is generating so much extra cash that it makes sense to toss some back to shareholders. But, says Hugh Johnson, an Albany, N.Y., money manager, a dividend launch is not always good news. It could mean that growth has slowed and management has no better idea of what to do with the money than pay it out. Naturally, we selected first-time dividend payersthat are likely to keep hitting it out of the park.

Turning to small companies paying big dividends, these picks can benefit from being too tiny to lure the whale-sized institutions that dominate Wall Street. And that can spell opportunity for individual investors, who aren't buying shares in multimillion-dollar blocks.

*All stock prices and related numbers are as of market close on June 25.

Kathy Kristof
Contributing Editor, Kiplinger's Personal Finance
Kristof, editor of SideHusl.com (opens in new tab), is an award-winning financial journalist, who writes regularly for Kiplinger's Personal Finance and CBS MoneyWatch. She's the author of Investing 101, Taming the Tuition Tiger and Kathy Kristof's Complete Book of Dollars and Sense. But perhaps her biggest claim to fame is that she was once a Jeopardy question: Kathy Kristof replaced what famous personal finance columnist, who died in 1991? Answer: Sylvia Porter.