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CenturyLink

Share Price: $28.00

Market Capitalization: $15.4 billion

Dividend Yield: 7.7%

P/E: 12

CTL) purchased Savvis, a provider of data storage services. But in its third-quarter earnings report this year, the company revealed that it is exploring alternative options for its 59 data centers--most of which were acquired with the Savvis deal--including possibly selling the facilities. (The data centers provide physical storage for network servers.) Morningstar analyst Michael Hodel writes that because revenues from those data centers have been declining, a sale could push the fair value of the stock higher." data-reactid="40">CenturyLink's stock has yo-yoed in recent years as the telecom giant tries to transition from the declining landline phone business to Internet and data services. The path forward has not always been clear. For example, in 2011, CenturyLink (CTL) purchased Savvis, a provider of data storage services. But in its third-quarter earnings report this year, the company revealed that it is exploring alternative options for its 59 data centers--most of which were acquired with the Savvis deal--including possibly selling the facilities. (The data centers provide physical storage for network servers.) Morningstar analyst Michael Hodel writes that because revenues from those data centers have been declining, a sale could push the fair value of the stock higher.

CenturyLink execs are instead focusing on growth areas. For example, sales of high bandwidth data services to business (which allows companies to store and retrieve large amounts of data, among other things) jumped 6.7% during the third quarter from the previous year. Management also plans to cut operating expenses by as much as $125 million in the second half of 2015.

CenturyLink pays a quarterly dividend of $0.54 per share, creating a sizable yield based on today's stock price. Even so, analysts estimate that if the company holds the dividend steady, CenturyLink will use only 66% of its free cash flow next year to make the payout. The stock has surged 16% from a low of $24.11 in early October.

SEE ALSO: Great Tech Stocks Paying Big Dividends

ConocoPhillips

Share Price: $51.97

Market Capitalization: $64.2 billion

Dividend Yield: 5.7%

P/E: Not meaningful

Low oil prices have caused ConocoPhillips's profits to collapse, so the fact that the stock trades at 84 times estimated 2016 earnings isn't particularly meaningful. And as long as oil prices remain low, profits are not likely to zoom any time soon.

COP), one of the world's largest energy producers, has been ruthlessly slashing costs. For 2015, executives forecast that spending on oil and gas exploration, as well as drilling, will fall by 40% to $10.2 billion and that costs to run the business will drop by 15% to $8.2 billion. At the same time, Conoco is ramping up production by 3% to 4% for the year." data-reactid="50">Still, Conoco (COP), one of the world's largest energy producers, has been ruthlessly slashing costs. For 2015, executives forecast that spending on oil and gas exploration, as well as drilling, will fall by 40% to $10.2 billion and that costs to run the business will drop by 15% to $8.2 billion. At the same time, Conoco is ramping up production by 3% to 4% for the year.

Management's goal is to reduce costs and increase production enough so that by 2017, the company no longer has to borrow money to pay its dividend. Analysts at S&P Capital IQ believe Conoco will hit that target as early as next year and be one of the few exploration-and-production firms to do so. The bosses are feeling confident, too. In July, the company increased the quarterly dividend by a penny a share, to $0.74. The stock has sunk 40% since July 2014, but it has rallied 23% last August.

SEE ALSO: Best Big Oil Stocks for Safe Dividends

Las Vegas Sands

Share Price: $46.03

Market Capitalization: $36.6 billion

Dividend Yield: 5.6%

P/E: 18

LVS). That's because Sands is a major operator in the southern province of Macau, the hub of China's gaming industry. During the third quarter, sales there made up 56% of Sands's revenues, and analysts expect the company's earnings to fall 27%, to $2.60 per share, this year." data-reactid="58">An anticorruption crackdown in China, along with the country's weakening economy, has depressed the results of hotel and casino operator Las Vegas Sands (LVS). That's because Sands is a major operator in the southern province of Macau, the hub of China's gaming industry. During the third quarter, sales there made up 56% of Sands's revenues, and analysts expect the company's earnings to fall 27%, to $2.60 per share, this year.

Falling profits may not make for an enticing investment case, but reasons for optimism exist. Sands has focused on the mass gaming market in Macau, rather than the VIP players who are at the center of the anticorruption efforts. The company is also growing and not just with casinos. In Macau, Sands expects to open a St. Regis-branded hotel by the end of this year and the Parisian Macao, which will include a hotel, casino and retail mall, in 2016. In addition, Sands operates in Bethlehem, Pa., Las Vegas and Singapore. So despite the hit to high-end gambling in China, revenues should improve by 1.6% to $12 billion in 2016, and by 8% to $13 billion in 2017, analysts estimate.

Meanwhile, Sands's quarterly dividend is rising. Starting in March, the company will pay out $0.72 per share, up from $0.65. Analysts project that Sands will use 83% of its free cash flow to fund the payout. Although the stock has rallied 26% since October 1, boosted by news from China's gaming bureau that Macau revenues fell slightly less in October than in previous months, it is still down 47% from its most-recent high, reached in March 2014.

Mattel

Share Price: $23.46

Market Capitalization: $8.0 billion

Dividend Yield: 6.5%

P/E: 17

Despite owning some of the world's most-recognizable brands, including Barbie, Fisher-Price and Hot Wheels, Mattel's earnings fell in 2014 and are expected to decline again this year. At the root of the problem are the toymaker's slow foray into digital toys, increased competition and a strong dollar (40% of the firm's sales come from overseas). And next year, Mattel will lose its lucrative license to sell dolls based on Disney Princess stories and the popular movie Frozen.

But Mattel (MAT) is working to turn things around. In April, the company named its chairman, Christopher Sinclair, as chief executive officer, and in September it announced other changes in the executive suite. Mattel partnered with Google Cardboard this year to bring virtual-reality capabilities to the iconic View-Master toy, and it expanded its licensing agreement with Nickelodeon. It is also making an aggressive push into developing nations, such as China and Russia. During the third quarter, for example, sales in the Asia Pacific region, which includes China, climbed 17% from the same period a year earlier, not counting the impact of currency swings. Analysts believe profits will rebound next year by 12%, to $1.39 per share.

Based on the current quarterly dividend rate of $0.38 per share, analysts estimate that Mattel will use 93% of its free cash flow next year to cover the payout. That means you shouldn't expect a dividend hike anytime soon, but the company likely will generate enough money to keep the payout secure.

The World's Greatest Stocks" data-reactid="69">SEE ALSO: The World's Greatest Stocks

Vodafone Group

Share Price: $33.58

Market Capitalization: $89.1 billion

Dividend Yield: 5.3%

P/E: 51

The final 5% yielder hails from across the pond. But although Vodafone (VOD) calls the U.K. home, the telecom giant is ambitiously expanding its operations throughout Europe, as well as in Africa, the Middle East and Asia Pacific. A reviving Europe should help boost revenues, which analysts expect will fall 8.5% to $62.2 billion for the fiscal year that ends in March but start to rise (albeit slowly) in the March 2017 fiscal year, to $62.5 billion.

S&P Capital IQ analyst David Holt says Vodafone will benefit as more wireless users upgrade to the 4G network, which Vodafone has been investing heavily in (as of the end of September, the company reported that 80% of Europe had 4G coverage). Faster growth in Africa, the Middle East and Asia will also be a boost. From April to September, sales in those regions expanded by 6.7%.

Vodafone pays dividends twice a year, which over the past 12 months have added up to $1.78 per share. And although some foreign dividends are subject to taxes overseas, that is not the case for U.S. investors holding British stocks. Holt expects the stock, which trades in the U.S. as an American depositary receipt, to hit $40 in 12 months.

SEE ALSO: 7 Great Stocks That Keep Raising Dividends


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Source : https://finance.yahoo.com/news/7-promising-dividend-stocks-yielding-135001155.html

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