Find High Dividend Yields in Unusual Places

Most investors think to look in the obvious places for dividends: large-cap
stocks and REITs. However, there are some great dividend plays in stocks that
often are left out of typical screens. Each dividend stock has something unusual
about it, but what isnt unusual about these stocks is their dividends are
consistent and generous. Martin Mainstream Partners L.P. Martin Mainstream
Partners L.P. (NASDAQ: MMLP ) is a pipeline limited partnership of the type Ive
written about before . Energy is a great investment, but so is energy
infrastructure. Energy is a necessity, but moving it is just as important, so
wherever you find an energy investment, an infrastructure play will be close
behind. Martin Mainstream Partners gathers, stores and transports natural gas
for independent oil and gas producers. MMLP landed a big contract to help clean
up the Deepwater Horizon debacle. The company has constantly increasing
dividends, and MMLP today pays a fantastic 9.3% yield. Martin Mainstream
Partners looks to increase net income 30% in 2012 over 2011 and trades at 20
times 2012 earnings. Great Northern Iron Ore Properties Ive looked far and wide
to find a royalty trust I like enough to purchase. A royalty trust acts as the
owner of mineral rights to wells, mines and similar properties, and exists only
to pass income generated from the sale of the assets to shareholders. Just like
an REIT, 90% of net income must pass to shareholders in the form of
distributions or dividends. Great Northern Iron Ore Properties (NYSE: GNI ) owns
almost 70,000 acres of mineral leases in Minnesota. Driven by steel demand, the
trust has been pulling ore out of the ground like it was going out of style.
GNIs yield at the moment is fantastic 14.7%. There are two caveats, however.
First, the trust dissolves in 2015, so the party wont last forever. At that
time, GNI shareholders will get a distribution equal to the liquidated value of
the trust. Second, Great Northerns dividend can fluctuate because it is
dependent on steel demand and commodity prices. Nevertheless, the value of the
trust is not under question. Its just a question of how much of a dividend gets
paid each year. There is no sign of decreasing payouts at this time.
Knightsbridge Tankers Limited Looking for a real odd duck? Check out
Knightsbridge Tankers Limited (NASDAQ: VLCCF ). The company engages in the
seaborne transportation of crude oil and dry bulk cargoes worldwide.
Knightsbridge Tankers customers include oil companies, tanker companies, dry
bulk companies, petroleum products traders, government agencies and other
entities. This is a very profitable operation with net margins of 33%. Thats
enough to make anyone salivate. VLCCF stock floats shareholders a 12.8% yield.
Theres some question as to whether the dividend is sustainable, but the
underlying business remains solid. Trading at only 13 times next years estimates
also gives a reasonable margin of error should business slow. As always, youll
want to dig deeply into each companys SEC filings to learn all you can about the
businesses. That way you can determine for yourself how sustainable any given
dividend is. As of this writing, Lawrence Meyers did not hold a position in any
of the aforementioned stocks.