Dividend Securities

Attractive Value Securities

A list of securities with above-average dividend yields

1.Alliance Resource Partners LP (ARLP)

CP:$ 75.36

52wk Range: 37.96-76.74

P/E: 8.62

EPS: 8.74

Div/Yield: 3.44 (4.60%)

Summary: ARLP Partnership is a producer and marketer of coal for domestic industrial use. More than 90% of its products are sold to electric utility plants. The current P/E ratio of 10.75 is among the lowest in its industry. The company has a regular dividend policy with an average of 7% in the last 5 years.

These units remain a timely selection for year-ahead relative price performance and feature an excellent yield. The partnership has a solid track record of annual payout increases that dates back nearly a decade. Indeed, ARLP's current yield is well above the Value Line median and is one of the highest among its peers.

2. AT&T (T)

CP: $28.57

52wk Range: 23.78-30.10

1y Target: 31.67

P/E: 8.53

EPS: 3.35

Div/Yield: 1.72 (6.10%)

Summary: One of the world’s largest telecom holding companies and the largest in the United States. The company’s newly introduced U-verse premium TV subscription is helping sell more bundled packages and retain customers. Large business companies are also turning to AT&T for their telecom needs.

AT&T shares, suitable for conservative accounts, offer an attractive dividend yield and should generate solid risk-adjusted returns to 2013-2015.

3.Merck & Co. (MRK)

CP: 32.53

52wk Range: 30.70-39.04

1y Target: 38.59

P/E: 118.30

EPS: .28

Div/Yield: 1.52 (4.60%)

Summary: The drug manufacturer has significant growth possibilities due to the addition of Schering- Plough. Coupled with a strong balance sheet the company has a good outlook for capital appreciation as well as a good-sized dividend.

4. McDonald’s (MCD)

CP: 76.00

52wk Range: 63.25-80.94

1y Target: 85.21

P/E: 16.59

EPS: 4.58

Div/Yield: 2.44 (3.20%)

Summary: MCD recently posted strong third quarter earnings, beating...