Mmm
Who has a list of the top paying dividend paying stocks? Any thoughts on which of them have the best growth potential over the long haul?
Steven Allen Pebble Beach CA
2002 NSX GPW w/CTSC, suspension and headers
1977 450SL Gold/1998 500 SL Dark Blue
Founder of EmerchantsGroup.com
Mmm
Russ - Patent Attorney
1995 NSX-T CTSC Red/Black
Usually the best paying dividends come from companies WITHOUT a lot of growth potential (hence why they pay large dividends instead of reinvesting in their business efforts)... And there are tons of lists available...
Current: 2012 MAZDASPEED3 & 2004 Honda Pilot
Former: 1993 NSX
Starting a new NSX build...You never really leave!
Google Finance has a stock screener that will let you sort by dividends paid. I just look for companies that show a pattern if increased dividends, especially through 2008-2009. beyond that, it is hard to suggest specific companies because there are so many factors to consider. What is your attitude toward risk? How important is liquidity? A couple you might look at are BPT and FRO.
Broad topic but I have existing positions in KMP, LINE, and PWE mainly for their dividends. LINE and PWE take more scrutiny to analyze, KMP is fairly safe and straight forward. There are lots of good Canadian dividend paying corps that were previously MLP's. BP used to be a good dividend stock and will be again sooner than later. I am building a position in CVX as it comes down (want to buy in the 60's and 70's) primarily for its yield.
There are many other stocks that as the market comes down will have a decent yield again, YUM is one example. I've owned that stock for many years; I think it yields about 3% now but it was 5% when I purchased it and still has solid growth prospects overseas.
Personally I think there are better opportunities for income outside of stocks until the market retreats. I've been buying NUV, NXP, DSM, and EIM muni bond funds after the Meredith Whitney story and again after this recent slide. You can get 5-5.5% after tax* yield on the non leveraged funds and 7-8% on the leveraged funds. The leveraged funds are the real stunners and is a fantastic way to take advantage of artificially low federal funds rate - the bond managers can use leverage at essentially no cost to the shareholders.
Preferred shares are also great income sources. I'd suggest sticking with JPM and WFC unless you like to walk out on the risk curve. If you are, you will be able to buy C and BAC at massive* discounts to par before this crisis is over. Just over the past couple days those preferred shares had 20%+ intraday down moves. Remember that in general any preferred share will trade at par given normal interest rates. Right now the good ones like JPM-PI and WFC-PJ trade over par due to low rates. Long story short that means if you buy BML-PQ at 15$ when BAC is tanking, if the bank is able to keep itself together, you'll receive a 10-12% yield AND you will get the move back to $25 from $15 a share. I traded about 10m preferred shares on the NYSE as a securities trader; please inquire if you questions about them.
Last edited by sahtt; 08-13-2011 at 10:49.
Honda.Acura.Lexus.Nicky Hayden LE RC51.AP2 S2k.
"Blind is the world
Few are those who clearly see"
Dhammapada v. 174
Technology companies usually has much better growth potential than traditional industries. Some of the examples are:
1. INTC - The #1 semiconductor company in the world is also stepping into the smart phone market which will be high growth in the years to come.
2. XLNX - One of the best semiconductor companies making FPGA chips that's used in a wide range of industries.
3. QCOM - Making chips for the mobile phone market which will enjoy good growth in the coming years as 4G and smart phones are spreading worldwide.
Some other ones to consider are:
BRCM, AMAT, EMC, etc.
It's arguably not a dividend in the classical sense as it's not a corporation, it's technically a distribution of income. See the excerpt below for specifics. I prefer PWE over SDT but I haven't researched SDT.
"On July 22, 2011 SDT stated that its distribution for the period from January 1, 2011 through May 31, 2011 will be $1.068461 per unit. The distribution is expected to be distributed on or before August 30, 2011 to holders of record as of the close of business on August 15, 2011. It should be stated that SDT will withhold $1.0 million from the first distribution to establish a cash reserve available for Trust's administrative expenses. So this initial distribution makes for a yield of 8.8%."
Last edited by sahtt; 08-15-2011 at 14:59.
Honda.Acura.Lexus.Nicky Hayden LE RC51.AP2 S2k.
"Blind is the world
Few are those who clearly see"
Dhammapada v. 174
A year or so ago i started watching the etf DVY (and another i forget) as i think we all thought that this area would provide at least some safety, if not outright good gains. It hasn't done all that well. I believe that in this quant/program/black pool world we now live in, when the big players sense some sort of pullback, they use these div stocks to park in. I've made some in stocks like PM this way. So these stocks can get driven up too high, and then of course they get crushed as soon as the monthly "risk-on" comes back. The long run. I no longer believe in the market for the long run. And i've studied for the last ten years to play the market as my retirment career. About the only money i've been able to make the last year has been in gold and silver. Go figure. I believe we will be seeing major market problems eventually. Mini flash crashes are still occurring. When does mini go to maxi? Too much trading off the books, too much money at play. Leverage is till WAY too high. CDS's are still well with us. And GS has taught the entire world how to game the market. Investing is all about risk vs reward. IMO you have to wait and hope for big downturns to preserve your capital.
RE: SDT. I wouldn't post it if it wasn't true. The stock may be paying a dividend prorated back to 1/1 but it didn't IPO for several months later. There also will be 2 more distributions between now and the end of the year. The stock will hold up as long as oil and nat gas prices hold up. They have also sold forward contracts on the next 3 years of oil and gas at an equivocal of 105 per bbl or so. The principal is up about 20% since I purchased it and just paid me very nicely. PER and VOC are also worth looking into.
For those that like preferred shares, GJM is the old GMAC preferred that is now Ally bank. Trading at a 10% discount to it maturity/call value and 8.5% dividend. If it's called you get about 10% growth and in the mean time collect 1/4ly checks.
That's all the free advice today.
Here is more research from seekingalpha.
http://seekingalpha.com/article/2825...s?source=yahoo
Last edited by kookoo4nsx; 08-31-2011 at 16:31.
1993 Red/Black NSX. Angus Turbo. 7.5 PSI
400 RWHP 1/4 mile 12.39 at 118mph!
Yellow Media (YLO.TO) on the Toronto exchange.
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