What are the Best Stocks for Paying Dividends ?

[wwswimming]

I would start the list off with GE -
http://finance.yahoo.com/q?s=ge

40 cents a share dividend, share price about $16, dividend yield about 2.5% (better than a savings account, though not FDIC insured.)

+ if you managed to pick some up at the March 2009 bottom, you paid about $6 a share, so you have a 6.7% dividend yield.

Obviously a Google search is in order

http://www.google.com/search?hl=en&...vidends&btnG=Google+Search&aq=f&aql=&aqi=&oq=

http://www.money-zine.com/Investing/Stocks/Dividend-Paying-Stocks/
AT&T - 6% (share price is $25+, dividend is $1.50)

http://seekingalpha.com/article/35273-the-top-dividend-paying-etfs-and-stocks
Altria - share price $19+, dividend $1.36, yield ~ 6.8% (yes, they make cigarettes, i think)

http://money.aol.com/investing/top-dividend-paying-stocks
lists 10 stocks, nothing really stands out, at today's share prices.

Anybody else got any solid stocks to add to the list ?

 

[Thump553]

Why is this in P&N?

On point, what you are asking doesn't have a simple answer because you are looking at static information. For example, company XXX's dividend may be 6% now but headed for a cut in the very near future. (Look what happened to nearly every bank paying dividends in the last year). Or company YYY may pay a 5% dividend but the value of its stock is declining at 10% a year.

Both of scenarios I set forth above are very common.

OTOH you can make real money on stocks that don't pay dividends-for example Apple (AAPL). In the past year it's low was $82 and it's high was $215 and presently it's around 200 with two big and almost certainly positive events coming up next week. Way better than you would have done on GE. And if you bought GE in 2008 before the crash you would have paid well over $20 for it. It would take a lot of dividends to make up that loss.

 

[borosp1]

The issue with dividend stocks is that the higher the dividend yield the less chance of price appreciation over time since most of the stocks equity goes to paying dividends. Also the higher the dividend yield of a stock usually means its more risky investment. IE many of the real state REITS pay 11-20% dividend yield. The risk for the real state market to fall further is so great that your return on dividend yield will not offset losses in the average stock price decline.

Dividends are good over time with 'blue chip' companies that will be here for decades. Its a good investment vehicle for individuals who do not plan to sell a stock for many years or are closer to retirement and need consistent income. The younger someone is its much better for asset allocation to have riskier investments that move up and down in price much more than dividend payers. IE the tech stocks like GOOGLE, APPLE, AMAZON all do not pay a dividend, but there price appreciation is much greater than any dividend payer. So one who is more risk tolerant can take a chance on companies that move in price much more as your return will be much higher than dividend payers in the short term.

If your looking for a DIVIDEND payer I suggest looking at a mutual fund like 'ALPINE DYNAMIC DIVIDEND FUND (ADVDX)' which main objective is only to capture dividends. Its currently yielding almost 23%. The issues is that if the market drops it price drops as well but you make up some of the risk with dividend payment every month is which much higher than any individual stock can return.

 

[MotF Bane]

There's a 2010 stock market thread in OT.

 

[Infohawk]

For example, company XXX's dividend may be 6% now but headed for a cut in the very near future. (Look what happened to nearly every bank paying dividends in the last year). Or company YYY may pay a 5% dividend but the value of its stock is declining at 10% a year.

Both of scenarios I set forth above are very common.

Yup. Be very careful chasing dividends. If you're retired, consider "income" index funds...