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Dow Dividend Stocks – Top 5 Covered Calls

Friday, September 3rd, 2010

Maybe you want to buy blue chip Dow dividend stocks, but you don’t have much faith in price appreciation, given the market’s performance in 2010 thus far.  Selling covered calls often allows you to lock in a much higher yield than the current dividend yield of most dividend paying stocks.

We screened for the highest at the money covered call trades for the Dow 30, and came up with yields ranging from 8.54% to 10.17% for CAT, GE, BA, MSFT, and INTC. (Full names in table below.)  Pretty nice yields, especially when you consider that the annual yields for these 5 stocks range from just 2.18% to 3.20%.  Given that these option trades are all 6 to 8 month trades, their annualized yields are even higher, as you can see below:

DowCovCalls-9-1-10

(We’ve listed these trades this week in our Covered Calls Table, which gives you more specifics.)

Here’s a Performance table which lists each stock’s Year-to-Date, 2nd Quarter, and 1-Year price performance:

Dow5-Perf.2010thru9-1

This group’s Industrials far outperformed the Techs in a declining market YTD.  The overall Tech sector also lagged Industrials over the past year, with Industrials up 18.3% and Tech up only 9.8%.  Year-to-date, Tech is down -2.9%, and Industrials are up 3.1%.

As most value investors will tell you, lagging sectors can often be a good place to look for bargains.  The 2 Tech firms in this group, Intel, (INTC), and Microsoft, (MSFT) both have PEG ratios below 1, a statistic which is generally recognized as indicating that a stock may be undervalued.

Dow5PEGS-9-1-10

As with any strategy, there are pros and cons you should consider when selling covered calls.

Pros:

  1. Immediate Cash Inflow – Instead of waiting each quarter to collect dividends, when you sell a covered call, you’ll receive the call bid premium money into your account within 3 days from making the sale, often even the same day, depending upon your broker.  Of course, you’ll also keep collecting the dividends on the underlying shares.
  2. Superior Yield – As you can see from the table, these particular call yields are 3 to 4+ times the dividend yields.  This strategy allows you to transform a modest yield into a superior one.
  3. Downside Protection – The call premium $ you receive lowers your break-even cost, giving you more downside protection.
  4. You Know The Trading Range Before Making The Trade – This strategy tells you your exact upside profit potential, and your downside break-even, before you trade, as opposed to buying a stock and trying to determine what your upside potential will be.
  5. The Odds Are With You – It’s been proven that 3 out of 4 options expire worthless. When you’re an option seller, time is on your side, as opposed to the options buyer, who must not only guess the stock’s ultimate direction and approximate price, but must do it before expiration.

Cons:

  1. Limited Rally Participation – Once you sell a covered call, you’re obligated to deliver the underlying shares at your sold call’s strike price if they get assigned, (sold) away from you, no matter how high the stock goes. So, if you think there’s going to be a big rally, then you may not want to sell covered calls.
  2. Higher Entry Costs – You must own 100 shares of the underlying stock for every covered call that you sell.  Therefore, covered call sellers have a greater initial outlay than call options buyers.
  3. Assignment Risk – Selling covered calls against a stock puts you in jeopardy of having your shares sold away from you.  You have to weigh many factors, such as the dividend yield today, and potential dividend growth, and possible price appreciation.  However, if you think that the market is going to be range-bound, or bearish, then the covered call strategy will give you some added downside protection.

Deciding whether or not to sell covered call options comes down to many issues, such as, your risk profile and your market outlook.  If you want to capture some cash yields immediately, and not wait for the market to decide its direction, then this strategy may be right for you.

Disclosure: Author is long shares of INTC, and short INTC calls.

Disclaimer: This article is written for informational purposes only, and isn’t intended as investment advice.

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3 Dividend Stocks With Low PEG Ratios and High Put Option Yields

Saturday, August 28th, 2010

Our latest screen for dividend paying stocks with low next-year PEG and 5-year PEG ratios, competitive management ratios, and conservative debt levels, has turned up 3 new dividend stocks with high put options yields: Autoliv (ALV), Gol Intelligent Airlines (GOL), and Illinois Tool Works (ILT).  We’ve added ITW to the Industrials section of our High Dividend Stocks by Sectors tables this week.

Here are Dividend Yield, Management, Debt, and Profit Margin metrics for these 3 firms:

ALV-Mgt.

(Note: Although GOL’s Debt/equity ratio is over 1, it’s much lower than its Airline peers’ average of 2.37.)

This Valuation table lists both Next-year PEG and 5-year PEG ratios:

ALV-PEG

Here are selected Cash-Secured Put Option Yields:

ALV-OPTIONS

We’ve added all 3 of these dividend stocks to our Cash Secured Puts table this week, where more details are listed. As you can see, the cash secured put option yields far outstrip the dividend yield for these stocks.

Company Profiles:

Autoliv (ALV): Sweden-based Autoliv enjoys a large share of the Automotive safety products market- airbags, seat belts, and safety electronics. This niche leads to more money because consumers demand safety equipment and automakers can charge higher prices for it. Autoliv has demonstrated technological leadership throughout its history: It introduced side-impact airbags, owns 7% of all automotive safety patents, and spends around 6% of sales on research and development.

Side-impact airbags are the fastest-growing product line in the market, and Autoliv has a 40% market share.

Expansion in the global auto market keeps demand high for Autoliv’s products. The global average of safety content per vehicle is $260, but this amount varies considerably in emerging markets. For example, China’s safety content per vehicle is just over $200 while India’s is only about $70. Consequently, Autoliv can expand in its core business significantly.  (Source: Morningstar)

Q2 2010 revenue for the three months ending July 17th was up 7.2%, slightly ahead of the average $1.41 billion estimate, yielding an EPS of $1.16, well above the average $1.03 estimate.

ALV raised its 2010 profit outlook to a range of $3.70 to $3.80/share, up from a prior forecast of $3.34 to $3.54/share. The company cited both improved performance as well as “significant” share repurchases as reasons for the improved outlook.  Analysts have been forecasting only $3.58/share in profit.

The firm purchased 3.4 million shares of its stock for $168 million during the quarter, about half the amount of shares repurchased in Q1.

Gol Intelligent Airlines (GOL): GOL and the airline industry should be huge beneficiaries of the massive infrastructure upgrade that is likely to occur during the coming decade, as the Brazilian government readies the country to host both the 2014 World Cup and the 2016 Summer Olympics.

Since its inception in 2001, Gol has increased its share of the Brazilian domestic market to slightly more than 40%. Introducing the low-cost business model—a la U.S.-based Southwest –has been the key to Gol’s success. Over the years, Gol has perfected this model and now possesses the lowest cost per available seat kilometer in the Brazilian industry. Although the firm continues to offer the same single-class service, it’s updating its fleet to an all-Boeing next-generation 737 model. The new fleet, which will be among the industry’s youngest, should continue to keep the firm’s operating expenses at bay. (Source: Morningstar)

Illinois Tool Works (ITW): A multi-billion dollar firm with over 100 years of history, ITW designs and manufactures fasteners and components, equipment and consumable systems and a variety of specialty products and equipment for customers around the world.  Several ITW brands are leaders in their markets.

ITW is well-positioned to grow its business in Asia. In countries such as China and India, the company has heavy exposure to infrastructure projects in its welding and construction units. In fact, ITW has already doubled the percentage of revenue from the Asia-Pacific region since the beginning of the century. In 2010’s first quarter, ITW’s business was up 37%.

ITW is forecasting third quarter 2010 diluted income per share from continuing operations to be in a range of $0.72 to $0.84. The 2010 third quarter forecast assumes a total revenue growth range of 9 percent to 13 percent. For full-year 2010, the Company is forecasting diluted income per share from continuing operations to be in a range of $2.82 to $3.08. The 2010 full-year forecast assumes a total revenue growth range of 11% to 13%.

Disclosure: Author is short GOL puts.

Disclaimer: This article is for informational purposes only.

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7 Dow Dividend Stocks With 10%-Plus Put Option Yields

Saturday, August 14th, 2010

If this week’s downturn is making you jumpy, maybe you ought to think about taking advantage of the pullback, by selling cash secured put options on some Dow dividend paying stocks. Although these stocks wouldn’t be considered high dividend stocks, they do currently have very attractive put option yields, ranging from just below 10% to over 12% for a 5-6 month trade.

The pullback has increased the volatility and the bid prices on these put options, which benefits option sellers, AND achieves a lower break-even price.  In fact, the put option bid yield far outstrips the dividend yield on all of these 7 Dow stocks:

COMPANY SYMBOL 8/12/10 STOCK PRICE PUT OPTION BID PUT YIELD ANNUALIZED PUT YIELD DIVIDEND YIELD EXPIRATION MONTH PUT STRIKE PRICE BREAK-EVEN PRICE
CATER-PILLAR CAT $67.59 $6.95 11.48% 25.87% 2.60% 11-Jan $67.50 $60.55
JP Morgan Chase JPM $37.84 $3.65 10.78% 24.29% 0.60% 11-Jan $37.50 $33.85
AMERICAN EXPRESS AXP $42.44 $4.00 10.53% 23.73% 1.70% 11-Jan $42.00 $38.00
BANK OF AMERICA BAC $13.16 $1.42 12.26% 23.55% 0.30% 11-Feb $13.00 $11.58
BOEING CO BA $64.95 $5.90 10.42% 20.02% 2.60% 11-Feb $62.50 $56.60
Hewlett Packard HPQ $40.25 $3.65 10.04% 19.29% 0.80% 11-Feb $40.00 $36.35
Home Depot Inc HD $27.60 $2.39 9.71% 18.65% 3.50% 11-Feb $27.00 $24.61

Although its put yield is just below 10%, Home Depot is on this list due to its 3.5% dividend yield, the highest in this group. We’ve also added Home Depot to our Cash Secured Put Table this week, as it has an attractive 18%-plus put yield. However, as you can see from the table above, most of these Dow 30 dividend stocks don’t have very attractive dividend yields, which is another reason for income investors to consider selling cash secured puts on them instead.

The benefits of this strategy are 4-fold:

  1. Immediate income – You receive the cash from put sales in your account within 3 days after the trade.
  2. Much higher yields – This varies, of course, but in times of increased volatility, put yields often outpace dividend yields.
  3. Lower breakeven – All of the above puts are “out of the money”, (put option strike price is below the stock price), which gives you a lower breakeven price, and more protection against a falling  share price than owning the stock outright would.
  4. Tax deferral – You don’t have to pay taxes on sold put options until they expire, or you close your position. Thus, if you hold any of the above puts until their Jan/Feb. 2011 expiration, you aren’t liable for taxes until the April 15, 2012 deadline for paying taxes on 2011 gains.  In fact, if you’re assigned the underlying stock, you don’t have to pay taxes on the put money that you received until you sell the underlying assigned stock, since the IRS states that your tax basis for the assigned stock is lowered by the money you received for selling the put options.  Quite a nice break for investors.

Caveats:

  1. Short term tax rate – Option profits are taxed at short term rates, even if they’re held for more than 12 months, as opposed to the qualified dividend tax rate, which is now 15%, but may rise in 2011.
  2. Selling vs. Buying options – Option sellers usually have to put up much more cash than option buyers, particularly when selling cash secured puts.  Brokerages generally will require a “cash reserve”, equal to 100% of the cost of the underlying shares.  If you have a 100% cash reserve requirement, your initial cash outlay for selling cash secured put options is similar to buying stocks, with one big difference: your cash outlay will be reduced by the premium $ you sell the options for, within 3 days. (Also, if you qualify for option level 3, your broker may reduce this reserve requirement to 25 -35%).

Disclosure: Author is short BAC puts.

Disclaimer: This article is written for informational purposes only.

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5 Undervalued Basic Materials/Energy Dividend Stocks

Friday, July 16th, 2010

Are you looking for bargain basement dividend paying stocks with good earnings growth forecasts? Here’s a good place to start your search:

Our Stock Market Data page shows the Energy sector is off 8.65%, while the Basic Materials sector is down -8.43% year-to-date.  Additionally, our Market Cap/Style table shows that Large Cap Growth has taken the  biggest hit, dropping -3.92% YTD.  These two sectors have lagged way behind other industry sectors over the past year, as investors have  questioned the strength of the global recovery, and future demand.  If you believe that there will be steady or increased future demand for oil, natural gas, copper and the like, then you may want to research these 5 dividend stocks further.

We screened for low PEG ratios, strong next-year and next 5-year EPS growth figures, low Debt/Equity ratios, 3%-plus dividend yields.

The 5 stocks are: China Petroleum & Chemical (SNP), Chevron (CVX), Southern Copper (SCCO), Conoco Phillips, and Ensco (ESV):

Ticker

7/16/10 Price

Dividend Yield

P/E

PEG

EPS growth next year

EPS growth next 5 years

Total Debt/Equity

SNP

$76.96

3.35%

7.52

0.25

15.88%

29.70%

0.58

CVX

$72.07

3.94%

11.08

0.57

13.56%

19.60%

0.11

SCCO

$29.31

3.89%

20.54

0.71

38.29%

29.11%

0.33

COP

$52.09

4.16%

13.87

0.77

20.72%

18.05%

0.46

ESV

$40.63

3.36%

8.29

0.79

15.45%

10.50%

0.05

COP features the highest dividend yield of this group, currently at 4.16%, and is also in our High Dividend Stocks by sector tables.

Here are management and performance metrics, earnings dates, and volatility:

Ticker

ROE

ROA

ROI

Perform-ance (Year)

Perform-ance (YTD)

Earnings Date

Volatility (Month)

SNP

17.56%

7.78%

12.73%

-0.92%

-8.87%

4/29

1.64%

CVX

14.45%

8.09%

9.68%

17.45%

-3.32%

7/30

1.91%

SCCO

34.35%

21.83%

23.99%

41.99%

-6.70%

7/22

3.61%

COP

9.69%

3.88%

4.64%

32.22%

5.64%

7/28

2.34%

ESV

13.36%

11.11%

11.84%

10.88%

5.46%

7/22

3.56%

There are also puts and call options available on these stocks, for investors who want to hedge their investment via covered calls, or selling cash secured puts. In light of the upcoming earnings reports for 4 of these stocks, bid premiums may rise near earnings dates. Ensco (ESV), and Southern Copper (SCCO) have the highest % option yields, in keeping with their higher volatility.  In addition, Ensco, being a driller, is a rather contrarian pick right now, which also accounts for the high cash secured put bid premiums, (over 12%), for ESV in our Put Selling Table.  SCCO has even higher put options bid premiums, currently over 14%.

Disclosure: Author owns CVX shares.

Disclaimer: This article is written for informational purposes only.

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5 Defensive Utility Dividend Stocks

Friday, July 2nd, 2010

With the S&P down 12% and the Dow off nearly 10% in the 2nd quarter, you might well be thinking about defensive dividend stocks.  Comparing the various Industry Sectors over the 2nd quarter, the Utility sector has held up the best, dropping approx. 5.2%, vs. Basic Materials’ 17.2% loss.

We screened the Utility section of our High Dividend Stocks by Sector tables for dividend paying stocks with above-average ROE, ROI, ROA figures, and below-average Debt/Equity and P/E’s.

This search yielded 5 stocks, 4 from the US, and 1 from Brazil:

  • CPFL Energia (CPL) – A Brazilian electric utility based in Sao Paulo, that serves 6.6 million residential, industrial and commercial customers, mainly in the Sao Paulo and Rio Grande do Sul areas.  In 2009, they expanded into thermoelectric, biomass, and wind generation projects.  CPL has benefitted from the rapidly growing Brazilian economy. They pay 2 semi-annual dividends, with ex-dates in March and August.
  • Excelon Corp. (EXC) – A hybrid nuclear/natural gas utility, with customers in southeastern Pa. And northern Illinois. They’re the largest U.S. nuclear producer. (For more details, see our previous article about EXC.)  They pay $.525/share quarterly, with their next ex-dividend date coming up in August.
  • DPL Inc. (DPL) – DPL’s subsidiary, the Dayton Power & Light Co., is a regional electric utility that services all customer segments in west central Ohio.  They pay $.303/share quarterly, with their next ex-dividend date coming up in August.
  • Energy Inc. (EGAS) – A natural gas utility that distributes and sells to residential, commercial, and industrial customers in Maine, N. Carolina, Wyoming and Montana.   They pay $.045/share monthly.
  • AGL Resources (AGL) – An energy services holding company, that distributes natural gas in 6 eastern US states. AGL also owns natgas pipelines and sells telecom conduit and fiber optic cable.  They pay $.44/share quarterly, with their next ex-dividend date coming up in August.

Here’s how these 5 utility stocks stacked up vs. Utility Sector Averages:

CPL EXC DPL EGAS AGL Utility Sector Avgs.
DIVIDEND YIELD 6.39% 5.52% 5.05% 4.97% 4.93% 3.43%
ROE

25.88%

21.55%

21.53%

19.64%

13.28%

 11.65%
ROI

11.96%

6.07%

7.07%

13.31%

5.28%

 4.36%
ROA

8.34%

5.51%

6.34%

9.34%

3.99%

 3.87%
Debt/Equity

1.34

.97

1.14

 .77 1.16 1.43
OPERATING MARGIN

17.12%

28.72%

26.29%

15.82%

21.46%

 18.74%
P/E 13.80 9.17 11.98 6.03 11.67 17.27

There are covered call and put options available on EXC, DPL, and AGL.  With the market decline, put options are currently offering much higher bid premiums than call options. Many investors sell cash-secured puts, as an alternative to buying a stock outright, in order to decrease their risk, by achieving a lower break-even point.

Of these 3 stocks, Excelon currently has the most attractive yields for selling cash-secured puts, and is listed in our Covered Put table.

Disclosure: No positions at this time.

Disclaimer: This article is written for informational purposes only.

© 2010 DeMar Marketing.  All rights reserved.

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The Top 5 Foreign Dividend Paying Stocks For 2010

Friday, June 18th, 2010

In our previous article, “The Top 5 U.S. Dividend Paying Stocks for 2010”, we identified the five U.S. dividend stocks which are projected to make the largest cash dividend payouts to shareholders in 2010.  This elite group included 2 Energy stocks, 2 Healthcare stocks, and a Telecom stock.

The top 5 foreign dividend paying stocks that we’ve identified include a Spanish bank, 2 Chinese and British telecoms, and 2 energy companies, from Holland, and France.  It turns out that 1 of these foreign Energy stocks is actually projected to pay out more cash dividends than any of the U.S. stocks.  All 5 of these foreign dividend stocks trade in the U.S. on the NYSE.

Topping this list is Holland’s Royal Dutch Shell, (RDS-A & RDS_B), both of which are major integrated Oil & Gas firms, that are active in the Upstream, Midstream and Chemicals segments of this business. Concerning risk, this group certainly has some.  The list includes Banco Santander, (STD), a conservatively run Spanish bank with a strong presence in Brazil, but a part of the ongoing Eurozone Sovereign debt crisis.

China Mobile, (CHL), has the second largest market cap of any Chinese/Hong Kong-based stocks traded on the NYSE, (PetroChina is the biggest), and offers mobile telecom and related services, mostly in mainland China.

The group is rounded out by a French and British firm: Total, (TOT), and Vodafone, (VOD).

Vodafone paid out $1.24/ADR share in 2 semi-annual payments in 2009.  They raised their summer semi-annual 2010 payout to $.812. The ex-dividend date was June 2nd.  Their next ex-date should be around Nov. 18th.  In 2009, this Nov. payment was $.448/ADR share, so, if it stays steady, VOD will pay out $1.26/ADR in 2010.  VOD’s current dividend yield is 6.1% on ADR shares.

Here’s the table for the Top 5 Foreign Dividend Stocks:

FOREIGN STOCKS

2010 PROJECTED PAYOUT (BLN$)

ANNUAL DIVIDEND/SHARE

Royal Dutch Shell (RDS/A & RDS/B)

$10.29

$3.36

Banco Santander (STD)

$8.16

$0.94

China Mobile (CHL)

$7.25

$2.11

Total (TOT)

$6.89

$3.09

Vodafone (VOD)

$6.58

$1.26

The other risk issue for investors involves foreign currency translation.  When currencies such as the Euro and the Dollar have big moves vs. each other, as we’ve seen in 2010, it will affect companies who conduct a large % of their business in foreign currencies.  As even many U.S. companies generate a lot of their revenue overseas, U.S. investors have been increasingly seeing the effects of foreign currency fluctuations and translations impact many firms’ profits, both foreign and domestic.

We’ve put together a table of Projected Upcoming ex-Dividend Dates and Quarterly Dividends/Share for these stocks. (Keep in mind, however, that none of the payouts listed below are confirmed as of yet, and the amounts can vary):

FOREIGN STOCKS

2010 PROJECTED Ex-Dividend Dates

PROJECTED Quarterly or Semi-Annual Dividend/Share

Royal Dutch Shell (RDS/A & RDS/B))

8/04/2010

$.84

Banco Santander (STD)

7/29/2010

$0.188

China Mobile (CHL)

9/10/2010

$0.868 (Semi-Annual)

Total (TOT)

11/9/2010

 $1.615 (Semi-Annual)

Vodafone (VOD)

11/18/10

$.448 (Semi-Annual)

Disclosure: Author has no positions at this time.

Disclaimer: This article is written for informational purposes only.

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The Top 5 U.S. Dividend Paying Stocks for 2010

Friday, June 11th, 2010

Have you ever wondered which dividend paying stocks actually pay out the most money in cash dividends to their shareholders?  We posed this same question in 2009, in our article,           “The Top 5 Dividend Stocks for 2009”, a 3-part series, which identified the 5 firms who paid out the most cash to shareholders, and we explored various ways of investing in and profiting from these dividend stocks.

Four US firms made the top 5 list in 2009: AT&T, GE, Exxon, and Chevron.

In 2009, dividends were eliminated, or slashed by many venerable firms, due to the recession, particularly in the Financial  sector, which formerly accounted for over 20% of 2008 dividends paid out in the S&P, but shrank to paying out less than 10% of the total in 2009.

According to Standard & Poor’s, the average dividend yield in the Telecom Sector has taken the biggest jump so far in 2010, rising from 5.53% in 2009 to 6.29% this year, while the Financial sector has continued its yield decline, from a 2008 average yield of 4.44%, down to 1.22% in 2009, and down again to 1.14% in 2010.

The Telecom sector has many firms listed in our High Dividend Stocks by Sector tables.

Here’s how the Sectors average dividend yields and overall contributions to the overall S&P 500 ranked as of 5/26/10:

INDUSTRY SECTOR

SECTOR DIVIDEND CONTRIBUTION

SECTOR DIVIDEND YIELD

SECTOR DIVIDEND YIELD

5/26/2010

(As of 5/26/2010)

2009

Telecom Services

8.58%

6.29%

5.53%

Utilities

8.04%

4.75%

4.26%

Consumer Staples

17.57%

3.25%

2.96%

Health Care

13.29%

2.37%

2.03%

Energy

12.00%

2.35%

2.05%

Industrials

11.47%

2.28%

2.26%

Materials

3.42%

2.10%

1.76%

Consumer Discretionary

7.74%

1.53%

1.44%

Financials

8.82%

1.14%

1.22%

Information Technology

9.08%

1.02%

0.89%

S&P 500

100.00%

2.10%

1.95%

(SOURCE: Standard & Poor’s)

So, did any of the same top 2009 dividend paying stocks make it to the top 5 for 2010?

As it turns out, 3 out of 4 of these firms are poised to pay out even larger amounts of cash dividends in 2010.  As expected, GE, which cut its dividend in 2009 to $.10/quarter, from $.31/quarter, didn’t make the top 5 this year.

Here’s our list of the projected Top 5 U.S. Dividend Paying Stocks for 2010:

2010 Projected Payouts (in Billions$) Total Projected Annual Dividend/Share
AT &T  (T)

$9.92

$1.68
Exxon  (XOM)

$8.27

$1.76
Johnson & Johnson (JNJ)

$7.93

$2.11
Pfizer (PFE)

$5.81

$0.72
Chevron (CVX)

$5.79

$2.88

We’ve also compiled a list of projected upcoming ex-dividend dates and quarterly payouts/share for these Top 5 dividend stocks.

Projected Upcoming Dividend Dates Projected Quarterly Dividend/Share
AT &T  (T)

7/2/2010

$.42
Exxon  (XOM)

8/11/2010

$.44
Johnson & Johnson (JNJ)

8/27/2010

$.54
Pfizer (PFE)

8/5/2010

$0.18
Chevron (CVX)

8/17/2010

$.72

A looming issue for dividend investors is the status of the qualified dividends tax rate, which is currently at 15% until the end of 2010.  If Congress lets this tax rate simply expire, dividends could be taxed at the old 39.6% rate, which may very well inspire some dividend paying stocks to increase their payments in the fourth quarter, in order to still achieve the lower tax rate.

Disclosure: Author currently holds shares of XOM, T, and CVX.

Disclaimer: This article is written for informational purposes only.

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The Oldest Dividend Paying Stocks in America – Part 4 July 27, 2008

Tuesday, September 1st, 2009

The final article in this series covers 2 more venerable dividend paying stocks that offer investors secure dividend payouts.  We also examine various strategies for improving their dividend yields.

Colgate-Palmolive, (CL), and John Wiley & Sons, (JW/A), are 2 very old firms that have a long history of paying out dividends.

Click here… to keep reading.

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The Oldest Dividend Paying Stocks in America – Part 3 July 18, 2009

Tuesday, September 1st, 2009

In this article, we profile two more of the oldest U.S. dividend paying companies, and examine the best way to increase these yields.

Lorillard, (LO), and Valspar, (VAL), are 2 dividend stocks worth taking a deeper look at.

Click here… to learn more.

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The Top 5 Dividend Stocks for 2009 – Part 3 – Buying Stocks At A Discount – May 20, 2009

Monday, August 24th, 2009

In parts 1 & 2 of this series, we identified 2009’s top 5 dividend paying stocks, based on total cash payouts to investors. We also discussed a strategy that will protect your dividend yield against a market pullback.

In this article, we’ll discuss an option trading strategy through which you can buy a stock at a discount to its current price, or, at least earn a nice yield by trying to.

If you have your eye on some high dividend stocks, or you’ve put together a best stocks watch list, but the current prices are too high, you can often utilize selling put options to make sure you still profit from these stocks.

Click here… to continue reading.

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