Bottom Fishing For High Dividend Stocks – Part 4 – June 19, 2009

By Robert Hauver

In this article, we’ll look at another high dividend stock with a great balance sheet, high dividend yield, (over 6%), and low dividend payout ratio, (under 40%), and a steady history of increasing dividends.

Another uncommon characteristic of this stock is its very low PEG ratio of .57, which means that its price is very cheap , relative to earnings growth.

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Bottom Fishing For High Dividend Stocks – Part 3 – June 12, 2009

By Robert Hauver

In the first 2 parts of this series, we used two different conservative option trading strategies from our newsletter to profit from a solid high dividend stock.  Our 6 fundamental screens have given us another great company which is still within reach.

We’ll now take a deeper look at this diversified chemical company, and research some ways to make its high dividend yield even more attractive, while hedging our risk at the same time.

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Bottom Fishing For High Dividend Stocks – Part 1 – June 2, 2009

By Robert Hauver

Given the 30%-plus rise in the S&P 500 since March 9th, 2009, income investors might be hard-pressed to find high dividend stocks whose prices haven’t gotten ahead of themselves.

On a recent bottom fishing expedition, we used 6 initial screening parameters to find high dividend stocks with superior balance sheets that were optionable.

Click here… to read more about these screens, which stocks they identified, and how we used a conservative option trading strategy to earn double dividends…

Timber – A High Yield Asset That Never Stops Growing – May 27, 2009

Who says that money doesn’t grow on trees? Did you know that timber was one of the ONLY assets that appreciated in 2008?

Just take a look at the high dividend stocks in the diversified timber REIT sub-industry, and you might just might launch into a verse of Monty Python’s “Lumberjack Song”…

One Timber Reit that comes up in a screen for high dividend yields is Potlatch Corp., (PCH).

A metric that investors use when analyzing timber companies is the

amount of acres/share. At Potlatch’s current price of $26.77, you get approximately 38-39 acres/share, plus you get the rest of the business for free.

You can juice PCH’s high dividend yield even further, by selling January 2010 covered calls, essentially earning an extra, or “double dividend”.

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

By Robert Hauver

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.

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The Top 5 Dividend Stocks for 2009 – Part 2 – Protecting Your Dividend Yield – May 15, 2009

By Robert Hauver

In part 1 of this article, we identified 2009’s top 5 dividend paying stocks, based on total cash payouts to investors. We also posed the question, “What if you want the dividend income from these stocks, but you’re afraid of a market pullback, or, you think the prices are too high right now?”

1. Royal Dutch Shell (RDS-A, RDS-B) Pays $3.20/share, and currently yields 6.5%.

2. AT&T (T) – Pays $1.64/share, has a current dividend yield of 6.4%.

3. General Electric (GE) GE’s $.82/share 2009 payout currently equals a 6.1% yield. (The payout will decrease to $.10/share per quarter in the 3rd quarter of 2009, so the remaining payout/share for the balance of 2009 will be $.51, a yield of 3.8%, or 5.7% annualized).

4. Exxon Mobil (XOM) The company’s annual dividend rate is $1.60/ share, for a 2.46% current yield.

5. Chevron Corp. (CVX), has an annual dividend/share of $2.60, which equals a dividend yield of 3.8% at the current price.

There are 2 ways you can use options trading to protect yourself from a falling market. In strategy 1 you’ll still earn the dividend income, in addition to your option income. which can often multiply the dividend yield several times over.  In strategy 2, you’ll either end up owning the stock at a lower price and a higher yield, or you’ll earn a very attractive short term yield:

Strategy 1: Sell covered calls.

Strategy 2: Sell covered, (cash-secured), put options.

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“The Oracle of Omaha Speaks” – May 2, 2009

By Robert Hauver

At this weekend’s Berkshire Hathaway meeting, Warren Buffet advised shareholders that he’ll be looking to acquire foreign companies, and/or stocks that generate a large portion of their earnings in non-U.S. currencies.  These could include foreign dividend paying stocks, or U.S. companies with a strong overseas presence.

He also said that Berkshire’s earnings were buoyed by the steady performance and dividends of their utility holdings.

Regulated utility companies, which we discuss in our report, “Drought Resistant Dividends”, (free with all subscriptions), are a dependable component for building a strong portfolio).

In this article we’ll examine the option trading strategy of selling covered put options as an alternative way to accumulate your favorite dividend stocks at a cheaper price.

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Using Put Options To Sneak Up On A Stock” – April 11, 2009

By Robert Hauver

Selling put options is an option trading technique that we often utilize to “sneak up” on the best stocks on our watch list that we want to take a position in.

You may not realize it, but trading options, such as selling covered calls and puts, is a strategy that even many conservative investors use to augment their dividend stock income.

Have you ever found yourself in a position where you’d like to buy dividend paying stocks, but the current prices are just too expensive, and the dividend yield is too low to justify buying right now?

Instead of just buying this stock, take a look at selling puts against it. To illustrate this strategy, let’s look at the data for Kraft Foods, (KFT), which closed this week at $22.35.

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