Quality stocks with solid dividends

The volatile economy is driving investors into dividend stocks. But that may be a good thing; when payouts are factored in, dividend stocks tend to outperform.

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Jul 24, 2012 10:40PM
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However, with Spainish 10yr. Bonds at thier highest ever (and Italy not far behind), and the US 10yr. at thier lowest ever it tends to make me think we're on some awful shakey ground. With the Euro dropping to a two year low, that won't bode well for US companies selling over-seas, as we can see by the projections of companies, such as say, Cummins. To tell someone that now is A good time to buy, is almost as responsible as telling someone to buy same time in 2008, right before the bottom fell out. Not like we're facing a Fiscal Cliff, that will crush companies here in the US. Not like the Euro's on the brink of collapse. Not like China is lying about thier numbers. All we need is one solid catalyst to throw us into a heavy downward trend, that with the current state of the global economy will take years to recuperate from. Who knows, perhaps the next crash will get will be the "correction" Wall Street needs? And with the price of oil, and now food going up, where will this discretionary income to buy the next iphone come from? Instead of telling people to buy into stocks perhaps you should be responsible, and line up all the head winds the market is facing, as I've only touched on a few (currently I believe I saw a list of like 25+). Then and only then, once you've spelled out the risks for people should you give your opinions on what people should buy. And if people can't find thier own stocks, then they really should be in mutual funds anyhow, as individual stocks carry much more risk, and should be researched accordingly. But I forgot, someones "charitable trust" probably wants people to buy into these stocks to get the price up so they can dump.

Jul 29, 2012 11:44AM
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First of all 5% is good?! Really!  NOT NOT NOT.  How about 8% or 15%. I average about 9.5% and mutual funds are definately NOT on my shopping list.  Why in all that's logical would I pay someone else 1-3% of my dividends to poorly manage my money when I can be pocketing it myself?  Here's a few to look at:  FTE - 15%, KCAP - 12%, PBI - 11%, CPLP 11%,  WIN - 10%, FGP - 10%, DNI 12%, These are just some of the stocks I hold and have held for some time.  I enjoy the dividends and ignore the shifting price, unless of course it drops then I buy more.  dividendyieldhunter dot com and quantumonline dot com along with stock scouter from MSN are great places to find high yields and affordable prices.  But like all stocks be sure to do the research on the company and factor in the tax (both foreign and domestic) you will now be required to pay starting next year.  Remember Obama takes 42% of all your dividends.  Guess what that will do to your mutual fund income!  If any of you want to retire ever or stay retired the current administration need to be voted out.  The change Obama was talking about was all that is left of your hard earned money after you pay for all his new taxes.  Gee I wonder why the smart people have money in off shore accounts?
Jul 30, 2012 10:36AM
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I keep hearing about "when the economy turns around", "when interest rates rise". I have had 50% of my net worth in GO muni's yielding an average 5.3% double tax free for 5 years now, During that time the capital value of the bonds has increased by around 11%. The other 50% of my net worth is in rental apartments which I purchased between 10 and 15 years ago.

I am not convinced that interest rates will face a substantial move for at least another 3 years and probably longer. When they finally do move, the apartments will protect me against inflation and the falling value of the bonds.

However with the current insane administration I can be sure that the tax shelter value of my bonds will continue to be so attractive that it will offset any fears about inflation.

My effective return on my bonds is north of 8% (in my bracket now State and Fed - I am in CA) if the lunatic robber gets re-elected my effective return will be much higher and the demand for these bonds will be HUGE.

I do worry about Obama issuing an executive order for a national rent control or something equally stupid but we all know he cannot sustain by constantly stealing from hard working people to give to illegals.

Jul 25, 2012 9:17AM
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Whenever I buy stocks, it must meet 2 priorities: 1. I actually use the product and 2. it must pay dividends. I had such a portfolio all purchased 3 days after 9/11. Mostly banks, hotels (i traveled alot), electric company, and a specific clothing stock. Never looked at them again. Unfortunately, I was in hospital during the crash and could do nothing (never use cheaper trade online again they never call). I did not even know what was going on. After discharge I immediately went to the portfolio. EVERY stock save ONE had tanked, and one had already reverse-split (with many to follow). The only survivor was the clothing stock. It actually doubled, dividend went up, started a special dividend of $5 occasionally while I watch almost $900000 evaporate--through take-overs, reverse-spilts, bankruptcy. The stock survived and continue to grow. Just never worried about it. It had, of course, by this time been bought, with a premium, by the company that had spun it off originally. By now you should know, the stock originally purchased Victoria Secret. Why? I bought it for my wife and figured that as long as there were men in the world, she would do well. The Limited came back into the picture and the specials came fast and furious. In 2009 The Limited (LTD) had reached its all time high and my shares had actually almost doubled (I had originally bought at $4.42; it was now $42.95. With the portfolio gone, we needed some immediate cash so I sold at $45.92. I noticed the other day that she was still pulling the LTD up to almost $60. The management is first rate, they are trustworthy, they tell you good, bad anything. When the next crash comes next year, I am getting ready to buy and buy.  
Jul 25, 2012 8:50AM
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Let's see ...I buy a good dividend stock today at say $100.  The market finally tanks for good when the Fed quits printing money and that stock drops to $60.  How long to break even with a 3% dividend?  What if I am retiring next year?   I know you guys are paid by your advertizers to print this stuff but you should at least label them as advertizements.
Aug 7, 2012 11:57AM
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I have never understood why they 'hawk' taxable stock dividends which give after tax lower yeild than tax free bonds.

1.  The good bonds are FAR safer with guarenteed yeild.

2.  Stock price drop cancels out dividend gain A LOT lately.

 

I have watch-listed many stocks from MSN articles.  I would have to be an idiot to follow.  I hate negative returns.

 

I have gotten many good stock tips from INDIVIDUALS with reasonable intelligence who control their own stuff.

I will definitely check out the stocks listed by Sonoroncat, and buylow (like that name)

 

I also am in CA....this planet....I sold a house this week, I also purchased 15 years ago.  300% gain, most of which is non-tax...assume you are familiar with property tax law.

 

I do feel bad for anybody who purchased LESS than 10 years ago.  Had I sold in 2008, my gain would have been over 500%.

 

And for those below who think the world economy will go to ****....why do you put money in the stock market.

 

I am on pace for a capital gain of 15% this year....not counting my 13.51% div yeild.  I am not a genius or pro....but I do my homework.  I would not recommend what I do, unless you look at it like a full-time job.  (retired).  2 years ago I was watchin an anual negative return.  I fired my advisor.  My portfolio is up 27%.

 

I will throw one name out there....AGNC div is in 15%  It tanked 3+% today.  I doubled up.  I have had an 89% overall return on it and is a solid public REIT.  I don't have to watch it close at all.

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