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In bull markets, investors sometimes use a stock trading technique called 'Buying Dividends,' which is the technique of buying stocks before the ex dividend date and selling the stock shortly after the ex date at approximately the same price, yet still being entitled to the dividend. This technique usually only works in bull markets.

If you are interested in buying dividends, there are several stocks in several different sectors and industries to choose from. In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can't sell the stock until after the ex date. The actual dividend may not be paid for another month.

All of the following stocks have market caps over $500 million, and yields over 3%:

  • NuStar GP Holdings, LLC (NSH) is going ex-dividend on 11/3/2008. The stock has a P/E of 17, a PEG of 1.51 and a yield of 8.40%.
  • Autoliv Inc. (ALV) is going ex-dividend on 11/4/2008. The stock has a P/E of 5, a PEG of 0.54 and a yield of 6.88%.
  • Enbridge Energy Partners, L.P. (EEP) is going ex-dividend on 11/4/2008. The stock has a P/E of 13, a PEG of 3.29 and a yield of 12.16%.
  • Penn Virginia Resources (PVR) is going ex-dividend on 11/4/2008. The stock has a P/E of 14, a PEG of 1.61 and a yield of 12.61%.
  • Penn Virginia GP Holdings, L.P. (PVG) is going ex-dividend on 11/4/2008. The stock has a P/E of 18, a PEG of 0.99 and a yield of 8.78%.
  • Alcoa Inc. (AA) is going ex-dividend on 11/5/2008. The stock has a P/E of 6, a PEG of 0.73 and a yield of 5.57%.
  • FirstEnergy Corp. (FE) is going ex-dividend on 11/5/2008. The stock has a P/E of 12, a PEG of 1.69 and a yield of 4.47%.
  • Magellan Midstream Partners, L.P. (MMP) is going ex-dividend on 11/5/2008. The stock has a P/E of 10, a PEG of 1.45 and a yield of 9.23%.
  • Inergy, L.P. (NRGY) is going ex-dividend on 11/5/2008. The stock has a P/E of 28, a PEG of 4.00 and a yield of 12.65%.
  • Overseas Shipholding Group Inc. (OSG) is going ex-dividend on 11/5/2008. The stock has a P/E of 5, a PEG of 0.28 and a yield of 4.09%.
  • Magellan Midstream Holdings, L.P. (MGG) is going ex-dividend on 11/5/2008. The stock has a P/E of 13, a PEG of 0.77 and a yield of 8.05%.
  • Sunoco, Inc. (SUN) is going ex-dividend on 11/6/2008. The stock has a P/E of 13, a PEG of 1.75 and a yield of 4.74%.
  • Fortune Brands, Inc. (FO) is going ex-dividend on 11/7/2008. The stock has a P/E of 12, a PEG of 1.25 and a yield of 4.43%.

Disclosure: Author does not own any of the above.

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This article has 3 comments:

  •  
    I appreciate this very useful advice! I already own, or am planning to buy, many of the listed stocks.
    2008 Oct 20 10:57 PM | Link | Reply
  •  
    I also say thanks for the information. A very interesting list.
    2008 Oct 20 11:07 PM | Link | Reply
  •  
    Article has misleading information.
    The NSH ex-dividend date has expired; it was set prior to this date: 8/4/09.

    Please make corrections.
    Oct 27 06:31 PM | Link | Reply