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If you want to try the 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 about the same price, yet still being entitled to the dividend, there are many stocks to choose from. This technique generally works only in bull markets.

When you buy dividends, there are many stocks in many different sectors 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 few weeks.

Unum Group (UNM) Ex-dividend date: 4/23/09 P/E ratio: 9 Yield: 2.0%

Magyar Telekom Plc. (MTA) Ex-dividend date: 4/27/09 P/E ratio: 7 Yield: 11.8%

A. O. Smith Corporation (AOS) Ex-dividend date: 4/28/09 P/E ratio: 11 Yield: 2.6%

Fomento Economico Mexicano SAB (FMX) Ex-dividend date: 4/28/09 P/E ratio: 15 Yield: 0.6%

Texas Instruments Incorporated (TXN) Ex-dividend date: 4/28/09 P/E ratio: 12 Yield: 2.4%

Tyco International Ltd. (TYC) Ex-dividend date: 4/28/09 P/E ratio: 10 Yield: 3.6%

Babcock & Brown Air Limited (FLY) Ex-dividend date: 4/28/09 P/E ratio: 3 Yield: 15.2%

CARBO Ceramics Inc. (CRR) Ex-dividend date: 4/29/09 P/E ratio: 13 Yield: 2.1%

If you like dividend stocks, you should check out the high yield utility stocks and the Monthly Dividend Stocks at WallStreetNewsNetwork.com. For more details on dividend definitions, check out definitions of dividend dates. Don't forget to reconfirm the ex-dividend date with the company before implementing this technique.

Disclosure: Author owns TYC.

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This article has 3 comments:

  •  
    Add ANH on 4/28 (about 18% divy) and STD on 4/28 as well (10% divy).
    Apr 20 10:12 AM | Link | Reply
  •  
    The way my luck has been going I'd buy a stock before the ex-dividend date and watch the stock fall more than what the dividend is before I could sell. I don't think this market is a good one to try this in either.
    Apr 20 06:02 PM | Link | Reply
  •  
    I like this technique, but it's tough to pull off if the stock has a yield less than about 3%.
    May 16 06:33 PM | Link | Reply