6 Dividend Stocks for Those the Rally Left Behind

The rip-roaring rally in stocks since early March might have left some investors feeling like they missed the boat. But there are still some good buys in the market if you are a dividend or income investor. Of note are non-cyclical companies with high and growing dividends.

Their price gains have considerably lagged the advance and their dividends are still significantly higher than historical averages. They also provide substantially better income than bank deposits, money market funds, and government bonds.

Moreover, if the green shoots in the economy don’t blossom to the extent expected, these defensive stocks may regain some popularity. They could be the answer for investors who have doubts about the growth path of the economy in the short or long term.

Some examples (with yields in brackets) from Canada and the U.S. are:

Canada
Fortis Inc. (FORSF.PK) 4.5%
TransAlta Corp. (TAC) 5.5%
TransCanada Corp. (TRP) 4.7%

U.S.
Duke Energy Corp (DUK) 6.8%
Progress Energy (PGN) 7.2%
Southern Company (SO) 6.3%

Comments

[David Van K...:]

What good is an unexplained, unanalyzed list of 6 stocks that pay dividends? What makes them stand out from the other thousand or so stocks that pay dividends? What makes them "non-cyclical"? Why have their price gains "considerably lagged the advance"? What are the risks behind a pink-sheet stock? Why might these stocks "regain some popularity"?

May 26 08:15 AM

[firboy4:]

Very good point David! I know that SO hasn't come up because it's an electric utility. So are PGN and DUK. And with all of this talk of clean coal burning and the environment from the Obama administration, it's normal that these 3 would suffer, along with the fact that they are regulated utilities. So, sure they are safe stocks, and when other stocks suffer and people get scared, these type generally go up.

So, I agree with you. This article is rather useless. I would like to have known why those other 3 stocks might do well, as I'm not familiar with them. I certainly won't be following THIS author! Dave Morrison

On May 26 08:15 AM David Van Knapp wrote:

> What good is an unexplained, unanalyzed list of 6 stocks that pay
> dividends? What makes them stand out from the other thousand or so
> stocks that pay dividends? What makes them "non-cyclical"? Why have
> their price gains "considerably lagged the advance"? What are the
> risks behind a pink-sheet stock? Why might these stocks "regain some
> popularity"?

May 26 09:29 AM

[ArtfulDodger:]

I wouldn't buy DUK or SO because of the cap-&-trade bill working its way through Congress.

Both companies will be harmed to the point of being crippled if the bill passes intact.

May 26 07:15 PM

[realold:]

I owned your stocks until the cap and trade crowd took over. Fortunately, my loses were minimal. I don't advise anyone to bet against the Messiah nor his followers/leaders. Stay away from utilities and anything containing carbon (including our "leadership"), unless it is based outside the U.S of A(atrophy). Total and BP have been doing well for me so far. Good luck..

May 26 09:38 PM

[buoy:]

Coal fired...danger ahead!

May 27 08:13 AM

[Sonny M:]

Duke is number three or four in nuclear power generation in the U.S. (no CO2 emissions), and they are planting a million trees in the Mississippi Valley to be able to earn carbon credits. There are many electric utilities in worse shape.

May 28 06:00 PM