5%+ Dividend Yields in the S&P 500 16 comments
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For all the dividend hunters out there, below we provide a list of the S&P 500 stocks with dividend yields above 5%. As shown, Frontier Communications (FTR) tops the list with a yield of 13.33%. Windstream (WIN) has the second highest yield at 9.95%, followed by Qwest (Q) (8.63%) and CenturyTel (CTL) (7.98%). The four highest yielding stocks in the S&P 500 are all in the Telecom sector. Altria Group (MO) has the highest dividend yield in the Consumer Staples sector at 7.12%.
In late 2008, this list would have been littered with financial stocks whose yields spiked since share prices were tanking. The dividends for the majority of financials ended up being cut or eliminated, however, so they no longer pay the nice dividends that investors looking for yields like. Now that things have stabilized, look for financials to start boosting dividends again. But as always, buyer beware. (Click to enlarge)
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and scams . There are many scams waiting to be discovered , some will be and many will not be .
Elliott Wave have done some great analysis comparing the 1929 collapse, subsequent 1930 dead cat bounce and the following depression to the 08/09 economic scenario we are experiencing now.
Source: elliottwave.com/r....
However, many of the names listed above have unsustainable dividend payout ratios, and the last thing any investor needs is to buy a stock because of its high dividend, only to find that dividend decimated, followed shortly thereafter by the stock price tanking. As one example, the list includes AEP, which used to pay over $2.5 in annual dividends and trade for $40 many years ago, and now it pays $1.64 and trades for $30. Another example is Goodyear Tire (GT), which many years ago paid a handsome dividend and traded in the 30's, now it pays no dividend and trades in the teens, and the list of such situations is long and ugly.
The trick is guessing which of the issues listed in the table will lead to similar dead-ends, so buyer beware, and remember that the market is discounting these issues for a reason.
one thing I look at is if the company is REQUIRED by vast consumer bases, DUK and NI for example, (are two I own,) both are utilities but are diversified utilities, not just selling one thing to one group of people. say electricity or water or gas, but selling, transporting & servicing to end users as well as companies & government backed services. Both of them also have large areas that are under end user increases that will result in more free cash flows as the deregulation has helped them be able to raise rates as well as the cost of raw materials have dropped dramatically in last year. Their costs to consumers has increased. this means one thing BUY BUY BUY.
Mark
www.elliottwave.com/r....
On Nov 22 08:13 AM TradingHelpDesk wrote:
> If you have to have equity exposure it's a great idea to go for dividend
> paying stocks with a good dividend coverage ratio. They should prove
> more defensive if we have another stock market retreat which in my
> view is becoming increasingly likely. I just see froth on the of
> price risky assets not real economic growth.
>
> Elliott Wave have done some great analysis comparing the 1929 collapse,
> subsequent 1930 dead cat bounce and the following depression to the
> 08/09 economic scenario we are experiencing now.
>
TIA.
From erictyson.com/arti...:
"Here's how Prechter's trading advice has done from 1/1/85 through 5/31/09 versus the broad U.S. stock market average (Wilshire 5000 index) according to Hulbert's analysis:
Annualized Return:
* Wilshire 5000 Index + 9.7 percent
* Prechter's Trading Advice -15.4 percent
Total Return:
* Wilshire 5000 Index + 857.1 percent
* Prechter's Trading Advice - 98.3 percent
"On an annualized basis, Prechter has underperformed the broad U.S. stock market Wilshire 5000 index by a whopping 25 percent per year! Here's what Hulbert's analysis shows would have happened to $100,000 invested according to Prechter's investing trading advice versus the Wilshire 5000 U.S. stock market index:
$100,000 Invested (1/1/85-5/31/09):
* Wilshire 5000 Index $957,100
* Prechter's Trading Advice $1,700"
Might not be a wise idea to invest based on Elliot Wave theory.
On Nov 22 11:23 AM TradingHelpDesk wrote:
> Sorry. Doh! Here's the right link:
>
> elliottwave.com/r....;rcn=aa51b&...
>
Dividends are nice, but dividends plus buybacks have proven to be more profitable then just dividends alone. The Net Payout Yield is what people should focus on.
On Nov 22 11:09 AM Michael D. wrote:
> Don't get caught chasing yield. The author would be best to note
> the current payout ratio, or payout /operating cash flows. This will
> quickly weed out the chaff.
All you have to do is read, read, read. Study the history and keep an eye on your stocks. Look ahead at what is going to be the issue of the future. What is it that people will need in the future? Study the history of dividend payments. Has the company been paying this great dividend for the last 10 - 20 years, or did they start in April of last year? Read, read, read.
Good Luck.