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These companies pay dividends, in some cases very generous dividends of up to ~15%. In this low rate world, these stocks offer great alternatives to other investments. Furthermore, the dividends look to be safe with these companies as their earnings power per share indicates they are not at risk of a meaningful dividend cut. With the dividends looking solid here, it's possible these stocks could see appreciation as well. Here are the seven stocks:
Annaly Capital Management, Inc., (NYSE:NLY) is trading around $17.56. Annaly is a mortgage real estate investment trust (REIT) company, based in New York. These shares have traded in a range between $14.09 to $18.54 in the last 52 weeks. The 50 day moving average is $17.28 and the 200 day moving average is $16.69. NLY is estimated to earn about $2.47 per share in 2011.
What Annaly shares might be a solid dividend play: The book value is stated at $15.34 so these shares are trading at a small premium to book. The dividend is very generous at $2.48 per share which is equivalent to a 14.3% yield. The dividend payout is covered by the earnings, so the dividend looks to be secure.
Starwood Property Trust (NYSE:STWD) is trading around $22.03. Starwood is a real estate investment trust (REIT) company, based in Connecticut. These shares have traded in a range between $16.44 to $23.67 in the last 52 weeks. The 50 day moving average is $22.22 and the 200 day moving average is $20.05.
Why Starwood shares might be a solid dividend play: The dividend payout is $1.68 per share which is equivalent to a 7.7% yield. This REIT focuses on commercial mortgages and with commercial real estate picking up, Starwood should benefit from this trend. Barry Sternlicht, CEO of Starwood recently said ""The commercial real estate debt markets have improved considerably over the past year,". You can read his remarks and the latest earnings report here. With the earnings outlook improving, chances are the dividend payout is safe.
Hatteras Financial Corp (NYSE:HTS) is trading around $27.81. Hatteras is a mortgage real estate investment trust (REIT) company, based in North Carolina. These shares have traded in a range between $11.25 to $31.98 in the last 52 weeks. The 50 day moving average is $28.42 and the 200 day moving average is $27.73. HTS is estimated to earn about $4.29 per share in 2011. Insiders have been buying. You can see the insider buying here.
Why Hatteras shares might be a solid dividend play: The book value is stated at $24.84 so these shares are trading at a small premium to book. The dividend is very generous at $4 per share which is equivalent to a 14.5% yield. With that kind of payout, and when yields in other investments are still very low, it's easy to see why insiders are buying. The fact that insiders are buying could also be a positive sign that the dividend is safe.
Compass Diversified Holdings (NYSE:CODI) shares are trading at $15.12. CODI makes investments in other companies and is based in Connecticut. These shares have traded in a 52 week range between $11 to $18.58. The 50 day moving average is $15.34 and the 200 day moving average is $15.45. Earnings estimates for CODI are at $1.77 per share for 2011 and $1.95 for 2012. Insiders have been buying. You can see the insider buying here.
Why Compass shares might be a solid dividend play: This company pays a significant dividend of $1.44 per share which is equivalent to a 9.8% dividend yield. This company has investments in a number of companies that show promise in terms of growth and investment gains. This earnings power should allow CODI to maintain the dividend with ease.
PDL Biopharma, Inc., (NASDAQ:PDLI) is trading around $6.30. PDLI is a biotechnology company and is based in Nevada. These shares have traded in a range between $4.66 to $6.75 in the last 52 weeks. The 50 day moving average is $5.60 and the 200 day moving average is $5.42. PDLI is estimated to earn about $1.17 per share in 2011 and $1.40 for 2012.
Why PDL Biopharma shares might be a solid dividend play: The dividend is 60 cents per share which is equivalent to a 9.6% yield. The earnings estimates for 2011 and 2012 more than cover the dividend payout so it looks very solid. However, these shares have jumped higher lately and I would wait for pullbacks before buying. This company earns royalties from a number of patents it owns, so it does not have the same risk level of some biotech stocks.
AstraZeneca PLC (NYSE:AZN) is trading around $49.98. AstraZeneca is a leading pharmaceutical company, and it is based in the United Kingdom. These shares have traded in a range between $40.30 to $53.53 in the last 52 weeks. The 50 day moving average is $47.85 and the 200 day moving average is $47.84. AZN is estimated to earn about $7 per share in 2011 and $6.26 in 2012.
Why AstraZeneca shares might be a solid dividend play: Between the dividend and the potential for price appreciation, there could be a solid buying opportunity here. AZN dividend payment is about $3.70 which is equivalent to a 7.6% yield. Dividends are paid twice a year, with a greater proportion in the second payment. The forward PE ratio is about 8.1, very cheap!
Disclaimer: The data is sourced from Yahoo Finance and Stockcharts.com. The information and data is believed to be accurate, but no guarantees or representations are made. Rougemont is not a registered investment advisor and does not provide specific investment advice. The information contained herein is for informational purposes.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Source: 6 Stocks With Dividend Yields Ranging From 8% to 15%