High yielding stocks continue to make sense as rates will remain anemic in more traditional investments like savings accounts, bonds, etc. The dividend stocks below pay yields from about 7% to 15%. These kinds of payouts are particularly attractive to own within an IRA, 401k or other tax deferred account since your dividend payments will be allowed to compound tax free over time. Two of the stocks below have dropped along with the markets over the past few weeks and have not yet fully recovered. Because of that, the first two stocks listed look particularly attractive:
Ferrellgas Partners (NYSE:FGP) is trading around $23.05. Ferrellgas is a leading distributor of propane fuel products, based in Kansas. These shares have traded in a range from $21.76 to $29 in the last 52 weeks. The 50 day moving average is $24.21 and the 200 day moving average is $25.22. FGP offers propane under the Blue Rhino label. As the economy recovers more propane will be used by businesses and consumers and pricing power should improve for Ferrellgas. FGP pays a generous dividend, $2 per share, which is equivalent to an 8.8% yield.
Chimera Investment Corporation (NYSE:CIM) is trading around $3.46. Chimera is a real estate investment trust and is based in New York. These shares have traded in a range from $3.36 to $4.36 in the last 52 weeks. The 50 day moving average is $3.61 and the 200 day moving average is $3.73. CIM is estimated to earn about 61 cents per share in 2011. Insiders have been making substantial purchases of this stock recently at prices between $3.92 and $4.18. CIM pays a solid dividend of 52 cents per share, which is equivalent to a 15% yield. The book value is stated at $3.45.
Enerplus Corporation (NYSE:ERF), is trading around $31.83. Enerplus is based in Canada, and develops oil and gas properties. These shares have traded in a range from $21.51 to $33.29 in the last 52 weeks. The 50 day moving average is $30.87 and the 200 day moving average is $29.64. The book value is stated at $19.21. ERF pays a solid dividend of $2.25 per share which is equivalent to a 7% yield. These shares look interesting on dips around $31 or below.
Disclosure: I am long CIM. I plan to buy FGP and ERF soon.
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.