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With interest rates almost guaranteed to be low for years, there are few investments that will be likely to match the returns available from high yielding dividend stocks. After a market correction that took down almost every stock, even many dividend stocks are oversold now and the market is providing an excellent entry point for long term investors. With rates stuck near zero for at least a couple more years, smart investors are focused on building a portfolio that will pay them much more than what most bonds, certificates of deposits, and other investments will pay. The fact that these stocks have come down in price means there is a good chance they can rebound and offer investors a dividend plus capital gains in the coming months. The stocks below would create a diversified portfolio as these companies have differences in geographic location and are in a wide variety of industries from pharmaceuticals, telecommunications, energy, real estate investment trusts (REITs), etc.

Here are the oversold dividend stocks to consider:
Getty Realty Corporation (NYSE:GTY) is a real state investment trust (REIT) that primarily owns and leases auto repair, gas stations and convenience store properties. In just a few weeks this stock has dropped from about the $25 level to the current price around $18. This stock has already started to rebound off recent lows and pays a very strong dividend yield, over 10%. A recession is not likely to hurt this type of REIT because people will still be buying gas even in a down economy.
Here are some key points for GTY:
  • Current share price: $17.96
  • The 52 week range is $15.53 to $32.20
  • Earnings estimates for 2011: $2.14 per share
  • Earnings estimates for 2012: $2.14 per share
  • Annual dividend: $1.92 per share which yields 10.8%
Merck and Company, Inc. (NYSE:MRK) is a global pharmaceutical giant. Pharmaceutical companies generally have strong pricing power in times of inflation and therefore can raise prices. Pharmaceutical products are in demand even when the economy is weak and this is why investors often seek drug companies as a safe harbor in tough times. This stock has dropped from around recent highs of $36, and looks like a bargain now.

Here are some key points for MRK:
  • Current share price: $31.92
  • The 52 week range is $29.47 to $37.68
  • Earnings estimates for 2011: $3.74 per share
  • Earnings estimates for 2012: $3.85 per share
  • Annual dividend: $1.52 per share which yields 4.8%
Seadrill Limited (NYSE:SDRL) offers offshore drilling services to oil and gas companies. This stock was trading regularly between $35 and $36 before the recent market correction. With a yield of about 10% and the stock down nearly 15% in just a few weeks, this could be a good rebound candidate.
Here are some key points for SDRL:
  • Current share price: $30.98
  • The 52 week range is $22.40 to $38.49
  • Earnings estimates for 2011: n/a
  • Earnings estimates for 2012: n/a
  • Annual dividend: $3 per share which yields 10%
Pitney Bowes, Inc. (NYSE:PBI) offers mail processing equipment and provides equipment, supplies, software, services, and solutions for mailing. This stock has dropped with the markets and now trades at bargain levels, near the 52 week low. PBI shares were regularly trading around $22, and they should rebound higher once the markets stabilize.

Here are some key points for PBI:
  • Current share price: $19.06
  • The 52 week range is $18.12 to $26.36
  • Earnings estimates for 2011: $2.28 per share
  • Earnings estimates for 2012: $2.30 per share
  • Annual dividend: $1.48 per share which yields 7.8%
Vodafone Group PLC (NASDAQ:VOD) provides mobile communications services including voice, data, Internet, etc., and is based in Europe. Even if times get tough, people are not going to give up their phones, so the sell off in this stock seems to be unwarranted, especially with a yield over 7%. VOD was trading over $28 earlier this year and could rebound back to those levels once European markets have stabilized.

Here are some key points for VOD:
  • Current share price: $26.41
  • The 52 week range is $23.41 to $29.75
  • Earnings estimates for 2011: $2.92 per share
  • Earnings estimates for 2012: $3.25 per share
  • Annual dividend: about $1.92 per share which yields 7.2%
Energy Transfer Partners (NYSE:ETP) provides natural gas pipeline and transportation services, and sells propane in the United States. This stock offers a strong dividend payout and yields over 8%. It is also trading well off the 52 week highs, so the shares look attractive now for both the dividend and potential share price appreciation.

Here are some key points for ETP:
  • Current share price: $43.67
  • The 52 week range is $40.25 to $55.50
  • Earnings estimates for 2011: $2.12 per share
  • Earnings estimates for 2012: $2.67 per share
  • Annual dividend: $3.58 per share which yields 8.3%
Starwood Property Trust, Inc. (NYSE:STWD) is a real estate investment trust that is focused on originating, financing, and managing commercial mortgages. This stock was trading around $20 before the market correction and offers a high yield and rebound potential.

Here are some key points for STWD:
  • Current share price: $17.40
  • The 52 week range is $16.58 to $23.67
  • Earnings estimates for 2011: n/a
  • Earnings estimates for 2012: n/a
  • Annual dividend: $1.76 per share which yields 10%
Data is sourced from Yahoo Finance. No guarantees or representations are made. Hawkinvest is not a registered investment advisor and does not provide specific investment advice. The information is for informational purposes only. You should always consult a financial advisor.
Source: 7 Oversold, High-Yield Dividend Stocks Poised For Sharp Rebounds