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If you are interested in buying dividends, there are lots of stocks in several different sectors and industries to choose from. Keep in mind that you have to buy the stock before the ex-dividend date in order to be entitled to the dividend, and you can't sell the stock until after the ex date.

Buying dividends is the technique of buying stocks before the ex date and selling shortly after the ex date at roughly the same price, yet being entitled to the dividend. This generally works only in bull markets.

All of the following stocks have market caps over $500 million, PEs below 20, PEGs below 2, and yields over 2%.

ArcelorMittal (MT) Ex-div date: 9/2/2008 Yield: 2.0% PE: 8 PEG: 0.46

Cohen & Steers, Inc. (CNS) Ex-div date: 9/3/2008 Yield: 3.1% PE: 19 PEG: 1.62

Kimberly-Clark Corporation (KMB) Ex-div date: 9/3/2008 Yield: 3.7% PE: 15 PEG: 1.97

The Pepsi Bottling Group, Inc. (PBG) Ex-div date: 9/3/2008 Yield: 2.2% PE: 13 PEG: 1.42

PepsiCo, Inc. (PEP) Ex-div date: 9/3/2008 Yield: 2.4% PE: 20 PEG: 1.78

Sealed Air Corp. (SEE) Ex-div date: 9/3/2008 Yield: 2.0% PE: 16 PEG: 1.45

The Stanley Works (SWK) Ex-div date: 9/3/2008 Yield: 2.6% PE: 12 PEG: 1.07

V.F. Corporation (VFC) Ex-div date: 9/5/2008 Yield: 3.0% PE: 14 PEG: 1.32

Ameren Corporation (AEE) Ex-div date: 9/8/2008 Yield: 6.1% PE: 13 PEG: 1.86

Constellation Energy Group, Inc. (CEG) Ex-div date: 9/8/2008 Yield: 3.0% PE: 14 PEG: 1.16

Pepco Holdings, Inc. (POM) Ex-div date: 9/8/2008 Yield: 4.4% PE: 14 PEG: 1.39

Reynolds American, Inc. (RAI) Ex-div date: 9/8/2008 Yield: 6.0% PE: 11 PEG: 1.58

The Travelers Companies, Inc. (TRV) Ex-div date: 9/8/2008 Yield: 2.7% PE: 7 PEG: 0.85

TELUS Corporation (TU) Ex-div date: 9/8/2008 Yield: 5.0% PE: 9 PEG: 0.63

For more details on dividend definitions, check out definitions of dividend dates.

Author owns PEP.

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  •  
    So let's see here. If I by all of these stocks, grab all the dividends and then sell the stocks, I will make around 0.9%. With the market jumping around 1% to 2% a day what a wast of time that would that be.
    2008 Aug 20 01:59 PM | Link | Reply
  •  
    go to school-buy is spelled buy,not by
    2008 Aug 20 03:14 PM | Link | Reply
  •  
    git a lief
    2008 Aug 22 12:18 PM | Link | Reply
  •  
    There are viable concepts for "buying the dividend". They should be studied before pursued or one possibly won't maximize the profits--if any.
    2008 Aug 31 03:48 PM | Link | Reply
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