Many investors use a trading technique called 'Buying Dividends,' which is the technique of buying stocks before the ex dividend date and selling the stock shortly after the ex date at approximately the same price, yet being entitled to the dividend. This generally works only in rising markets.
If you are interested in buying dividends, there are several stocks in several different sectors and industries to choose from. Remember that in order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can't sell the stock until after the ex date. The actual dividend may not be paid for another month.
All of the following stocks have market caps over $500 million, P/Es below 20, PEGs below 2, and yields over 3%:
- Regions Financial Corporation (RF) Ex-div date: 9/15/2008 Yield: 3.6% P/E: 7 PEG 1.32.
- Bancolombia S.A. (CIB) Ex-div date: 9/17/2008 Yield: 3.5% P/E: 10 PEG 1.20.
- Cincinnati Financial Corporation (CINF) Ex-div date: 9/17/2008 Yield: 5.2% P/E: 15 PEG 1.54.
- Fulton Financial Corp. (FULT) Ex-div date: 9/17/2008 Yield: 5.6% P/E: 13 PEG 1.92.
- General Electric Company (GE) Ex-div date: 9/18/2008 Yield: 4.5% P/E: 13 PEG 1.19.
- Pzena Investment Management, Inc. (PZN) Ex-div date: 9/24/2008 Yield: 4.9% P/E: 7 PEG 0.48.
- Arthur J. Gallagher & Co. (AJG) Ex-div date: 9/26/2008 Yield: 4.8% P/E: 17 PEG 1.78.
- Sterling Financial Corporation (STSA) Ex-div date: 9/26/2008 Yield: 3.8% P/E: 10 PEG 0.77.
- Willis Group Holdings Limited (WSH) Ex-div date: 9/26/2008 Yield: 3.1% P/E: 13 PEG 0.99.
Disclosure: The author does not own any of the above.