Whenever we are in a bull market, 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. Please note: this usually only works 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%:
- Bristol Myers Squibb Co. (BMY) Ex-dividend date: 10/1/2008 P/E ratio: 20 PEG ratio: 1.91 Yield: 5.8%
- Erie Indemnity Company (ERIE) Ex-dividend date: 10/1/2008 P/E ratio: 18 Yield: 3.8%
- Kimco Realty Corporation (KIM) Ex-dividend date: 10/1/2008 P/E ratio: 31 PEG ratio: 4.25 Yield: 4.3%
- Superior Industries International Inc. (SUP) Ex-dividend date: 10/1/2008 P/E ratio: 42 PEG ratio: 2.79 Yield: 3.3%
- Toronto-Dominion Bank [USA] (TD) Ex-dividend date: 10/1/2008 P/E ratio: 12 PEG ratio: 1.24 Yield: 4.1%
- Waddell & Reed Financial, Inc. (WDR) Ex-dividend date: 10/1/2008 P/E ratio: 16 PEG ratio: 1.08 Yield: 3.1%
- DCT Industrial Trust Inc. (DCT) Ex-dividend date: 10/2/2008 P/E ratio: 271 PEG ratio: 50.62 Yield: 9.3%
- The Bank of Nova Scotia [USA] (BNS) Ex-dividend date: 10/3/2008 P/E ratio: 12 PEG ratio: 1.52 Yield: 4.5%
- Sovran Self Storage, Inc. (SSS) Ex-dividend date: 10/6/2008 P/E ratio: 22 Yield: 6.2%
For more details on dividend definitions, check out definitions of dividend dates. If you like dividend stocks, you should check out the the High Yield Utility stocks and the Monthly Dividend Stocks at WallStreetNewsNetwork.com.
Disclosure: Author does not own any of the above.