During a bull stock market, some 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 bull 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, and yields over 3%:
- Harvest Energy Trust (HTE) Ex-div date: 10/20/2008 Yield: 19.6%
- British Sky Broadcasting Group plc (BSY) Ex-div date: 10/22/2008 Yield: 3.6%
- Royal Bank of Canada (RY) Ex-div date: 10/23/2008 Yield: 3.9% P/E: 14 PEG: 1.72
- Bank of Montreal (BMO) Ex-div date: 10/29/2008 Yield: 5.8% P/E: 13 PEG: 1.65
- ConAgra Foods, Inc. (CAG) Ex-div date: 10/29/2008 Yield: 3.9% P/E: 19 PEG: 2.14
- NiSource Inc. (NI) Ex-div date: 10/29/2008 Yield: 6.1% P/E: 15 PEG: 4.88
- PNM Resources, Inc. (PNM) Ex-div date: 10/29/2008 Yield: 4.4%
- Zenith National Insurance Corp. (ZNT) Ex-div date: 10/29/2008 Yield: 5.2% P/E: 8 PEG: 1.66
Disclosure: Author does not own any of the above.