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10 Highest Dividend Stocks



December 09, 2010 – Comments (1) | RELATED TICKERS: NLY , CYS , SCD

You'll find that the stocks below are sporting some pretty nice dividends, but don't just dive into one of the stocks listed below without doing first the necessary due diligence required. With the recent market rally, a lot of dividends have been diluted due to price appreciation, so the best strategy going forward is to watch these stocks and wait for a pullback in the ones that you are targeting specifically before putting any capital to work.

On a side note, I would say this particular stock screen elicits a lot of controversy about the quality of the dividends, and whether they are dependable. I realize that not all of these companies are going to be able to keep the high dividend that they are paying out - I'm just trying to give you some ideas for you to generate fixed incomes in a bad economy. I can tell you this though, stocks such as NLY are fairly good divi-plays and make for a great covered-call strategy.

So caution is urged on EVERY ONE of the stocks listed below. Heck, every trade in general you make requires you to take caution. Oh, and if it trades below $5 or on a perpetual down-trend, I left it out of the screen results.

Here are the 10 Highest Dividend Stocks.



1 Comments – Post Your Own

#1) On December 09, 2010 at 2:28 PM, ikkyu2 (98.55) wrote:

Here's another reason for controversy: apart MGIC, none of these stocks pay a "dividend" as that term is generally defined.  REITs are mandated to pay out 90% of their profits annually - there is no discretion on the part of management about this - and these payments are not treated as dividends for tax purposes, but rather as unearned income.  The closed-end equity funds and mortgage investments like NLY likewise are not paying out a dividend as that is generally understood, rather they are paying out a portion of interest income on their loan holdings.

A dividend is a discretionary payment to shareholders made out of a business' operating cash flow at the behest of management, and it is taxed under a special rate.  When talking about dividends, stocks such as the ones you cite shouldn't be mentioned - it's apples and oranges. 

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