cizastro (21.53)

Nasty market dividend plays....

October 03, 2011 – Comments (2) | RELATED TICKERS: NLY , HTGC , NMM

The following are some stocks that I'm going to be closely following as the market continues its rampant sell-off:

1) NLY - Annaly Capital Management has proven that they can weather the storm and pay out an incredible 14+% dividend.  I will be watching this one as the market continues to fall.  The higher the yield you can get on this one, the bigger the winner you can end up with.  Not too shabby having a stock that pays out 14% in a market like this.

2) NMM - Dry-bulk shipper considered one of the best in the industry.  Pays out a great 13.2% dividend at the time of this post.  If this one goes under 10 you should load up like crazy.  Hell, these prices right now are pretty damn good but with the market potentially going back to 2008 levels (or close) you may be able to get in at a better price/yield.

3) HTGC - Another very well-run company that pays a large dividend.  I invested in this company back in 2008 at $5.03 a share and stupidly sold at $7.50 and it continued to rise into the $11 range.  Not only did I miss out on a double, but I would've been collecting about 17% in dividends as well.  This stock currently pays a 10% dividend, but if it drops lower you could lock in a better yield as well as having a great potential upside in stock value.  I could easily see this stock return to the $10-11 range after the economy begins showing signs of recovery.  

Also reading from the always-wise TMFSinchiruna, precious metals appear to have a ton of good plays right now as well.  As the market continues to nosedive, precious metals will probably appreciate and could be a good way to fight the recession.  Most of them don't pay dividends, so I chose not to focus on those stocks for the purpose of this post.  I am in PPP and ALXDF currently.

Feel free to share other dividend all-stars that your portfolio will be using to combat these crappy times in the stock market.