Buy Like Buffett

While the recent market drop has not been good news for holders of equities, it has created some incredible dividend yields for investors seeking income. All of these stocks on this list are yielding returns greater than 6%. They are all stable companies that have historically supported their dividends. These 5 stocks are currently paying out better dividends than most bonds.

1. BP (BP) has been pummeled and shares are just 50 cents above their 52 week low. Shares are so low that BP is now yielding 7.5%. This is enough to make me add shares to my current position despite all of the negative publicity.

2. Verizon (VZ) is now yielding a ridiculous 6.8% dividend as of the market close on Friday. This is just too tempting to pass up. Even if the stock is stagnant for the foreseeable future, where else are you going to find a 6.8% return on your money?

3. Altria (MO) is the ultimate guilty pleasure stock. The cigarette manufacturer is now paying investors 6.8% to hold its shares.

4. AT&T (T) is right behind Verizon with a generous 6.7% dividend yield. It appears that Verizon is not the only telecommunications company that is richly rewarding shareholders.

5.Total SA (TOT) looks like a buy. Shares have been unfairly punished despite a strong earning’s report this past month. The stock is trading at just 7 times 2011’s earning’s estimates and is paying out a hefty 6.6% dividend to shareholders. This is a great stock for investors that want oil and gas exposure without the risk of a BP.

Disclosure: I do own shares in BP.

1. American Ecology (ECOL) - I have bought shares of this small cap waste management company in the past for its growth potential but now American Ecology has become a value play. American Ecology has excellent growth prospects over the next five years with a projected 20% growth rate and the company has very little debt. The stock now sports a dividend yield of 4.82%. You can get paid a healthy dividend while waiting for the stock to rise.

2. Brookfield Infrastructure Partners (BIP)-Brookfield Infrastructure Partnership is a limited partnership that was spun off from Brookfield Asset Management in 2008. BIP owns and operates all of the infrastructure assets for Brookfield Asset Management including electricity transmission systems, timberlands and social infrastructure. Brookfield shares are selling for $16.63 and the stock is currently yielding 6.6%.

3. American Software, Inc. (AMSWA)- American Software is a small $100 million dollar company that develops application software that delivers enterprise management solutions. American Software has been profitable for 35 consecutive quarters and the company has no debt. The company is buying back shares which should only help the long term value of the stock. American Software is currently yielding 6.1%.