With interest rates at historical lows there’s lots written about how to increase the return on your investments and cash. One of the hottest topics is investing in dividend stocks for income. Now, don’t get me wrong, I like dividends as much as the next person, but they are not without their flaws. The following is a guest post by Barbara Friedberg, editor-in-chief of Barbara Friedberg Personal Finance.com.
5 Good Dividend Plays
November 25, 2009 By 7 Comments
With the recent run up in the stock market, it is becoming increasingly difficult to find solid dividend plays. Below is my list of some of the best high yielding stocks.
AT&T (T), Verizon (VZ) – These two telecommunications giants both yield over 6%. Verizon currently trades at $32 per share and has a robust dividend of $1.90 per share. AT&T trades at $27 per share and pays out $1.64 per share. Both companies are trading at 12 times next years earnings estimates. If I had my pick I would invest in Verizon and its growing subscriber base.
British Petroleum (BP) – BP has long been my favorite oil stock since it was priced in the low $30′s. The oil conglomerate was yielding over 10% back in March. BP now trades for just under $60 a share and still yields 5.7%. I have owned BP for a few years and will continue to own the stock for its healthy dividend.
Kraft (KFT) – Although the stock has done virtually nothing over the past five years, Kraft is more then just mac and cheese. Kraft does has a solid dividend yield of 4.3%. Kraft is priced at $26.85 and pays $1.16 to its shareholders.
Eli Lilly (LLY) & Bristol Meyers(BMY) – These 2 pharmaceutical generate large amounts of free cash flow and yield 5% and 5.3% respectively.
Warren Buffett’s Dividend Stocks
June 14, 2009 By Leave a Comment
Good post from Dividends Value on Warren Buffett and his penchant for investing in dividend stocks.
Some of my fellow dividend investors have accused Warren Buffett of being a closet dividend investor. I won’t quite go that far, but there is significant common ground between dividend and value investors. With that said, let’s take a close look at Mr. Buffett’s most recent 13-F filing with the Securities and Exchange Commission.
Comparing Berkshire Hathaway’s (BRK.A) December 31, 2008 13-F with its March 31, 2009 13-F, I made the following observations for Q1/2009:
The full post can be found by clicking the link here.
