Many investors are turning to high dividend stocks to provide a steady income during this bear market. But Paul Moore says you have to be selective to make this strategy work. Companies that are short of cash could be forced to cut dividend payments. That’s why cash flow is the most important figure on the balance sheet for value investors.
Choppy markets have sent dividend yields to “unbelievably high” levels, says Jim Nelson. This makes today a great time to start income investing. Jim says Royal Dutch Shell (NYSE:RDS:A/RDS.B) and BP (NYSE:BP) are two cash-rich companies with consistent dividend payments and “absurdly” high yields right now.
Crude oil prices have tumbled 55% since July. And oil stocks have been dragged down with them. But Eric Roseman says this is a great opportunity to buy into Big Oil at 2004 prices. These companies are flush with cash and pay out attractive dividends. And they are likely to recover over the next 12-18 months as commodity prices find a bottom.
Global stocks are getting mauled again today. Wild market swings are making stock investing a risky business. But Floyd Brown says little-known Master Limited Partnerships (MLPs) provide a steady dividend income and are extremely cheap right now. They have the tax benefits of a partnership, but the liquidity of a publicly traded stock. Floyd gives his three favourite MLP plays in the energy sector.
Investors need a solid defense right now, says Martin Denholm. This means holding high-dividend stocks. Consumer staples and telecoms industries are the best places to cherry pick strong companies. For a lower-risk alternative, try these two high-dividend ETFs (AMEX:SDY, PEY).
Should we follow Warren Buffett back into the stock market? Eric Fry thinks so. But the market is still volatile. More short-term losses are on the cards. Eric recommends six beaten-down companies that offer high yields and the potential for a strong recovery.
The worldwide slump in stocks is dragging down all companies across the board, whether deserving or not.
This is great news for value investors.
Stephanie Grimmett says Tyco (NYSE:TYC) is a prime example of a company caught up in short-term market panic. But its dividend and fiscal outlook are relatively strong.
And its security business will remain stable — and perhaps even benefit — in a recession.