Dividend-News

Daily dividend news for investors in dividend stocks


7 High-Dividend Stocks: Are They Safe?

Published Mon, 19 Dec 2011 10:43:58 -0500 on Seeking Alpha

Is it time to flee to safety? With the economic and political climates only becoming more tumultuous, I have been paying closer attention to dividend stocks recently. We all know about the blue chip dividend companies, but there are attractive companies with high yields that are going ex-dividend every week. This strategy can work in one of two ways: either you buy before the ex-date to receive the dividend, or buy after if the stock declines far below the after-tax amount of the dividend. Buying the stock to receive the dividend is intuitive, but many have contacted me requesting further details on the second strategy. Investopedia has a great example of how this works. To explain this, I will use AT&T (T) as an example. AT&T declared a $0.43 dividend to shareholders of record on October 10, 2011. On the ex-dividend date, the stock price should decline by the after-tax...

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Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
INVESCO MORTGAGE CAPITAL 10.72   0.0 -1.05 1.60 14.29
HATTERAS FINANCIAL 12.21   0.0 -1.46 1.80 14.25
TWO HARBORS INVESTMENT 7.36   11.0 0.67 1.04 13.83
AMERICAN CAPITAL AGENCY 17.77   0.0 -2.08 2.40 13.49
PHILIP MORRIS INTERNATIONAL 89.72   19.3 4.65 4.08 4.56
ALTRIA GROUP 60.12   22.5 2.67 2.26 3.78
PORTLAND GENERAL ELECTRIC 39.95   19.9 2.01 1.20 2.98