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... Read more



Stock name                                 ISIN Last trade   P/E Earnings/Share Dividend/Share Dividend yield
AMERICAN CAPITAL AGENCY
US02503X1054 18.84   0.0 -1.04 0.00 12.92
INVESCO MORTGAGE CAPITAL
US46131B1008 12.99   32.5 0.40 1.60 12.50
TWO HARBORS INVESTMENT
US90187B1017 8.26   9.7 0.85 0.92 11.36
HATTERAS FINANCIAL
US41902R1032 16.33   52.7 0.31 1.80 11.19
PHILIP MORRIS INTERNATIONAL
US7181721090 100.32   23.7 4.24 4.08 4.11
ALTRIA GROUP
US02209S1033 62.93   22.6 2.78 2.26 3.60
PORTLAND GENERAL ELECTRIC
US7365088472 41.18   19.7 2.09 1.20 2.89