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Two Unbelievably High Dividend Stock Plays
By: Irwin Greenstein   Friday, October 31, 2008 2:52 PM

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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.

More from Penny Sleuth:

Here at Penny Sleuth, we feel a balanced portfolio should include more than just penny stocks. Penny stock investors are more aggressive than most. We like fast-growing groundbreaking stocks with technologies and catalysts that can double their share price. But we also feel that smart investors diversify their portfolios, especially in today’s market.

If you’re sick of the gloom and doom permeating markets right now, you can find solace in one investment… Well, it’s actually a type of investment. I’m not talking about options or shorting or even bonds. We still like to buy low and sell high, but we also like our investments to pay us as we go.

Income investing is a great way to do that. It gives you the chance to take cash out of your investments without selling shares. One way to successfully do this, while staying aggressive, is to reinvest your dividends in penny stocks. That way, you have the best of both worlds: Security and potential money multipliers.

There’s never been a better time to start. With the recent thrashing in the markets, many companies are sporting unbelievably high yields.

More Income Than Ever Before

The S&P 500 is now sporting a yield of 2.65%, up from its low of 1% in 2000. The same goes for the Dow, which is now at 3.74%, up from its 2000 low of 1.5%. These yields may not sound high to you, but they both factor in non-dividend paying companies.

We are seeing enormous yields everywhere we look. Others are too…

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How you could collect huge “Stealth Dividends” that 99% of stocks will never pay…

A veteran analyst proves how you could gain a fast 113% — and as much as 739% over time — on one of the few companies that can fully capitalize on this share-boosting “secret”…

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Warren Buffett, you might have heard, is buying up depressed stocks. But instead of buying just any old ones, he’s investing his hard-earned money in these high yields.

The Oracle of Omaha recently bought up $5 billion worth of Goldman Sachs (NYSE:GS) preferred shares. For his gutsy investment, the company is going to send Buffett a check for $500 million every year.


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The above story is the opinion of the author only and it does not reflect iStockAnalyst opinion. Further, the author is not personally advising you regarding the suitability of the story for your investment needs. In no event iStockAnalyst will be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from or arising out of, or in connection with the use of this information. Please consult your investment advisor before making any investment decision.
  
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