sahtt

The market could go up, down, or nowhere over the next several years. Nothing is off the table. However, this creates a good case for a particular set of stocks I normally don't invest in but because of this unique environment I've been doing some buying.
Half the money is putting cash to work and half the money is the 1/3 of the NOV and RIG positions I sold at 33~ and 84~ respectively when the oil service sector popped last week.

Specifically, I bought BAC @ 20.95 (6.1% at entry), WMI @ 27.88 (3.9% at entry), KMP @ 50.05 (8.15% at entry), BP 40.55 (8.3% at entry), and PWE at 14.44 (27.4% at entry).

My entry points points are setup strictly by technical analysis. If you pull up the charts it might look like I'm a genius, but unfortunately that's (probably) not the case. Just find the last relevant low, put a buy limit order a nickel to a quarter above it depending on what's applicable, and don't change it no matter what. I have 1/3 of each of these positions established at this point and will make it an even 50% if we go moderately lower. I won't buy anymore than that in case we go substantially lower without put/inverse ETF/etc. protection. Even then, I still have a decent amount of DUG, some of which I sold friday, but I need EEV to come back down asap so I can put that hedge back on.

The yield must be considered with the firm's ability to pay. Understanding if the firm has the ability to sustain the dividend under any potential circumstance is not easy. That's why you need a higher dividend for BAC and BP than you do for WMI in order to make it a good risk vs reward scenario. Although these dividend stocks are only about 10% of my portfolio with an expected/potential 25% depending on how the stock market behaves, it will provide some income if we trade in a range. You don't want to transfer all your funds into these because the upside capital appreciation wise is simply not going to be proportional to stocks without dividend support who are down 50-90% right now.

What dividend stocks have you guys been accumulating/considering and how will their dividend be supported if we trade at DOW 5-6000 for a year or two, with all the connected issues?

Cyberous

BAC: got in at 22.2 x 100 on 10/22 put a second order in on 10/24 (100) for 20 but didn't hit, and 21.00 in AH but didn't hit. I think I'm still going to have a chance in this crazy market.

I sold off most of my TIN, a while back (glad I did.) since it went from 19.x to 6.x in less than a month.

lOOkatme

The dividend paying stocks that I own are

PWE
HGT
Canadian oil sands
PCU


I have been accumulating these on this large pullback....I also own

TEF
CHL

But I haven't bought anymore of these on the pullback.

sahtt

There are a few riskier ones out there that I might consider if they go lower. FCX, PTR, etc. But these stocks don't really have a bottom established yet and continue to fall. I do like PTR at 60 with a 8% yield better than RIG at 60 with no yield.

lOOkatme

I used to like PTR...but with the government being so involved....I dunno. Its lost its luster for me.

FCX is indeed a good company....and probably not a bad bet in the long run.

I think Copper is a pretty solid bet for a long term investment. Its widely used in about everything from water pipes in houses to electric motors, to electrical devices and even in alterntive energy technology.

Plus, like most seasoned investors usually site.....buy companies that benefit from technology improvements, not the technologies themselves. And I think most commodity producers fall into this category.

as extraction processes and equipment can reduce costs to pull commodities out of the ground....the better these companies will perform.


I have been trying to find a way to play agriculture....still haven't found a GREAT way to play it.

I have been looking at MOS and POT.......but I would really like a high yield REIT that leases land for agriculture.

aklucsarits

PM and INTC - both should continue to have double digit growth, even in this environment. They both have high very high profit margins. Intel in particular has tons of cash, and almost no debt.

I also like GE. Although the stock still has some downside, they are yielding 7% now. I think they will survive this intact and will thrive on any Federally sponsored alternative energy and infrastructure projects that are likely forthcoming in the next Presidential administration.

I don't believe that all these banks (including BAC) will be able to keep paying dividends at the levels they are, especially if they keep taking loans from the Fed and capital investments from the Treasury to keep them up.

Andrew

PearlwhiteS2k

Canadian banks are safe and have a high yield dividend BMO, BNS, RY,CM, TD. Crescent point energy and Canadian Oil sand also have a nice decent dividend.

I'm looking to buy some BMO and TD banks

zeiss

Technically, Canadian Oil Sands doesn't yield a dividend. It is an income trust. The latest yield is unsustainably high, and was set when the prices of oil peaked during the summer. I strongly suspect that the next time the rate is set, it will be much, much lower, and more along the lines of its tradtional yield, in case anyone was thinking of putting money into this.

BMO and TD have good yield, but if you are looking for financial security, BNS is in the best financial shape of all Canadian banks, and is worth consideration.

Vanishing Point

Whatever stocks you decide on, put a portion of (or all) of the dividend into reinvestment in that stock. Grow your portfolio.

aklucsarits

Also look at some of the big Pharma names for stable dividends. Their cashflows are strong. People will need to keep buying medication regardless of the economy. And the big names generally make paying their dividends a priority.

Andrew