How to Find Stocks That Pay Great Dividends
There are many stocks and mutual funds that pay hefty dividends and can be generating a lot of money in your investment portfolio. After paying out huge dividends, several of these stocks yield up to 20% yearly...that's about 5 times what you'll get from a CD or savings account! This article explains how to find these stocks and start producing some residual income in your portfolio.
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Instructions
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First, try using an online stock screener such as the ones on Yahoo Finance and MSN Money. These screeners will allow you to search through thousands of stocks and find ones with a certain dividend yield. Most of them will also let you sort from highest to lowest yield too. These screeners are a great place to start when looking for dividend paying stocks. A link to the Yahoo Finance Stock screener is at the bottom of this page.
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Check out websites such as Yahoo Finance, MSN Money and Motley Fool under the "Investing" tabs. Most of these sites have lists of the best dividend paying stocks, Mutual Funds and ETF's. Not only will you get expert advise about a stock, you can also get detailed information on that particular stock's dividends and recent year yields. The expert may also provide, in an article, why they like the stock and why it's a safe investment.
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Check out some mutual fund company websites. You can look into the stocks, mutual funds, and ETF's of companies such as Alpine, Blackrock, Dreyfus and Oppenheimer. Most of these websites have a category for mutual funds and stocks for "income" and "dividends." These mutual funds and stocks tend to be very safe investments and payout great dividends, some even tax free.
Two Alpine funds in particular, AOD and AGD, both pay a monthly dividend and are currently yielding around 20%. AOD pays a monthly $.12 dividend, and AGD pays $.11 monthly (in 2008, they were paying $.18 and $.17!). Both of these are closed-end mutual funds and considered safe investments. For example, if you invest just $3,000 in AOD, you would be getting a $50 dividend every month.
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There are several other stocks or mutual funds that pay large dividends. PHT (Pioneer High Income Trust) currently pays a $.138 monthly dividend and is yielding around 17%; CHY (Calamos High Income) pays $.085 monthly/10% yield; BHY(Blackrock High Yld) pays $.044 monthly dividend/10% yield. ATT (AT&T) pays $.39 quarterly dividend/6% yield. There are also some high yielding, but high risk, energy stocks; PGH, HTE, PWE. These funds tend to change their dividend payout frequently, so keep an eye on them for a good opportunity.
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Another method to find stocks, is to simply search for "income" or "dividend" in the Google Finance symbol search bar. If you type the word "dividend," a list of all the stocks, mutual funds or ETFs that fit that category or contain that word will pop up.
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Tips & Warnings
Consider consulting with your broker before investing in a stock. They may be able to recommend a good buy as well.
