3 Good Looks at High Dividend Stocks
Those thinking about investing in high dividend stocks need to be diligent about their research. The best dividend rate, or payout amount, will not guarantee a profitable investment. Some companies are wooing investors with big dividends. As always, a discerning look at a company financial statement will reveal a lot about their investment potential. Look also at the company’s stock price over a year. If it has dropped significantly over that time then keep looking. What good is, for example, 10% dividend yield if the company has lost 30% of its stock value? Unfortunately, in looking at the high dividend paying stocks, you see this annoying trend frequently.
Resource Capital Corporation (RSO) is the company that I feel is a good investment. Their dividend yield is at 15.18% they are down from their 52 week high, yet they are in the middle of the spectrum not just a notch above the low for that period like other high dividend paying stocks . At the end of the year the stock will be roughly worth what you paid for it and the dividend will always be a good one. Though there has been volatility, these high dividend stocks are very attainable and their main company assets, loans on property, have already weathered the worst of the recession.
Hatteras financial Corp (HTS), when looking at the 6 month outlook, has done nothing but climb in value. Couple this with the fact that they have a great dividend yield and you have what looks like an excellent investment. Looking over the past 1yr you find that the stock was artificially low in October and has been climbing out since then. Now it is close to its expected value. Though a speculation period for this stock is over, the dividend looks very solid. This should be great for a year.
American Capital Agency(AGNC) is showing all the things that make a stock a great investment. They are at the top of 52 week climb in value; their 5% dividend most would say is a good return on a great stock. This company is poised for growth with huge investment potential and government guarantees on principle and interest payments.
It’s tempting to look at a stock for the investment potential instead of the high dividend paying stocks when you start to do your analysis. Remember that a fair amount of time at a certain value, and a commitment to a nice yearly dividend, is what you need in high dividend stocks portfolio. Much of the investment world does not want to look anymore than 6 months back, or try to project any more than 6 months into the future. In the uncertain market we’re in that is understandable. For a good dividend paying portfolio do your homework, and feel good about a year in a certain stock.