Dividends Are King
Aug 8th, 2007 by Shaun Carter
This post is dedicated to some of the best high-paying dividend stocks in the stock market right now. These companies represent large caps primarily from the banking sector, an area of the market that has been beaten down lately because of the sub-prime mortgage fears in the market. I’m not sure where the bottom in the banking sector is, but I don’t believe it will fall much lower - some banks have already suffered 30% losses in the past year. The banking meltdown is perfect for new investors to get in at such a bargain price and be rewarded with 4%+ dividend rates.
Phillip-Morris (MO) -4.1% Dividend
Citigroup (C) - 4.7%
Washington Mutual (WM) -6.6%
National City Corp (NCC) - 6%
Bank of America (BAC) - 5.4%
Pfizer Inc (PFE) -4.9%
I’ll be covering each of these stocks individually and in depth over the next week and discussing their pros and cons. While these companies all pay high dividends, the banking sector is very uneasy right now and some of the banks may be better bargains than others. The key point to remember with dividends is that even if a company pays a great dividend, if it loses 50% of it’s value in 12 months from when you purchased it, the dividend wouldn’t matter much. It’s easy to get blinded by the dividend, but it’s still just one portion of the analysis needed to make a buying decision.
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