What stock/mutual fund would you recommend for maximum dividend return?

Discussion in 'Stock picks and trading strategies' started by White Dayton, Mar 6, 2012.

  1. White Dayton

    White Dayton New Member

    Looking to park about 100k long term, and collect the dividend income. I'm looking at OHI for this purpose. I was wondering if someone might recommend something better?
     
  2. yellow4yield

    yellow4yield Member

    The thing with dividends... Are they going to continue to pay dividends and the same dividends in the future?

    For that you can find your stock chart on google or wherever, then look at 5 years. And you can see that your stock has consistently been paying dividends for the last 5 years. Good!

    You can use a stock screener like the following...
    http://www.google.com/finance#stockscreener

    And then enter say 15 in the Div yield (%) MIN window. Then that will give you a list of stocks below which have a 15% dividend yield or higher...

    BUT... Click on some of these, then 5 year, and you will notice they have NOT paid any dividends until just recently and that is a one big dividend! And they may be doing that just so they can drive up the price of the stock. No consistent payments of dividends!!!!

    Shame, Shame, Shame!

    So that is only the beginning. Find a company which has consistent dividends AND is currently making money (look at their financials).

    AND read all the news you can about the industry that company is in.

    If they make VCR video tape players, their future might not look very bright (as everyone is now buying DVD's!)

    And some things no one can predict. You can ask everyone here and pay several investment advisors. No one can predict the future. For example suddenly the U.S. Congress may decide to cut defense spending and certain companies will no longer make a profit as a result. A country could go to war. Whatever! Things happen. And that may mean no more dividends or the price of shares in a company may suddenly drop.

    Anyway research all you can before investing. And look for "volume". If the stock is seldom traded, you will drive up the price buying 100K and pay more. And will have trouble selling.

    I always like to say people are not going to stop eating and they will need to fill their cars up with gas. Those are "needs". But that does not mean a company in those areas can't go broke! For example BP oil company has a large bill on its hands due to an oil spill...
     
  3. Doodman

    Doodman Member won penny contest 7x won weekly contest 3x

    I'm assuming you know how to invest so I'll just answer your question.

    REITs and Utility Companies tend to have the highest dividends. OHI is a Healthcare REIT. It doesn't have great fundamentals but it could do. Try to diversify.

    You could look into stocks like PMT, MTGE, PSEC, and NCT just to name a few.
     
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