High Dividend Yield Stocks

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  1. #1

    Join Date
    Jul 2005
    Location
    Texas
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    239

    High Dividend Yield Stocks

    I am looking at adding some high dividend yielding stocks (6%+) to the portfolio. I am particularly looking at NGPC, ARCC, ACAS, and PGH. Anyone have any experience with any of these or similiar companies? I am looking for reasons not to buy. They all (except NGPC) have low P/E ratio with a nice divedend. Especially PGH which has 13% dividend yield. As far as the prices they don't seem to move very much but have more perceived upside than downside. Thoughts?


  2. #2

    Join Date
    Nov 2005
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    Cramped island
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    ya why not.
    but just be careful with
    1. tax implication. not sure if they are taxable for you.
    2. whether dividend yield is regular or special. some companies give out dividend more than their regular free cashflow...
    3. are there any regulatory constraint on the company, e.g. if natural gas price is to shoot up to double current cost, are the companies allowed to increase their energy charges to consumers.

    other than that, sorry i am not familiar with the companies


  3. #3

    Join Date
    Jan 2006
    Location
    Hong Kong
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    High Dividends are gone and they are not coming back.

    Here is an old article from forbes about that.
    http://www.forbes.com/2002/04/03/0403dividends.html

    Today I am quite happy with a yield of 3.5% or more.

    I don't think one should invest in a company solely for the dividend. You may as well buy that company bonds if it is the case. However, "rock solid company" with growing dividends year on year are good defensive stock.

    Good luck.


  4. #4

    Join Date
    Nov 2005
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    actually don't quite agree.
    go take a look at DJ Stoxx 50 index versus DJ Stoxx 30 Dividend Index. You'd see something interesting. on the same account, its a phenomenon that u can trade upon if you have the means.