What are some of your favorite dividend yeidling stocks?

[Super_Geo]

What are some of your favorite dividend yielding stocks that have stable dividends? I'm looking for something that will give 6-10% returns without too much risk.

What I've been doing thus far is buying Canadian chartered banks (BMO and CIBC currently yields around 4-5%) and then selling out-of-the-money calls on them... a very simple covered call strategy that returns around 6-7% depending on where the calls are, but not very risky.

However, I am worried about the Canadian bank's exposure to the housing industry, so I want to diversify... open to anything. I also don't want anything that is too risky as I am in numerous junior energy companies already.

Let's hear some suggestions!

[mazdavirgin]

http://www.google.ca/finance?q=TSE:YLO

Yielding close to 10% atm and it's canadian so you can keep it in your TFSA and not get owned by the dividend taxes on US exchange based stocks.

[TheRealTimHorton]

NYSE:NLY

Annaly Capital Management

14.5% Yearly, very stable price action in stock.

[89coupe]

PPL.TO
EIT-UN.TO

[e36bmw///]

nm

[yellowsnow]

ARX.TO - Arc Resources. very well managed company and has consistently paid dividends, and their value has increased 20% last year.

[Euro_Trash]

Arc Resources - ARX
Student Transportation - STB
Pembina Pipelines - PPL
Medical Facilities - DR.UN

[ExtraSlow]

SPB
REI.UN
PBH
AVF.UN
RSI

SXP or RYL are a bit riskier . . . But worth looking into.

[ExtraSlow]

Sorry, forgot that AVF.UN is now just AVF.

Also like:
GDL
CPG
PBN
PPL

I fucking love dividends.

[TheRealTimHorton]

Originally posted by ExtraSlow
I fucking love dividends.

If you have discipline, optionable stocks are way better than dividend paying stocks. :D

[roopi]

Originally posted by TheRealTimHorton


If you have discipline, optionable stocks are way better than dividend paying stocks. :D

Many dividend stocks are optionable stocks so you have the best of both worlds.

Current Dividend Stocks for me:

AVF
RIE.UN
BT.UN
MFC (small yield compared to the others)

[littledan]

subscribed

[TheRealTimHorton]

Originally posted by roopi

Many dividend stocks are optionable stocks so you have the best of both worlds.

Options are priced partially in relation to dividend yields... If you can find a decent dividend paying stock (>5%) with good option premiums, show it to me. And the options have to be liquid.

Here are two examples, I'll even use the stock I suggested.

Annaly (NYSE:NLY), 14.3% Dividend, APR 2011 ATM Call has premium of 0.04. Being generous, we will say this is 1 month until expiration and you could receive this premium every month. 0.04/17.80 = 0.22% monthly gain, or 2.7% yearly.

14.3% + 2.7% = 17%/year via option premium and dividend

Altria Group (NYSE:MO), 6% Dividend, APR 2011 ATM Call has premium of 0.30/26.00 = 1.15% monthly gain, or 13.8% yearly.

6% + 13.8% = 19.8%/year via option premium and dividend

Why the difference? Simply put, Altria is not as stable as NLY in terms of volatility and price action. Higher risk, higher premium. However, this should be irrelevant if you plan on holding the stock anyways, which we are doing because that's the whole point of dividends (long term cash flow portfolio)

You would want the highest %/year in combination of dividends and options, but the raw highest % gainers in terms of option premium will not pay dividends.-->thus the point I'm trying to make.

Take Netflix for example. If you sold front month options month over month: 12.50 / 207 = 6.03%/month = 72%/year. Conditional upon whether NFLIX maintains high premiums, which I cannot see why they wouldn't.

Visually I picture it as buying a home and renting it out. You pay your big money (cash for stock) to buy the home, and you get your monthly income (option premium). Whether your home drops 20% in value you don't care because you're in it for the long haul. You can "wait it out".

[dawerks]

The problem with US dividend stocks is that you are basically fighting the headwind of a strong CAD. It was .66 now it's 1.02 that would absolutely destroy any gains you would have in dividend paying stocks.

Second, you're forgetting, you have to pay taxes on the dividend and you can't control that like capital gains.

I like dividends because the stocks are usually fundamentally strong, but I prefer capital gainers that LATER pay dividends. Basically dividend paying stocks means you missed all the juicy capital gains.

Buying just for dividends is a mistake IMO. It's the wrong way to invest. If you can wait it out, then I want to wait for a 2 to 10 bagger, not for a 5%-7% gain that's taxed every year.

[ExtraSlow]

Good point on the taxation. I do hold most of the dividend paying stocks inside my registered portfolio. Same can be said of Bonds.

[assram]

Originally posted by dawerks
The problem with US dividend stocks is that you are basically fighting the headwind of a strong CAD. It was .66 now it's 1.02 that would absolutely destroy any gains you would have in dividend paying stocks.


What about holding the stocks in Questrade where you can buy/trade in USD funds?

[sputnik]

Originally posted by assram


What about holding the stocks in Questrade where you can buy/trade in USD funds?

You still eventually have to convert your USD into CAD if you want to spend it.