Two Ways To Play: The S&P Dividend Snip
Strengthen your portfolio in good times and bad.
Senior analyst Howard Silverblatt said the prospects for dividends are extremely cautious; he specifically highlighted financial stocks. The firm sees index members paying $28.05 a share, down $0.80 from S&P's previous estimate, and up just 1.2% from a year go.
Silverblatt also noted S&P 500 companies have announced 35 dividend cuts totaling $31 billion for all of this year. In the previous 5 years, there were just 12, totaling $3.1 billion.
For more context on the economy, see Professor Depew's Five Things You Need To Know.
From the Bull Pen: Consider Verizon (VZ) for an upside play. With relatively healthy cash levels, a 6.5% dividend yield, and the stock already near its 52 week low, it may be poised to pop.
From the Bear Cave: Bears are wary of high yielding financials stocks. One example is possibly Citigroup (C) which yields 4.51%. This stock shouldn't even be paying a dividend and bears would be wise to steer clear.
Actionable ideas, instant analysis. Real-time from bell to bell.
Minyanville's Buzz & Banter - 14 day FREE trial
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter