What are some stocks that pay the biggest dividends?

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  • Mike
    Lv 6
    9 years ago
    Favorite Answer

    Picking companies with very high dividends is a recipe for disaster. Companies that pay 10% or more dividends are generally hurting financially and will likely suspend dividends and may go bankrupt.

    If your looking for dividend plays, you should look at blue chip stocks with good dividends. Some are Pfizer (PFE), Eli Lilly (LLY), Bristol Meyers Squib (BMY), Consolidated Edison(ED), Duke Energy (DUK), Royal Dutch Shell (RDS.B), Chevron (CVX), Intel (INTC), Phillip Morris (PM), Altira (MO), Dupont (DD), or the ETFs for large cap international plays FEZ and DWX.

    All of the above currently pay dividends between 3.5%-6% dividends.

    However, do your homework carefully since all will not be great picks.

  • Anonymous
    9 years ago

    As someone has already pointed out, stocks paying a REALLY high dividend (since dividend is typically a fixed dollar amount, yet expressed as a percentage) are typically just about to go out of business, or stop the dividend (which will cause the price to plummet), so if you really want dividend-paying stocks without that much risk, you could do worse that stick with the Dow stocks, all thirty of which pay a healthy dividend.

    One technique to "grow" your portfolio is to buy the ten (or five) "highest-dividend-yielding, lowest price" Dow components in equal dollar amounts and then hold them for 13 months (to avoid the short-term gains tax rate), then sell them and use the proceeds to repeat the process with whichever ones meet that criteria then.

    Called the "Dogs of the Dow", this method has beaten many (if not most) other investment strategies for a looong time....

    http://www.dogsofthedow.com

  • ?
    Lv 6
    9 years ago

    As a rule, the higher the dividend, the higher the risk. Look for stocks whose dividend is less that their estimated earnings per share. KMP and NLY are two that are good today, but who knows what tomorrow will bring.

    Mike gave you a list of good stocks.

  • Anonymous
    9 years ago

    I think since the markets are volatile no one can give you the right answer for this question. However you can gather information about the performance of various companies in the Indian Capital Market by downloading reports from Mansukh as it will help me in analyzing and comparing the performance.

    Best of luck

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