I've been working on a way to focus my investments into the highest possible dividend yield, and just discovered that Sharebuilder has upgraded their Dividend Reinvestment abilities. We can now change how dividends and capital gains are reinvested down to the individual stocks. That's really cool.
The list I'm collecting has some stocks that are currently paying up to 40% yield. I don't have a lot of money to put into them, but the money I am putting in is growing fast. I'm also focusing on monthly dividend stocks so they compound faster. As long as I keep my eye on things, they'll be growing pretty fast.
Let me know if you want to know more.
2 comments:
Sounds like a great strategy. Keep us posted on how it turns out.
You may want to check-out Dividend.com, a website that provides rankings of dividend-paying securities.
It looks like Dividend.com is focused on ranking pure stocks, and not income funds. I like their ranking system, but many of the ones that I'm watching don't seem to be in their system. I'm sure I'm pushing my risk by focusing on the low value/high dividend funds like the RMK Multi-Sector High Income Fund (RHY), and I'm only grabbing around $100 of each of the RMK funds until they prove themselves to be worthy of a larger investment.
Cellcom Israel Ltd. (CEL), which according to the numbers that I've seen has a calculated yield of 28.42%, actually has paid out $15.02 per share in dividends over the last 12 months, just not steady either monthly or quarterly. It's whenever the board gets around to it. But that's an effective yield of 46.20%.
I'm watching 31 stocks and funds that I've found with a calculated yield over 10%. I'm not going to focus all my eggs in one basket, but I don't want to miss something good during this bear market where the stock values go down but dividends are still being paid pretty high.
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