Top 100 Dividend Stocks – October 2011

By: ispeculatornew
Date posted: 10.04.2011 (5:00 am) | Write a Comment  (3 Comments)

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After 5 straight months of decline in the S&P500 and a very bad start to October yesterday (market losing close to 3%!), things are looking very gloomy and you can already imagine the headlines of magazines and newspapers if things continue on this pace. The good news is that such markets create incredible opportunities, especially for dividend stock investors. In fact, in case you missed it, the only 2 bloggers that are in positive territory in our annual stock picking contest have a focus on dividends (I am one of the two with 2 dividend picks and 2 tech picks). So we are back today with our monthly ranking of the top 100 US dividend stocks in terms of dividend yield.

Yield Alone Is Useless

A few weeks ago we received an email from a reader who had bought a position on a dividend stock telling us

“You are missing the point. Even if this company keeps up its dividend for 2 years, I’ll have paid for nearly half of my purchase. I won’t care at that point if they reduce it.”

Of course, we have said over and over that holding a dividend stock simply because of its high yield would be foolish. You might remember reading about Yellow Media (YLO), a Canadian listed stock that up until recently sat at the very top of the dividend yields in Canada. Their finances were a mess and they did end up being unable to keep up the dividend. They reduced it at first, then stopped paying it entirely and are now on the verge of collapse with the stock trading at a few pennies (it closed yesterday at $0.15). This all happened very quickly.

Frontier Communications Corp (FTR)

FTR has been at the top of the US rankings for a few months now and is also paying more than what it likely can afford to do. Is it the next YLO? No. FTR is in fact a healthy company and while its dividend will probably diminish again (it was already reduced this year), it is unlikely to be halted. Why does this matter? Because it’s one more example of why we favor a different approach for dividend stock investing; finding sustainable dividend stocks.

We highly recommend that you join our free newsletter to receive more analysis and research about such stocks, sign up here for Free!

Next week, we will do further research on the 100 stocks listed here to determine which ones are more likely to do well in the long term both based on sustainability and the 20 things that we look for in dividend stocks.

In the meantime, here is the list!

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3 Comments

  1. Comment by Ole — October 9, 2011 @ 5:12 am

    Would it be possible to add a list of monthly changes (additions and deletions) in order to facilitate use of the list?

  2. Comment by IS — October 11, 2011 @ 8:12 pm

    @Ole -Not sure but I will certainly keep that in mind!

  3. […] It’s All About Being ConsistentJack on Trading: It’s All About Being ConsistentIS on Top 100 Dividend Stocks – October 2011Bret @ Hope to Prosper on If You Could Meet Warren Buffett And Ask Him One Question…Ole on Top 100 […]

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