Investors occasionally use a stock trading technique called 'Buying Dividends,' which is the technique of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend. This technique generally works only in bull markets.
If you are interested in buying dividends, there are many stocks in many different industries to choose from. In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can't sell the stock until after the ex date. The actual dividend may not be paid for another few weeks.
All of the following stocks have market caps over $500 million, and yield over 2%.
Nordic American Tanker Shipping Limited ( NAT ) The stock is going ex-dividend on 11/18/2008 and pays a yield of 13.7% . The stock has a PE of 15 .
Thomson Reuters PLC ( TRIN ) The stock is going ex-dividend on 11/18/2008 and pays a yield of 5.5% . The stock has a PE of 6.
Sonoco Products Company ( SON ) The stock is going ex-dividend on 11/19/2008 and pays a yield of 4.8% . The stock has a PE of 13 .
Thomson Reuters Corporation ( TRI ) The stock is going ex-dividend on 11/19/2008 and pays a yield of 4.1% . The stock has a PE of 25 .
Liz Claiborne, Inc. ( LIZ ) The stock is going ex-dividend on 11/19/2008 and pays a yield of 3.1% . The stock has a forward PE of 7 .
Parker-Hannifin Corporation ( PH ) The stock is going ex-dividend on 11/18/2008 and pays a yield of 2.6% . The stock has a PE of 6 .
Cummins Inc. ( CMI ) The stock is going ex-dividend on 11/19/2008 and pays a yield of 2.4% . The stock has a PE of 5 .
For more details on dividend definitions, check out definitions of dividend dates. If you like dividend stocks, you should check out the the High Yield Utility stocks and the Monthly Dividend Stocks at WallStreetNewsNetwork.com.
Author does not own any of the above.
By Stockerblog.com
this technique works only if somehow the company's pps is floating. In the case of NAT, it rose after I bought a few days before ex-div, but then fell as it was approaching the ex-div date. Then it has been in free fall because of market fundamentals. Thankfully it climbed back from the 24's.. but it is still kinda wacky out there..
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