Stocks with 5% Dividend Yield
In such a low rate environment, you probably will need to look outside the traditional savings accounts for a decent yield. Previously, we have discussed a few alternatives to savings accounts if you are not happy with the yield. Another option, though may be not as safe as CDs or money market accounts, is high quality dividend paying stocks (always understand that investing in the stock market is riskier than putting money in bank accounts), some with more than 5% dividend yield at the end of 2010. That’s pretty nice considering that you can only get some 1.0% return of your money from most online high-yield savings account these days.
Early this week, WSJ released a list of dividend-paying stocks. From these, I picked some with highest yields and made the following table.
Top dividend yield stocks
|Company||Symbol||Current Price||Dividend Rate||Dividend Yield|
|Frontier Communications Co||FTR||$9.45||$0.75||8.00%|
|Reynolds American Inc||RAI||$32.68||$1.96||5.98%|
|American Electric Power||AEP||$35.60||$1.84||5.12%|
Some of the above mentioned stocks, such as T, MO, and VZ, are also available at ComputerShare for direct purchase (see my ComputerShare review post on how to buy DRIP/DSPP stocks).
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