I wanted to put 10 grand in a high dividend stock and I was thinking ether a mutual fund or one of these stocks.

http://www.dividend.com/dividend-sto...eld-stocks.php

Does any one have any of the stocks listed on that sheet and if so what are your thoughts on them? I am not familiar with any of those companies so I wanted a 2nd opinion.

Also WTF is up with that one stock that pays 30% at rank 1?

I was also thinking of maybe putting 3 grand into this thing
https://personal.vanguard.com/us/fun...FundIntExt=INT

or VHDYX if you don't feel like clicking the link. It is around 2.4%~

I was also thinking of T - it pays 5.4% and it relatively stable.

If any one has any of these or knows of a better place let me know.

Most of those are royalty trusts, MLPs, and REITs. If you aren't familiar with what those terms mean, don't invest in them. A royalty trust paying a 30% yield is very different than a normal company paying a high div yield.

The vanguard fund is investing in a totally different type of companies than the website you linked.

Is this for the long term or short term and what are your goals with this investment. If interested in dividend paying stocks, look up dividend aristocrats, a lot of interesting info out there.

Just to expand on the above, most of the stuff that pays the ridiculous dividends are purely royalty/contract paydown/real estate income/trust type arrangments. That is, the company holds assets of one form or another which have a very fixed return from a fixed asset pool, or they exist solely to divest themselves of all their assets to their shareholders. Thus there's no possibility for growth and the stock value will usually decrease in line with the trickle out of assets paid via dividends. In other words, you gain absolutely nothing by buying into them. What you gain in dividends is lost in stock price.

For example, the Chesapeake Granite Wash Trust on the list contains oil and natural gas royalties. Chesapeake spun them off to handle the payment of royalties owed from existing fields. The company has $300 million in cash, the same as its market cap. Each quarterly payment reduces the size of the remaining royalty pool, devaluing the shares by the amount of the dividend. When everything is paid, the company will be wound up.

I'm a stock noob so I could be wrong here, but I would think the main reasons to invest in high div stocks are:

1. You want to buy the stocks for income and withdraw the returns at regular intervals. Basically using them like a savings account that gets stock market level returns without having to pay the transaction fees of selling some of your stocks whenever you need cash.

and/or

2. Your tax rate on non-qualified dividends is lower than the cap gains rate. In this case you'd want to focus on the REITs because, as I understand it, the divs are always non-qualified.

high paying dividend stocks typically struggle in a rising interest rate environment as money moves towards those now higher interest rate investments. Additionally, dividends are taxable unless it in is an IRA so there is tax implications when a dividend is paid out. If you are young and do not need the income, then dividend paying stops are not really beneficial as they simply create more taxes. As a young I'd rather own a growth company for the long term and not pay the taxes until I sell the investment. Additionally, as long as you hold for > 1 yr pay the 15% long term capital gains tax and that is only if you are in 25% or greater tax bracket otherwise it is even less.

well I wanted to own some because I think keeping $$$ in the bank is a waste and my parents own some - and it makes them a free 40k a year in just dividends.

I am 29 so not all that young.

I already own apple - disney - silver - gold - a few vanguard funds - and savings bonds.

I'd like to get some dividend stocks but I don't know which one to get.

Your parents have high div stocks because high div stocks are usually best for old people who are at or close to retirement age. They probably have less income than they did before, possibly higher expenses because of medical issues, and won't be around long enough to see the long term gains of growth stocks anyway.

I agree that keeping significant sums of money in a bank account is a waste, but wanting certain stocks in your portfolio just because your parents have them in their portfolio is silly imo.

Buy MSFT at $25?

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Look, now is not the time to get into dividend stocks. Prices are historically high, interest rates are more likely to be rising than any time in the last few years, there's a possibility of meaningful geopolitical issues in Europe. All of these put downward pressure on dividend stocks. There's no point buying something that makes you 2%/year where you've got 50% 1-5 year downside.

You buy dividend stocks after crashes, like the 2008 crash, when interest rates are declining, when the company's fundamentals/structural and market advantages are still amazing, but the market is depressed and earnings are down because the economy and confidence is low.

thanks - any ways - what would you do with the 10k?? just buy more silver and blue chips?

If you're not happy having it in the bank, you could buy a quality real estate holding company like ARCP. In fact, it sounds perfect for you. 7% yield, paid monthly, low volatility, people think it's well managed (I have no opinion). Seems to tick all the boxes, and I'd imagine it's less risk and better return than some of the inflated blue chips with 2% div.

I just read The Neatest Little Guide to Stock Market Investing. I liked it and thought you (OP) might find it useful as well.

Also, I own Verizon, which is not very exciting as far as growth goes, but pays a nice dividend.

that is an old book is it still useful for today?

ARCP looks good - perhaps i'll ask around about that stock

The newest edition is updated to 2013.

Check out this book: The Little Book of Big dividends

http://www.amazon.com/The-Little-Boo.../dp/0470567996

In The Little Book of Big Dividends, dividend stock expert Chuck Carlson presents an action plan for dividend-hungry investors. You'll learn about the pitfalls, how to find the opportunities, and will learn how to construct a portfolio that generates big, safe dividends easily through the BSD (Big, Safe Dividends) formula. If you're a bit adventurous, Carlson has you covered, and will teach you how to find big, safe dividends in foreign stocks, preferred stocks, ETFs, real estate investment trusts, and more.

I have a Roth IRA with Vanguard that I put dividend paying ETFs in

VIG
VYM
VNQ(REIT)

I just re-invest the dividends and have no plans to draw them until I retire. At that point I plan on rolling my 401k into my Roth and living off the dividends tax free as my principal continues to grow.

ARCP is a fine choice. I own some. On that list you posted, I would not touch any until PSEC. But it is high risk. I sold my shares recently (at a profit). Decided it was too risky.

Has anyone here ever invested in MLPs?

They are complex in regards to taxes

I would stay away from the oil trusts unless you read exactly how long they will pay out. People often fall in trap of overpaying for a dividend that is about to end. They are usually better shorts. MLPs could be good. BDCs seem overlaced with fees. If you make a loan out at 15% but charge a 7% fee why not just invest in junk bonds. I always ask the question why don't these middle private firms just get a loan from a bank at 5% interest? They get to borrow from a bank to lever up? Why doesn't the bank just cut out the middle man. if you are going to buy a BDC it is a good time because many index funds were forced to sell to get them out of index etfs and mutual funds.

sp500 yields 3% now, thats pretty high compared to the past couple decades. I would just go with that rather than a dividend focused ETF that might be overvalued due to financial repression from the fed.

I like the John Hancock fund family for these, although they have run high and fast for the last 3 months.

It is a bit lower than that. Unless I am missing something it is still under 2%.

I own quite a bit of JNK and like it a lot. It's a junk bond ETF. 6-7% paid in a monthly dividend. It's been really stable in the 1-2 years I've owned it. Price doesn't fluctuate much.

2.5% now. was closer to 3% but the dividend raises havent kept pace with price appreciation I guess.

My computations show SPY yields 1.9%.

This is based on the last 4 dividends.