10 Dividend-Paying, High Quality Stocks

Chuck Carnevale submits:As 2011 begins, the growing legion of investors seeking retirement income is faced with the same conundrum they faced in 2010. Interest rates remain at near all-time lows, and severely limit attractive investment options to meet income needs. After being traumatized by the great recession of 2008, safety and risk aversion are of the highest priority.

By Kapitall:Many investors rely on dividends as a source of income, so if you're considering dividend stocks for this purpose, it's important to check that a stock's dividends are sustainable. If a company is currently paying higher dividends than they should, investors might see their dividend get cut.

David Hunkar submits: Most U.S. investors have low exposure to foreign stocks. Despite the rising importance of foreign countries in the global economy, many investors have the “home-bias” problem and continue to gravitate towards American companies. While it is true that a quarter of the revenues of the S&P 500 firms come from abroad, in order to gain full exposure to foreign investors, investors have to jump into foreign stocks.

Clients of Salida Capital, a Toronto-based hedge fund whose slogan is “leaders in natural resources,” will soon be receiving their latest statements. And judging from the results published on its website, the clients will presumably wish that Salida invested in other sectors of the market. The results will not make the clients much money at all. Consider the following:

By David Hunkar: When considering dividend-paying stocks, some investors tend to select stocks with high dividend yields rather than the long-term total return. However this is not a winning strategy. Instead of falling into the so-called "yield trap", investors are better off picking stocks based on total return over the long-term, according to a research report by Invesco published earlier this year. Click to enlarge

By Epsilon:The following five equities yield over 10% in dividends annually and have ex-dividend dates this week (the date on which an investor must own the equity, at the market open, to receive the associated dividend); sorted by ex-dividend date, then by dividend yield:

By David Hunkar: Global stocks fell heavily across the board yesterday. Panic selling in the markets usually presents buying opportunities. Investors looking to deploy capital during uncertain times can buy high-quality dividend-paying stocks at cheap prices. Some of the reasons for investing in dividend-paying stocks are listed below:

David Hunkar submits: Currently the S&P 500 has a dividend yield of about 2%. Investors looking for higher yields can invest in overseas companies which offer much higher yields. Generally utilities and financials tend to have higher payouts. Though most foreign firms pay dividends once or twice a year, the paid out dividends will be significantly higher. Due to tax implications it is advisable to hold high dividend-paying foreign stocks in a taxable account.