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Category: Dividend Stock (Page 3 of 3)

Dividends are the Way to Richness Part II

Smirnoff, Jonnie Walker, Guiness, Baileys, Captain Morgan, Cuervo, have you heard of any of these liquors?  All of these are owned by Diageo, stock ticker DEO, and they continue to sell even during our current depression.  An article from Smart Money states that “Diageo’s balance sheet, paradoxically, can become stronger the longer some of its products sit in the warehouse. That’s because while the products of most companies lose value the longer they remain unsold, more than a quarter of Diageo’s revenues come from some form of whiskey, which often commands higher prices as it gets older.”  How many companies do you know have inventory that makes more money the longer it sits?  This company can sell during good times and bad because everyone around the world drinks.  The president is even shifting advertising to the more ‘moderately’ priced alcohol because of the economic slowdown.  Sounds like they have all corners covered.

With a dividend yield of 6.10% at the current price of $52.08, this looks to be a great  bargain.  Even if the prices drop furthur and the economy goes down, you will get a much better yield from this then the bank.  You might as well drink some of those woes away while waiting also, and you can with the dividend.  Maybe your drink is some delicious Bailey’s on the rocks, or you like to mix it up with Bailey’s and Guiness, whatever your preference, you will be living up to drinks that continue to sell in bars, liquor stores, markets, etc.

Dividend Stocks Are the Way to Richness

I’ve been doing research on dividend stocks lately.  As the market continues to plummet and things continue to worsen, dividend stocks will allow you to continue to win.  They work for long-term investors.  People that can wait it out a few years.  As they wait, they get rewarded.  I have a couple stocks I like currently that are pretty safe and if you have money to invest it will make you pretty rich in a few years.

RSO, Resource Capital Corporation, is a very conservative REIT.  They give out loans to commercial buildings.  As the whole subprime mess unraveled, they continued to make profit and collect mortages.  They did an excellent job of checking their clients out and making sure they would not default on their loans.  Their stock has plummeted to a low as of friday to $3.09.  This is a very cheap price for a stock that is giving a dividend yearly of $1.56.  That means if you buy it right now, you will have a dividend of 50.50%!  In just two years, you will not only make your money back but you will continue to collect awesome dividends.  If you are thinking this might be a little risky, here’s a link that tells how they have been punished by the subprime crisis.

HTE, Harvest Energy Trust, is a open-ended investment trust in Canada.  Their primary investments are in oil-related industries including shale-mining, oil refining, and drilling.  They also do invest heavily in petroleum and natural gas.  Right now, with crude oil hitting lows of $33, their stock price has dropped to $8.71.  This is a real bargain for a stock yielding $2.85.  This gives you a dividend of 32.80%.  As with all stocks, make sure you do your due diligence!  I mention DD because HTE will get taxed in 2011 by the Canadian government and this will lower the dividend.  I do believe buying at this time will continually yield a pretty good dividend.  As oil prices go back up, you will see this stock price go up and you will happily be enjoying a nice dividend no matter what happens in the future.  I do believe oil prices will rebound, and I also believe this will rebound sooner than later.

If you have some money in your bank, put some of it in these two stocks.  Why not collect a fatty dividend!  When the market finally moves up, you will continually be rewarded and when the time comes when you need to sell, you can surely bet the price of these stocks will be more than it is right now!

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