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!