Dividends are an often overlooked but crucial part of a successful retirement strategy. These quarterly offerings can provide a regular "paycheck" for retirees -- especially when the company is a high-yielding blue chip with a track record of boosting its dividend year after year.
But dividends don't just have to be a quiet way to grow your nest egg. They can really supercharge your returns when you buy into a great stock that also happens to be cash-rich. On top of the appreciation you see in your shares, you'll also get a great bonus checked mailed four times a year -- or more, depending on the dividend schedule.
Here are nine examples of high-yielding dividend stocks with breakout potential.
All of these companies have a yield of 10% or more (OK, well one is rounded up from its 9.6% yield, but you get the idea) and are small cap stocks that seem to be going strong right now.
Click on each to learn more.
Stock #9: Legacy Reserves (LGCY)
Stock #8: PennantPark (PNNT)
Stock #7: Main Street Capital (MAIN)
Stock #6: Mesabi Trust (MSB)
Stock #5: Prospect Capital (PSEC)
Stock #4: PDL Biopharma (PDLI)
Stock #3: MFA Financial (MFA)
Stock #2: Och-Ziff Capital Management (OZM)
Stock #1: Annaly Capital Management (NLY)
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Reader Comments (Page 1 of 1)
3-13-2010 @ 3:37PM
jackkline said...
Some of the yields don't add up
3-13-2010 @ 9:25PM
Aaron said...
As with any investment, it is important to do due diligence here. Asking yourself why a stock is yielding far more than most junk bonds might be a good place to start. For example, Annaly Capital Management makes leveraged investments in mortgage-backed securities. This sophisticated strategy requires a high level of research and knowledge on the part of the investor and should not be carelessly incorporated into your portfolio.
3-14-2010 @ 1:25AM
Sheldon L said...
Falling yields are not so bad for NLY, if that were the only caution; half the 16.5% is still good. However, that means the company is earning less and that will sink the stock -- a double whammy.
Disclosure; I own some NLY, but am watchful.
3-14-2010 @ 10:55PM
charlie said...
Turn on the tv and watch American Greed type programs that tell stories of how intelligent people got suckered in with hi yields and unknown investments. Ask Bernie Madolf clients.