Market Overview

Look To Dividend Stocks In Current Market Storm (MO, T, CVX, DD, KO, MCD)


Whether you are an investor or a trader, opportunities to make money on the long side have been few and far between in 2010. For the most part, the name of the game has been to not lose money. Year-to-date, the SPDR S&P 500 ETF has fallen 7.35%.

One way that investors can try to protect themselves from the furious market correction is to reduce risk significantly and focus on high-quality companies that pay dividends. In many cases, dividend yields have risen substantially as prices have come down.

These dividends provide a downside cushion for stock prices. Furthermore, many high dividend paying companies are engaged in defensive businesses that hold up better in a bad economy. Among the many stocks that are offering attractive yields right now are Altria Group (NYSE: MO), AT&T (NYSE: T), Chevron (NYSE: CVX), DuPont (NYSE: DD), Coca-Cola (NYSE: KO), and McDonald's (NYSE: MCD).

Altria (MO) is currently yielding a whopping 6.82%, or more than double what the 10-year Treasury note has to offer. AT&T's (T) yield is at a sky-high 6.91%. Both are high-quality companies that have been paying their shareholders dividends for years and years.

Oil giant Chevron (CVX) is offering up a fat dividend yield of 4.29%. Essentially, you can earn 4.29% annually to own one of the highest quality integrated energy names in the world, which allows investors to significantly extend their time horizon when it comes to share price appreciation.

DuPont (DD) is a blue-chip which is currently yielding 4.84%. Two of the most attractive names that dividend investors should take a look at are McDonald's (MCD) and Coca-Cola (KO). These are maybe the two most iconic companies in the entire world, and at current levels their dividends look mighty attractive. MCD is yielding 3.33% and KO is at 3.50%.

Posted-In: Long Ideas Dividends Trading Ideas


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