Rock Solid Yield: Sisyphus could have used a backstop like Dividend Stocks.
Anytime is a good time to consider adding dividend paying stocks to a portfolio and especially now with the market breaking the S&P 1040 technical support levels. Without short side protection this means less return derived from capital gains. So instead of feeling like Sisyphus and breaking through the DOW 10,000 mark {How many times?}, it might help to purchase value stocks with dividends to lock in gains through accumulation of cash.
Reshma Kapadia and Elizabeth O’Brien point out some positive news about dividend investors prospects at Investments That Crank Out Cash.
Notwithstanding BP’s recent decision to suspend its dividend, dividend-hunting investors are generally seeing some encouraging signs. Companies like mining giant Freeport-McMoRan Copper & Gold (FCX) and cruise line Carnival Corp. (CCL) have reinstated dividends they suspended during the 2008 meltdown; in all, 157 companies increased their dividends in 2009, and at least 108 more have already done so this year according to Standard & Poor’s. That could mean executives believe their companies are getting their mojo back, says Henry Sanders, manager of the Aston/River Road Dividend All-Cap Value fund: “Dividend increases are the best legal source of insider information.” {Page 5}
Since the market ditched its typical Monday mania today, maybe we can escape the inevitable depression that has followed in its wake.