Best Dividend Paying Stocks

Best Dividend Paying Stocks

Your bank pays you almost nothing to keep your hard earned money at their branch. The national average for a high-yield savings account is 0.16%. Think a CD will give you a better rate? 1 year CDs pay 0.45% on average.  One of the best ways to put your money to work is by investing in safe dividend paying stocks. Please do your own research first, but two stocks I invested in recently include Waste Management (WM) and real estate investment trusts American Capital Agency (Nasdaq: AGNC).

American Capital Agency

AGNC yields a whopping 19.7%. A REIT pays such a high dividend because they must pay out 90% of their taxable income. Right now REIT are borrowing cheap short term cash and using it to purchase long-term real estate-based assets. Interest rates WILL rise and their dividend yield will drop.

Waste Management

Waste Management (WM) is a safer beat and pays a modest 3.62% dividend.

For more information and more ideas visit this informative article about dividend paying stocks http://www.fool.com/investing/dividends-income/2010/11/16/the-most-outstanding-dividend-stock-i-know.aspx

One Response

  1. Shafik Says:

    Real estate investment trusts are solid dividend investments with high yields because of the nature of their business; they are required to pay 90% of their net income to shareholders in the form of dividends. The best REIT that I like is the Realty Income Corp (NYSE: 0) which pays monthly dividends and has a history of 42 years of paying dividends.

    Realty Income Corp is a 42 year old real estate investment trust that pays monthly dividends generated from over 2,500 commercial properties in 49 states across America. Most of the company’s revenues come from retail office space including convenience stores, chain restaurants, movie theaters, health and fitness centers. Examples of their tenants include PetSmart, Taco Bell, Jiffy Lube, Children’s World Learning Center, KFC & National Tire & Battery. Source: http://www.highest-dividend-paying-stocks.com/ The company leases office space in the form of preferred leases where the tenant is responsible for the majority of the property’s operating expenses (taxes, maintenance and insurance).

    The company’s stock has a market capitalization of $4.3 billion and currently yields 5.11% dividend. It currently pays 14 cents a share monthly equaling $1.68 per share annually. This has grown from a modest $0.90 per share dividend paid when the company was young.

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