Posterous theme by Cory Watilo

Don't underestimate Dividends...

When you are looking for stocks to buy, check out stocks that pay a dividend.  For those that don't know, a dividend is like getting interest payments on your stock holdings.  It's extra cash from your stocks and many stocks pay out over 2% in dividends, which is better than any bank you're going to find.

Some great stocks to throw onto this list would be:

KO - Coke
PEP - Pepsi
CLX - Clorox
CL - Colgate
JNJ - Johnson and Johnson
PG - Proctor & Gamble
MDT - Medtronic
AFL - Aflac
WMT - Walmart
MCD - McDonalds
KMP - Kinder Morgan Energy Partners (high yeild risk)

These are all good stocks to add to your watch list and grab when they drop.  Note that in the Undertrader app I've made it so dividends from a specific stock can be recorded and tracked as part of the gain of that stock.  There are instances where you could have a stagnant stock that you bought at $10 and is still $10, but you got $1000 in dividends 4 times that year.  You'd be up $4k, even though the stock never moved, so that's a great stock.  That's why I made dividends part of your gains.

(Disclosure, of the above I own Coke.)

Invest in peace...