Editor's note: This column was submitted by Stockpickr member Anthony Stapleton.
These are the times that try Stockpickrs' souls -- and their account balances. In difficult times, investors have historically returned to the boring, dull and stodgy favorites that pay
Individual investors are programmed to focus on gains. Turn to any of your favorite financial television shows and you will notice that the talking heads focus on how much a stock may go up but rarely focus on the downside risk and the dividend yield. This article will highlight several high-yielding dividend-paying stocks that can help provide stability to a portfolio without additional exposure to direct subprime risk.
Why are dividends important?
Dividends are a sign of steady profits and a sound business model. Share buybacks are nice, but dividends are the gift that keeps on giving. Paying a dividend is a sign of a company's commitment to provide additional income to its shareholders.
Generally, when the professionals start recommending dividend stocks they tout the usual stalwarts:
- Wm. Wrigley(WWY)
- Proctor & Gamble(PG)
- Emerson Electric(EMR)
- Allstate Insurance(ALL)
- General Electric(GE)
While all of these may be solid choices, all but one pays a dividend of less than 3%. I want a higher yield and went in search of stocks that pay a dividend of 6% or more and that were not in the finance, banking, mortgage or private-equity industries.