The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
NEW YORK ( InvestorPlace) -- August was agonizing, to say the least. The volatility-laden indices have scared the heck out of investors, and now everyone is asking the same question: "What am I supposed to buy now?"
Well, one option is to follow Warren Buffett into banking stocks. Buffett -- via Berkshire Hathaway (BRK.A) -- just plunked down $5 billion for a stake in Bank of America (BAC), which immediately forced investors to start looking at the industry.
I have respect for Buffett, but you shouldn't follow in his exact footsteps on this one. Buffett got a special preferred-stock deal on Bank of America that other investors can't get, boasting a great 6% dividend. You're better off picking other stocks than BofA -- but keeping the Oracle of Omaha's focus on plump dividend yields.The best stocks with the strongest dividends right now are tobacco companies. While some people will take issue with investing in tobacco companies, you can't argue with the cash they are pouring out to investors.