Dividend stocks this year that are profitable and sharing those profits with investors come to a total of 3255 companies. That is a very big ocean to go fishing in. How do you know which companies to buy and what to pass on? Well... Let's look a little closer at the yield and what companies are offering. If you want to beat what your banker is willing to offer you... you just dropped your line into a lake filled with 2775 companies beating the 1% CD rates offered by leading bankers. Let's say you want to get double the bank CD rate and look at companies offing 2% yields... Well that smaller lake is filled with 1874 companies. Not any closer to making a good choice but still closer to the half way point. The Wall Street average last year was around 6%, how many companies are beating that right now? 391 companies are beating the Wall Street average from last year. Do you have enough money to buy some of everyone of those companies? Me either, I want to fish in a much small pond for my investments if I want to reach my financial goals. 102 companies are paying more than 10% yield to their investors
102 is a much easier number to look at than the 3255 we started with... but I want to set some bait for a small number to choose from. If I want to add some options to the mix and you only reduced your puddle to 74 profitable companies willing to share some of their good fortune and have options available on them. (adding options to your trading is in another article.... check archives) Make this puddle a bit smaller if we make sure the company has great liquidity. With over 1 million shares trading everyday that number comes down to 27. Let's add a market cap of over $2 Billion and now you are fishing in a tidal pool of only 13 companies. Thirteen profitable companies that are paying over 10% yield, over 1 million shares average volume and +$2 billion or more market cap... I'm pretty confident in saying that this is a very nice list to be looking
Just out of high school I decided to be self employed, after running a successful manufacturing business I had a problem of making more money than I knew what to do with. I started investing, after 23 years of investing I now want to share my strategy with a select few that want an extra edge in their own investing.