# Anybody on here chase these kinds of dividend stocks?



## indexxx (Oct 31, 2011)

http://www.dividend.com/dividend-stocks/high-dividend-yield-stocks.php

Just wondering if these yields are too scary for most...


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## thompsg4416 (Aug 18, 2010)

I owned LRR Energy for a little while and I have also traded PGH in the run up to the ex-divided date and made a 5% profit.. I have never held either for their dividend. I do chase some high yields at times - ARR and SAN are two I've played over the last year. SAN for value growth/Div and ARR for the dividend. In my case I've done a fair bit of research and I'm comfortable with the risks. Typically companies have a high yield for a reason and its usually not good so buyer beware Good luck!


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## indexxx (Oct 31, 2011)

I own SAN, TICC, and APL, but was just curious as to other's involvement in high-yield stocks. APL has been one of my best performers in the past couple of years- I bought in just over $10.


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## My Own Advisor (Sep 24, 2012)

I don't think I'd touch anything on the first 50 pages...yields are way too high for me....like gambling.


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## thompsg4416 (Aug 18, 2010)

I love SAN. I got in just under 6 and sold just over 8.... If I see a dip below 8 I'd probably load up somemore. Solid diversified company, great div.... Room to grow. They got punished because they are headquartered in Spain but in reality a lot of their profits come from outside. 

I tend to lean towards higher risk but I'm trying to keep HY risk to about 10-15 percent of my portfolio.


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## james4beach (Nov 15, 2012)

I don't own anything with those kinds of yields. Obviously they're very risky companies and I think you'd have to be closely watching the stocks so that you can get out once they cut their distributions / earnings plummet / etc. It's a lot of work. I'm not fundamentally opposed to having high risk high dividend stocks, but I'd rather hold a basket using an ETF. One fund I've been researching is ZDV (net dividend yields 5.2%) which at least screens them for dividend increases and payout ratios.

You could look at the holdings and use that as a shopping list for high yield stocks. I don't think this is a great time to enter, though. e.g.

VSN 7.8%
TA 7.2%
EXE.UN 11.5%
FRU 7.2%
CPG 7.1%
PBN 10.6%


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## doctrine (Sep 30, 2011)

The highest I ever bought was Automodular when it was at about 14% (now 9%). I don't understand these American high yield stocks as much, so I would be avoiding them. But I've bought plenty of 8-9% yielding stocks that have done quite well - like Wajax, Boston Pizza and Alaris.. most of those yields have come down though from 8-9% to 5-7% (after 40-50% share price gains) - almost everything in the Canadian market has been bid up quite a bit, but I was fortunate enough to get in over the last couple of years.


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## Sherlock (Apr 18, 2010)

Yeah I bought ARR (17% yield at the time I bought), held it for a few months then read The Little Book of Big Dividends and got scared and sold ARR. Sold for about the same price I bought it but collected several big dividends during those few months so I came out slightly ahead. I think if you buy stocks with that kind of yield, you are just asking for trouble. I can see putting a very small percentage of your money into them but definitely not as a core holding.


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## gibor365 (Apr 1, 2011)

From real high dividend stocks I hold only AGNC, bought it abd sold several months lated with small gain _+ dividend... got too scary to hold it...
I think more secure just buy ETF of those stocks, like for example KBWD (PowerShares KBW High Dividend Yield Financial Portfolio NYSE Arca:KBWD)... 8.3 yield, 0,35 MER, 33 holdings...


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## james4beach (Nov 15, 2012)

gibor said:


> I think more secure just buy ETF of those stocks, like for example KBWD (PowerShares KBW High Dividend Yield Financial Portfolio NYSE Arca:KBWD)... 8.3 yield, 0,35 MER, 33 holdings...


The MER on that one is very high at 1.32%. But sure, if you want all US financial exposure, that's a high yield. Personally I wouldn't touch that sector with a ten foot pole, as it's still on life support and ongoing emergency assistance.


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## gibor365 (Apr 1, 2011)

james4beach said:


> The MER on that one is very high at 1.32%. But sure, if you want all US financial exposure, that's a high yield. Personally I wouldn't touch that sector with a ten foot pole, as it's still on life support and ongoing emergency assistance.


Hmm, in TDW MER 0.35 and ETF Channels - 1.32% ... strange...
When it not gonna be on "life support" , it will be too late  . Yes, it's very risky, but imho better than to select one or two high-yeld stocks from this thread..

I'm actually watching US Utilities ETF - XLU , MER just 0.18% and yield about 4%


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## Feruk (Aug 15, 2012)

The one I hold and quite like is TCAP. Dividend of 7.7% now. It's not insane on P/E, debt is ok, continued dividend increases, and they never pay out over 100% of their income. Great company. I've been DRIPping them for about a year now.


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## thompsg4416 (Aug 18, 2010)

I just picked up SAN yesterday on a some bad European news. 9.8% Yield as of yesterday and in my opinion a relatively safe investment - You could even argue long term its a value play although maybe not quite yet.


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## The Financial Blogger (Apr 4, 2009)

I rather chase companies with high dividend growth and EPS growth history. I don't mind the currently dividend yield, I want to make sure the dividend payouts will increase overtime. Since interest rates are so low, there's always a reason why a stock is paying high dividend yield. The reason is often RISK ;-)


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## gibor365 (Apr 1, 2011)

n


The Financial Blogger said:


> The reason is often RISK ;-)


 The reason is always risk  On other hand you have not less risk investing into stocks that don't pay dividends....


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