While I’m far from a stock market trader guru, I do enjoy (yeah, enjoy…the inner nerd seeps out in mysterious ways) finding and categorizing stocks/stock ideas.  One category that has been helpful in a shaky American economy is the high dividend stock “sector”. 

Why?  Well, it start with the notion that most people are lazy.  I don’t mean that (in this sense) in a bad way.  Life happens.  Go enjoy it the best you can.  But it’s nice to have your money work for you when you’re not working.  With the Fed cutting rates, that means keeping all of your money in a savings account or even CDs gives you very little profit…esp. if inflation is to continue upward and onward…and don’t forget that Uncle Sam “earns” a portion of your profits, too.

So a savings/money market account these days might yield you about 3-3.5%.  And you probably will need to park about $5000 or more to get the sweeter deals.  If you know you need that money in the short term, then don’t play games, dummy.  Don’t risk losing it.

But if you have some time on your side and want something with a ‘cushion’, then why not look at stocks that pay high dividends?

As the price of the stock comes down, the yield goes up.  Thus, the “cushion”.  As long as the company isn’t collapsing and going out of business, then there will be buyers waiting for the higher yields if the stock hits a bit of a bumpy road…or is the victim of the market in general. 

Don’t buy all at once.  Expect your stock to come down a bit.  But that’s ok, you’re looking for a good, quality yield.  Put that into a Dividend Reinvestment Plan (DRIP), and you’ll see the magic of compounding interest right before your eyes.  Put one or more of these in an IRA, then you’ll see tax free compounding interest.  That’s pretty cool.  Maybe not as cool as Rick Rolling someone, but close. 

Here are some suggestions.  Take a look.  Do your homework.  Have good times Rick Rolling someone else while you collect some sweet moolah.  Note: some may be subject to foreign taxes, but nonetheless, these may be worth a look depending on your specific situation.

• Frontline (Shipping) – 17% yield
• PetroChina (Oil) – 3.2% yield
• WWE (Wrestling Entertainment) – 7.5% yield
• AT&T (Telecom) – 4.16% yield
• General Maritime (Shipping) – 8.34% yield
• Integrys Energy Group – 5.59%
• Pengrowth Energy Trust – 13.97% yield
• DVY (iShares Trusts DJ Dividend Index Fund) – 4.29% yield

Have any others you’d like to share?  Let us know!  These are just idea starters.  But I’m a big believer in sharing ideas that can lead to other bigger and better ideas…or help you steer away from the not-so-good ideas.

Get the idea?  Good!  Well, then, share!  On that note, it’s time to enjoy some of that ‘life’ thing.  Finally a superb Michigan evening.  Warm, low humidity, birds chirping, slight breeze, everyone’s out walking their dogs, my Detroit Tigers cannot possibly lose tonight (as they are not playing)…just need to capture it in a bottle.  <sigh>