Tuesday, January 01, 2008

Update: High Dividend Yield Stocks


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In this previous post, I looked at possible plays of some high yielding financial stocks. I really don't know anything about these stocks, other than the fact that they have a high dividend yield, and most of the charts of this group of stocks look pretty bad. I am pretty much relying on the market to tell me which one of these stocks are worth taking a closer look at.

Take a look at GLAD for instance. When it closed below 19, and couldn't break back above it the next day, brokers couldn't hit the sell button fast enough. Anyone who thinks that is just tax loss selling can be my guest at trying to time the bottom of this piece of crap.

There are some exceptions:

HBAN: if it can close above 15.5, or put in a few higher intraday lows, then there may be some hope for this stock.
CSE: Dec. 17 was the line in the sand for this stock. Any buys here should use the LoD from Dec. 17 as the stop.
CT: starting to look a bit precarious here. Buyers need to follow thru this week and retake 32. A close below 30 (esp. a bearish engulfing candle) invites a re-test of Nov. lows.
BPOP - this stock is the best of the bunch. After the lows in mid-Nov, buyers were able to take control, and price action was not messy on the way to recovery. I'm actually thinking of putting this one onto my watchlist, with a tag of the 20d EMA being the possible entry point.

A couple other high dividend yield stocks have caught my attention:

PCU - the current yield is almost 7.5%, which is pretty decent. However, it is almost impossible to hold this stock for the dividend yield without suffering through a 20% decline. That said however, the volatility also makes this a good daytrading, and even swing trading stock.

TNH - the current yield is at around 5.90%. Since the whole aggie sector is in an uptrend, that makes it easier to hold this one for the yield

So, now I have BPOP, TNH, PCU, AMZN on my watchlist. There are others, and I will discuss them as needed in upcoming posts.

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