Have you been wishing you had more income lately? Are you concerned you might reach retirement and not have the income to cover your expenses? If your under the age of 55, you might be worried that social security will go bankrupt by the time your ready to retire or look vastly different than it does today. What if you lost your job tomorrow? These are all legitimate concerns. If this is the kind of stuff that keeps you up at night, you might want to focus on income investing with dividend paying stocks.
Income investing has been pushed aside in favor of trying to predict the next big stock that’s gonna double your money in a mere matter of months. As people run around throwing money at volatile stocks that surge one day and crash the next, there’s a disciplined group of investors who are quietly building an ever increasing income stream from dividend paying stocks.
Today I’d like to present 8 different dividend paying stocks yielding 8% or better that can put you on the road to income investing. These picks are some of my favorites and were screened using my 8 Dividend Investing Rules. Here they are in no particular order…
Calamos Convertible Opportunities and Income Fund (CHI) is a closed-end fund portfolio with a mix of equities, convertible bonds and high-yield bonds. CHI has an investment strategy of capital appreciation while delivering an attractive stable monthly income distribution. Calamos Convertible Opportunities and Income Fund has an attractive yield of 8.53%. CHI has paid a steady income distribution since the third quarter of 2002. For further research, go to Calamos Convertible Opportunities and Income Fund.
Wells Fargo Advantage Global Dividend Opportunity Fund (EOD) is a closed-end fund investing primarily in a diversified portfolio of common stocks of U.S. and non-U.S. companies. EOD has an investment objective to seek a high level of current income. Wells Fargo Advantage Global Dividend Opportunity Fund has a secondary objective of long-term growth of capital. has an EOD attractive yield of 11.16% and has paid a quarterly dividend since the third quarter of 2007. For further research, go to Wells Fargo Advantage Global Dividend Opportunity Fund.
Main Street Capital Corporation (MAIN) is a principal investment firm that primarily provides long-term debt and equity capital to lower middle market companies. MAIN was recently named the 2011 Small Business Investment Company of the Year by the U.S. Small Business Administration. Currently, Main Street Capital Corporation offers a monthly dividend with a yield of 8.51%. MAIN has paid a steady income distribution since the fourth quarter of 2007. For further research, go to Main Street Capital Corporation.
Alpine Global Dynamic Dividend Fund (AGD) offers a unique and balanced approach to optimizing both tax-qualified dividend income and long-term growth of capital. AGD scans the globe looking for the best dividend opportunities for investors, employing a multi-cap, multi-sector, and multi-style investment approach. Alpine Global Dynamic Dividend Fund offers an attractive yield of 9.56%. AGD has been paying a monthly dividend distribution since September of 2006. For further research, go to Alpine Global Dynamic Dividend Fund.
First Trust Active Dividend Income Fund (FAV) is a diversified, closed-end management investment company that seeks to provide a high level of current income. As a secondary objective, FAV seeks to provide capital appreciation. FAV pursues these investment objectives by investing at least 80% of its managed assets in a diversified portfolio of dividend-paying multi-cap equity securities of both U.S. and non-U.S. issuers. First Trust Active Dividend Income Fund has a handsome dividend yield of 10.63%. FAV has been paying a quarterly dividend distribution since the fourth quarter of 2007. For further research, go to First Trust Active Dividend Income Fund.
Hercules Technology Growth Capital (HTGC) is a leading specialty finance company devoted to addressing the capital needs of venture capital and private equity-backed technology-related companies, including clean technology, life sciences and lower middle market companies at all stages of development. HTGC offers a dividend yield of 8.45%. Hercules Technology Growth Capital has been paying a quarterly dividend distribution since the fourth quarter of 2005. For further research on HTCG, please go to Hercules Technology Growth Capital.
The GDL Fund (GDL) is a closed-end fund whose objective is to achieve absolute returns in various market conditions without excessive risk to capital. To achieve its investment objective, GDL will invest primarily in securities of companies involved in publicly announced mergers, takeovers, tender offers and leveraged buyouts. The GDL Fund has a yield of 9.55%. GDL has been paying a quarterly dividend distribution since the second quarter of 2007. For further research, go to The GDL Fund.
American Capital Agency Corp (AGNC) is a REIT that invests in agency pass-through securities and collateralized mortgage obligations for which the principal and interest payments are guaranteed by a U.S. Government agency or a U.S. Government-sponsored entity. AGNC has a jaw-dropping yield of 18.67%. American Capital Agency Corp has been paying a quarterly dividend distribution since the second quarter of 2008. For further research on AGNC, please go to American Capital Agency Corp.
(full disclosure: I own CHI, EOD, MAIN, AGD and AGNC)
This completes my list of 8 dividend paying stocks yielding 8% or better. Dividend Paying Stocks offers analysis and commentary on the best dividend paying stocks so be sure to subscribe to our RSS feed or grab a subscription by email. Thanks for stopping by!