Rochester,NY 7/12/2009 1:43:26 AM
Weekends Report - DD - These Dividends Are Done - Sourced WhisperFromWallStreet.com
EI DuPont de Nemours & Co
Weekends Report - DD - These Dividends Are Done - Sourced WhisperFromWallStreet.com
EI DuPont de Nemours & Co.DD
It's scary out there for dividend investors.
Even with the recent rally, dividend yields are sky-high. According to Capital IQ, there are 1,316 stocks on our major exchanges that have yields of 5% or more. But a lot of these are dividend traps, enticing us with the promise of fat quarterly payouts only to cut them down the road.
As a stark reminder, we can look to General Electric. Once hailed as the safest of the safe, GE has in short succession gotten government help, cut its dividend to save cash and (hopefully) retain its AAA debt rating, and then lost that AAA status anyway.
And of course, relatively conservative banks like BB&T (NYSE: BBT) and US Bancorp (NYSE: USB) are another reminder of safe dividends gone scary.
The "5% of nothing" club
Traditionally, a 5% dividend yield has been eye-popping enough to elicit fears of a dividend cut. Now, it feels commonplace. When you see a blue chip like Kraft creeping up on a 5% yield, anything short of double digits starts to feel safe. And we start getting a little greedy.
But that greed can turn right back into fear if the great double-whammy curse of high-yielding stocks kicks in. After all, we buy dividend stocks because they provide a large, steady stream of income and have the promise of stock price appreciation. But then:
Last Trade: 24.61
Day's Range: 24.08 - 24.86
52wk Range: 16.05 - 48.22
Volume: 5,233,014
ABOUT EI DuPont de Nemours & Co
E. I. du Pont de Nemours and Company (DuPont) operates as a science and technology company in various disciplines, including agriculture, industrial biotechnology, chemistry, biology, materials science, and manufacturing. It operates in five segments: Agriculture & Nutrition, Coatings & Color Technologies, Electronic & Communication Technologies, Performance Materials, and Safety & Protection. The Agriculture & Nutrition segment offers benzene and carbamic acid related intermediates, copper, insect control products, natural gas, soybeans, soy flake, soy lecithin, sulfonamides, corn, and soybean seeds. The Coatings & Color Technologies segment provides automotive finishes, industrial coatings, and titanium dioxide white pigments. The Electronic & Communication Technologies segment offers a range of materials for the electronics industry, flexographic printing and color communication systems, and various fluoropolymer and fluorochemical products. The Performance Materials segment provides thermoplastic, and thermoset engineering polymers and elastomers to fabricate components for mechanical and electrical systems, as well as specialized resins and films used in packaging and industrial applications, sealants and adhesives, sporting goods, and interlayers for laminated safety glass. The Safety & Protection segment offers specialty and industrial chemicals, nonwovens, aramids, and solid surfaces. The company also has interest in two antihypertensive drugs, the Cozaar and Hyzaar. It serves construction, transportation, communications, industrial chemicals, oil and gas, electric utilities, automotive, manufacturing, defense, homeland security and safety consulting, refrigeration, insulation, aerosol propellants, aerospace, automotive, electronics, chemical processing, and house ware industries. The company operates in the United States, Europe, the Asia Pacific, Canada, and Latin America. DuPont was founded in 1802 and is headquartered in Wilmington, Delaware.
---
During 2009 we have sent 40+ alerts with an average gain of over 80%. Below are a few alerts sent only to our whisperfromwallstreet.com members.
SPNG 1800%
AMNG 241%
RKBD 300%
UTRM 169%
TLLE 266%
Sign up now to receive free stock alerts
---
Please Read Our Disclaimer at http://whisperfromwallstreet.com/disclaimer.php
