Top 3 Dividend Stocks for 2013
They are Exelon (EXC), Safeway (SWY), and Energy Transfer Partners (ETP).
Some are saying that Obama's "Taxmageddon" is going to be a game-over scenario for dividend stocks.
However, we don't think so. Here's why.
Institutional buyers of dividend stocks are taxed at their own rate so they did not benefit from the 2003 cut in dividend taxes anyway - which means they won't suffer from a new increase.
And even among retail investors, many have their investments in 401(k)s or IRAs. These holders will continue to receive dividends that won't be immediately taxed.
The talk is that if we fall off the fiscal cliff, taxes on dividends will revert to the full income tax rate of each individual taxpayer.
For the top retail taxpayers that are not investing using a tax-deferred account, that means the top rate on dividends will rise from 15% to 43.4% if dividends become fully taxable again.
And lastly, Bernanke is saying short term interest loans are going to stay low until 2015. Dividend yields should still offer an attractive yield compared to bonds.
Enough said, now let's get to the stocks:
Exelon (EXC) - 7% yield
Shares of the $25B Utility giant are down 28% YTD, yet it has not cut its dividend. On November 1st, EXC announced earnings that beat on EPS and they upped Guidance.
Over the past 12 months Exelon Corp (EXC) shares have traded between $28.4 and its 52-week high of $44.45. Exelon Corp shares are now trading with a P/E Ratio of 15.9 and EPS of 1.87.
Safeway (SWY) Dividend Yield - 4.15%
Over the past 12 months Safeway Inc (SWY) shares have traded between $14.73 and its 52-week high of $23.16. Safeway Inc shares are now trading with a P/E Ratio of 8.8 and EPS of 2.07.
Energy Transfer Partners (ETP) Dividend Yield - 8.27%
Over the past 12 months Energy Transfer Partners LP (ETP) shares have traded between $40.19 and its 52-week high of $51. Energy Transfer Partners LP shares are now trading with a P/E Ratio of 8.4 and EPS of 4.53.
Best of the Blogs
Scanning and identifying the best blog entries every hour
- Fracking Comes to the Arctic in a New Alaska Oil Boom | Financial Sense
- The REAL New World Order | ZeroHedge
- Schumer: "U.S. Is No Longer Fact-Based" Nation; Breitbart News A "Threat To Democracy" | ZeroHedge
- Somehow The US Has Killed 70k ISIS Fighters - Twice As Many As It Says Exist | ZeroHedge
- Trump's Tax Reform Plan: A Cheatsheet Of What Is Known, Leaked, And Is Still Unknown | ZeroHedge
- Ron Paul Rages At Trump: "Assange Is A Hero... Don't Declare War On The Truth" | ZeroHedge
- Alibaba's Jack Ma Sees "Decades Of Pain Ahead" Thanks To Internet Disruption | ZeroHedge
The most relevant financial news and articles from the Internets
- MEET THE NEW EXECUTIVE BRANCH: Here's who Trump has... | Business Insider
- 14,923 nukes: All the nations armed with nuclear weapons and how many they have | Business Insider
- Spain arrests 9 suspected jihadist group members with... | Business Insider
- EINHORN ON TESLA: 'We expect these bubbles to pop' (TSLA) | Business Insider
- More than 800 startups urged Trump's FCC boss not to undo Obama's... | Business Insider
- The man who was supposed to be integral to Trump's economic policy appears to be... | Business Insider
- NASDAQ TOPS 6,000 FOR THE FIRST TIME: Here's what you need to know | Business Insider