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
- GOP Lawmaker: "If I Were A Betting Man, I'd Say There Won't Be A Vote Today" | ZeroHedge
- Hawkier Fed, Drowning Oil, and Insiders Jumping Ship | Financial Sense
- US Debt of $20 Trillion Visualized In Stacks Of Physical Cash | ZeroHedge
- Here Are The Reasons Why Today's Republican Debacle Makes Tax Reform Less Likely | ZeroHedge
- McCain: "The New World Order Is Under Enormous Strain" | ZeroHedge
- A Big Tailwind for the Stock Market Has Now Dissipated | Financial Sense
- 16 Years Of European Terrorism In One Chart | ZeroHedge
The most relevant financial news and articles from the Internets
- This chart shows how much more expensive... | Business Insider
- How 'Trumpcare' went up in flames — and why it should worry the GOP about... | Business Insider
- House Intelligence chief: We don't know 'for sure' if Trump... | Business Insider
- Here's why Canyon Barry has a... | Business Insider
- Book Review: <em>Thinking, Fast and Slow</em> by Daniel Kahneman | BusinessWeek
- Scientists have a new theory on why Earth was completely frozen 700 million years ago — and how it... | Business Insider
- The first 'Super Mario' game for Android is excellent, gorgeous, and too short | Business Insider