Diary of a Dividend Diva: Out of the Doldrums

 | Apr 19, 2013 | 11:15 AM EDT  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

ry

,

bmo

,

kmi

,

pg

,

txn

Last week, I said that April -- and every first month of the quarter -- is the "dividend doldrums," since companies will report this month, then declare dividends, which start flowing in force in the second month of the quarter. Hitting your income target in this first month is always a challenge. 

As we move into the final week of the month, I put in a few trades to move the income ball down the field. Great dividends can be scarce, but you can find them here and there. The table below outlines all the reasonably attractive dividends coming before month-end. This is it, folks. If you don't play a few of these, you are dead in the water until early May.

I highlighted the names I bought yesterday to round out the month. I am a fan of the Canadian banks (Royal Bank of Canada (RY) and Bank of Montreal (BMO))), and I play them every quarter. I trust Canada's financial system far more than the U.S. one -- Canada completely avoided the housing bust, and it has a "hard" currency and an economy backed by resources. Do beware that those dividends will be clipped by around 15% for U.S. investors because of tax withholding on the dividend income.

Kinder Morgan (KMI) is always great; note that I play the general partner, which is a normal corporation, and not the limited partner, which has a great yield but will saddle you with a K-1 and other tax accounting challenges.

Procter & Gamble (PG) is a quarterly favorite, and right now consumer staples are in favor as a defensive sector, so the stock should hold up ex-dividend. The semiconductors are lousy right now after the Intel (INTC) call, so I am moving into Texas Instruments (TXN) cautiously, taking a smaller than usual position. The Publix (PUSH) dividend looks lush, but if you buy that stock, use limit orders, because it is very illiquid.

Columnist Conversations

TrueCar, Inc. (TrueCar) is a data-driven online platform operating a technology infrastructure, powered by dat...
Financial Planning magazine reports that... The Internal Revenue Service is considering regulations to limit t...
MMM is rolling over. Early last week the stock began to fall out of a steep bull channel before retestin...
Higher tariffs are a sign of increased floating inventories that will be available for immediate withdrawal on...

BEST IDEAS

REAL MONEY'S BEST IDEAS

Columnist Tweets

BROKERAGE PARTNERS

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.