Blue Chip Us Dividend Stocks?

[ExpatJ]

I just sold a dog of a US stock (lost 10,000 USD over a year) and i am looking to put the freed up cash into a blue chip US dividend stock, and tell my broker to automatically reinvest the dividend payments by buying more of the stock- plan is to leave this in place for the long term - any suggestions? (I already have SHELL)

[givenall]

i recommend you open a online Brokerage account with Fidelity or Schwab and then put you money in Mutual funds and you can monitor and change as you like .

[yoshiwara]

'er put more in Shell.

[Lefty]

Take a look at AGNC and NLY have owned for two years and really great dividends.I use Vanguard as my broker.

Lefty

[anon210]

Take a look at AGNC and NLY have owned for two years and really great dividends.I use Vanguard as my broker.

Lefty

The OP asked for "blue chips", and the two stocks you quote are anything but that. They are stocks investing into real estate mortgages and paying dividends out of the interest earned.

The basis for making money for these companies is the current low interest policy practiced by the Fed. When this policy will change, obviously their profitability is going to take a serious hit. Even now, some as CIM are struggling and cutting their dividends.

More serious blue chips would be energy stocks, and some reknown name such as Coca-Cola Mc Donald's and the like.

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[ExpatJ]

I think I will buy McDonald's and Johnson and johnson. Both around 3.5% divs. plus both global growth stocks (I don't want a us only based company) and mcds apparently quite under valued/ cheap right now

[Microwave]

Apple (AAPL) is a dividend stock now, one which I consider as a long-term holding.

Edited August 2, 2012 by Microwave

[gk10002000]

Open an Etrade or Scotttrade or Schwab account. I use Etrade. I have a lot in ATT stock symbol T. Stock is very solid. Just had a good run up in price so the dividend is just below 5%. I bought in at 26 and 28 so my original monies are earning over 6%. 3,000 shares. GE is still priced well and dividends are probably increasing slightly each year. I also have and like: AZN, COP. I also have as an income generator: ARR. Mutual fund PRHYX pays over 7%. Lots of Municipal Bonds and Muni bond funds that are tax and amt free. Two funds: PZA and PRTAX. All a bit pricey now to buy in to, but very solid.

[thrilled]

I have a schwab account.They do A good job.

Any of these companies do good, proctor and gamble,mcdonalds,walmart,chevron,phillip morris.

They are as safe as any large company.they all pay dividends.

[yoshiwara]

I think I will buy McDonald's and Johnson and johnson. Both around 3.5% divs. plus both global growth stocks (I don't want a us only based company) and mcds apparently quite under valued/ cheap right now

I do like the occasional McDonald's pineapple pie and I use Johnson and Johnson's baby talc so I guess that is some type of endorsement.

[Microwave]

ExxonMobil is also an excellent blue chip dividend stock.

[Thailand J]

I prefer funds over stocks.

I have Vanguard High Dividend Yield ETF (VYM) & Vanguard Dividend Growth Fund ( VDIGX), VYM is doing better than VDIGX.

For income investment Vanguard High Yield Corporate (VWEAX) pays 5-6%. I also have Fidelity Floating Rate High Income (FFRHX) paying only 3.5% may be I should sell it.

[elektrified]

'er put more in Shell.

I've been reinvesting my dividends in Royal Dutch Shell for many years now. Good advice. Oil will continue to climb...supply and demand...

[elektrified]

I prefer funds over stocks.

I have Vanguard High Dividend Yield ETF (VYM) & Vanguard Dividend Growth Fund ( VDIGX), VYM is doing better than VDIGX.

For income investment Vanguard High Yield Corporate (VWEAX) pays 5-6%. I also have Fidelity Floating Rate High Income (FFRHX) paying only 3.5% may be I should sell it.

I don't like mutual funds at all and much prefer stocks. But to each their own.

[elektrified]

Why U.S. shares? I much prefer Swiss shares. When the USD and a few other currencies have all crashed, the CHF will still be there!

[yoshiwara]

'er put more in Shell.

I've been reinvesting my dividends in Royal Dutch Shell for many years now. Good advice. Oil will continue to climb...supply and demand...

There is one other share, like Shell, which is quoted on the Dutch, UK and US exchanges worth investing in as blue-chip 'safety' with a reasonable dividend and that is Unilever. (NYSE:UL)

[fletchsmile]

Also linked into your day trading/ swing trading thread - not US, but UK. I think Stan Chart looks interesting, for a short term trade. Oversold in my view.

The regulatory accusation by US govt wiped off over GBP 8 bio off it's market value at one point today. That is way over done in my view. If you believe the US won't revoke its banking licence (highly unlikely in my view) then this represents a good opportunity to pick up a quality stock cheap. Rising profits for about 10 successive years. Very good bank reputation from a profit and regulatory point of view prior to this. Most likely outcome would be a fine if proven correct, and can't see that above GBP 1bio.

I bought some around GBP 1,125 today - low was 1093, and it is bouncing back...

Really can't see this impacting the dividend much either, which now stands at 4.6% should you wish to hold longer term. Strategic focus on Asia makes sense.

Edited August 7, 2012 by fletchsmile

[fletchsmile]

On the subject of naughty banks I also happen to like JPM Morgan. Div yield is about 3.3% which is not bad for a US company. It was out of favour after their trading mishaps, which again to me was a buying opportunity, and I picked up some more around USD 34. Think around USD 45 is a reasonable target for this within a year, suggesting possible 20%+ capital upside too, and P/E is around 8.9.

Edited August 7, 2012 by fletchsmile

[ExpatJ]

Fletch. Interesting plays, I like your thinking I did similar yesterday. Bought pttep in Thailand which is oversold because of a bad take over recently by the company plus they are issuing more stock end of year. Both factors caused massive sell off , overdone in my opinion so I bought ( and oil prices are rising again which will help with price )

[fletchsmile]

Sold my STAN shares at 1206p, as they looked to be dipping again. Looks like I may have been a little early as they are up around 1225p now

As I just did it for a short term trade, and as it was in profit for over 5%, I thought I might as well take it before the market closes tonight - better than being greedy. Still think it's a good long term hold, and a buy as a longer term investment - just today's intention was to trade it. Not often these come up where I know the company well and get a quick in and out within a couple of hours for 5%+

Edit: And JPM up nicely today too. Must be my lucky day. Maybe should have left the Mrs. at home and gone on a night out with the lads....

Edited August 7, 2012 by fletchsmile

[ExpatJ]

Sold my STAN shares at 1206p, as they looked to be dipping again. Looks like I may have been a little early as they are up around 1225p now

As I just did it for a short term trade, and as it was in profit for over 5%, I thought I might as well take it before the market closes tonight - better than being greedy. Still think it's a good long term hold, and a buy as a longer term investment - just today's intention was to trade it. Not often these come up where I know the company well and get a quick in and out within a couple of hours for 5%+

Edit: And JPM up nicely today too. Must be my lucky day. Maybe should have left the Mrs. at home and gone on a night out with the lads....

A wise call i think- in this volatile market (and volatility is here to stay according to almost everyone on CNBC), trading (as opposed to buy and holding) and taking profits when you can is the way to go . Imagine buying a stock watch it run up over few years only to see it drop when you need to sell. Far better trading, taking the profits, building up your principal cash investment fund (exception if if the stock is a good dividend play).