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
- Grantham Says Fed "Bound And Determined" To Engineer "Full-Fledged Bubble" | ZeroHedge
- Markets Waiting for Bad 1st Quarter GDP | Financial Sense
- The Secret Mountain Our Spies Will Hide In When Washington Is Destroyed | ZeroHedge
- "Peak" Clinton? | ZeroHedge
- Dollar's Demise Exaggerated: Technicals Anticipate Turn in Fundamentals | ZeroHedge
- "Hedge!!" | ZeroHedge
- Lowes Drops After Lumber Liquidators' Short Says They Also Sold Toxic Flooring | ZeroHedge
The most relevant financial news and articles from the Internets
- The 24 people who will decide the future of music streaming | Business Insider
- Here's what people would look like if their faces were symmetrical | Business Insider
- US oil rig count falls for 21st straight week (WTI, USO, OIL, VDE, RIG) | Business Insider
- The 7 best headphones you can get this weekend for under $20 | Business Insider
- Legendary investor Ben Horowitz on how an ‘accidental’ investment... | Business Insider
- Setting up a lab able to genetically modify human embryos could cost less than $... | Business Insider
- The Best Business Schools of 2011 | BusinessWeek