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Jul.11
9:59 AM ET

Jeffery Saut, chief investment strategist at Raymond James, and Allan Nichols, equities strategist at Morningstar, shared their insights on dividend stocks.

Nichols says there generally is “more stability internationally” than in the U.S., especially in the big cap names.

Saut recommends:

Linn Energy [LINE  Loading...      ()   ] – “It has an 11 percent dividend.”

Magellan Midstream [MGG  Loading...      ()   ]

Schering Plough [SGP  Loading...      ()   ] – “Has a 7 percent dividend yield even though the shares have rallied from about 150 in March, to roughly $200 a share right now.”

Saut cautioned investors about the financial sector. “We have avoided financials for years. I haven’t been able to figure out the bank accounting for the past seven, eight years -- so we’ve totally avoided them.”

Disclosure:

Nichols owns BP stock and Saut owns shares of LINE, MGG and SGP. No information on Raymond James and Morningstar were available.

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