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Current DateTime: 06:11:50 17 Jan 2009
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    • An Image of Satyam's Swandive

        Earlier this week, a reader of my India market newsletter asked if I could analyze Satyam Computer Services. I prepared these notes based on the weekly and the daily chart. On Thursday morning, I returned from Beijing to find the same stock was front page news. These are the notes prepared three days before the breaking news.

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Do you believe that financials, pharma and telecom can maintain through an economic downturn?

If so, you might want to take a look at the Dow Industrials where some of the largest companies in the world are currently offering investors notably large dividend yields.

Bank of America
Nell Redmond / AP
A Bank of America branch.

Bank of America [BAC  Loading...      ()   ] and Citigroup [C  Loading...      ()   ] lead the list yielding at 8.3% and 6.9% respectively.

Pfizer [PFE  Loading...      ()   ] comes in third with a 6.4% yield.

Telecom stocks AT&T [T  Loading...      ()   ] and Verizon [VZ  Loading...      ()   ] round out the top five with each yielding 5.1%.

Dividends are a great way to achieve profits each quarter in a holding without having to sell your position.

However, stocks facing a downturn could either end up cutting or eliminating dividends all together. Take General Motors [GM  Loading...      ()   ] for example.  Their shares were yielding about 5% back in March, but have since suspended their dividend completely.

Here's the complete list (as of the 8/15 close):

  Highest Yielders On The Dow Industrials
SymbolDividend Yield (%)
HighestBAC8.3
C6.9
PFE6.4
T5.1
VZ5.1
GE4.2
MRK4.2
JPM4.0
AIG3.8
DD3.6
HD3.3
CVX3.1
Average---3.1
KO2.8
MMM2.7
JNJ2.6
Median---2.6
BA2.5
CAT2.4
MCD2.4
INTC2.3
PG2.2
AA2.1
UTX1.9
WMT1.9
AXP1.8
IBM1.6
MSFT1.6
XOM1.6
DIS1.1
HPQ0.7
LowestGMN/A
Source: CNBC.com (Yield based on closing prices as of Aug 15, 2008)

© 2008 CNBC.com

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