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Battle The Bear - Finding Yield

Monday, 9 Feb 2009 | 6:28 PM ET

In a tough bear market like this one, finding yield can be treacherous. But Karen Finerman has some ideas on where to look.

First things first -- what’s a dividend yield?

According to Investopdia, it’s “a financial ratio that shows how much a company pays out in dividends each year relative to its share price. It’s calculated as follows:

Annual Dividends Per Shares
Price Per Share

Typically, a higher dividend yield is considered desirable because it suggests a stock is under priced.

Now -- what's the trade?

Karen Finerman recommends looking at Philip Morris and Diageo. “They’re both companies with good balance sheets and their underlying businesses are stable,” she says.

And in case you’re wondering, Finerman says to avoid CBS and the N.Y. Times. She suggests CBS may have to cut their dividend and "the Times may have to cut further.”

Battle the Bear
The Fast Money traders look at which dividends are safe and help you battle the market bear.

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Trader disclosure: On Feb. 9th, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders;Seymour Owns (MT), (BAC), (EEM), (FCX), (VIP), (BIDU); Seymour's Firm Owns (VIP); Macke Owns (MOS), (TM), (SDS), (AAPL), (BAC), (DIS); Najarian Owns (FCX) & (FCX) Calls; Najarian Owns (MT) Calls, (GS) Calls; Najarian Owns (MSFT) & (MSFT) Short Calls; Najarian Owns (MS) & (MS) Short Calls; Najarian Owns (CAT) Call Spread, (ENER) Call Spread, (EEM) Call Spread, (GDX) Call Spread, (MOS) Call Spread; Najarian Owns (GE) Puts; Finerman's Firm Owns (MSFT), (PM), (RIG); Finerman's Firm Owns (DNA) & (DNA) Calls; Finerman's Firm Is Short (IYR), (IJR), (IWM), (MDY), (SPY), (USO)

  Price   Change %Change
CBS
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DGE
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NYT
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PM
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  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

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  • Finerman is president of Metropolitan Capital Advisors, Inc., a company she co-founded.

  • Founder of EmergingMoney.com

  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

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