Find Comfort in These Dividend-Paying Stocks: Strategist
When the market is weak, there's nothing more comforting than dividend-paying stocks, Paul Hickey of Bespoke Investment Group told CNBC Monday.
There are high-dividend-paying companies across all industries, he said, and his company highlighted them in a report earlier this month. Some of those paying dividends this month include PDL BioPharma at 10.6 percent, Lincoln Education Services at 9.7 percent and Southern Copper Corp. at 8.48 percent.
One of the companies that surprised him is a movie-related company, National Cinemedia, , which runs an in-theater advertising network and has a 7.07 percent dividend yield. The company has raised its dividend for the last four years, he said, noting, "During economic weakness, people still go to the movies."
Stocks provide better yield than Treasurys, he said.
"If you have 30 stocks in the [Standard & Poor's 500 index] yielding more than 5 percent and the stocks are treated better on a tax basis than Treasurys as well, it’s hard to see where you can go wrong," Hickey said.
While investors have to do their own due diligence, his company's list is "a starting point for investors to get some yield, insulate themselves from the high volatility and sleep a little bit better at night."
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Disclosure information was not available for Paul Hickey or his company.