Options Action: Dividend Plays

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Almost 10% of S&P 500 companies cut their dividend payments in 2008. In fact, 2008 showed the lowest level of dividend growth since 2001, when they fell 3.3%!

What’s your best dividend play for 2009? According to Stacey Gilbert, Susquehanna Capital Group market strategist, you might want to check out the following three stocks.

Gilbert’s Favorite Dividends Plays For 2009

Stock Yield
Bristol Myers (BMY) 4.6%
Home Depot (HD) 4%
Nucor (NUE) 3%

Source: Susquehanna Capital

Gilbert finds these stocks attractive because options action suggests they will not cut their dividends. (If a dividend yield was in question, options action should, in theory, price in that risk.)

However, she also says don’t chase these stocks. Maybe just put them on your radar.

Want to know more about these stocks including Gilbert’s option trades? Watch the video now!


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Trader disclosure: On Jan 2, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders:Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE): Macke Owns (MCD), (WMT), (TM), (DIS): Kinahan Owns (DELL), (GE), (HD), (HPQ), (INTC), (LEHMQ), (C ), (YHOO): Kinahan Is Short (BAC) Puts, (CSCO) Puts, (MSFT) Puts

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Susquehanna Capital Group Is A Market Maker In (BMY)
Susquehanna Capital Group Is A Market Maker In (HD)
Susquehanna Capital Group Is A Market Maker In (NUE)
Susquehanna Capital Group Is A Market Maker In (PCL)

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