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Battle the Bear: Finding Yield

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Buried deep inside every trader is a treasure hunter on a quest to uncover the holy grail of hidden returns!

However, if you’ve invested in stocks, commodities or real estate over the last year, chances are you don’t feel like Indiana Jones. In fact, you’ve probably spent a good deal of time licking your wounds because most are trading lower.

What’s an investor to do?

Playing sectors is out of the question in this sideways market --- and Treasuries offer security but puny percentages. Nope, it’s time to forget returns.

So where’s the money hiding?

Maybe it’s trapped inside stocks with yield. However, broken-down blue chips such as Citigroup , GM, and most recently Bank of America are slashing their dividends. Where can you find a security that throws-off steady income while protecting your capital?

Karen Finerman has some thoughts on the matter; she recommends taking a closer look at Philip Morris International . Following are some key stats she put together for you.

Philip Morris International (PMI)

Yield: 5.28%
Balance Sheet: Modest Leverage
Access to Capital Markets: Healthy
Business Model: Sell Addictive Products
Result: Dividend Secure

At the same time, Finerman recommends steering clear of CBS. Here’s why.

CBS (CBS)

Yield: 15.6%
Balance Sheet: Burdened
Access to Capital Markets: Compromised
Business Model: Advertising Model In State of Decline
Result Dividend in Jeopardy


What’s the bottom line?
“Don’t just look for the highest dividend, it’s important to find one that will continue to pay!”


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Trader disclosure: On Jan. 22nd, 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 (AAPL), (BAC), (EEM), (F), (FXI); Macke Owns (MCD), (BAC), (C), (TM), (SDS); Adami Owns (AGU), (C), (BTU), (GS), (INTC), (MSFT), (NUE); Finerman's Firm Owns (MSFT), (UNH), (AET); Finerman's Firm Owns (DNA) & (DNA) Call Spread; Finerman's Firm Is Short (IYR), (IJR), (IWM), (MDY), (SPY), (USO), (ANF)


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