TIP OF THE WEEK - Quickly Find High Dividend Stocks in Very Specific Industries to Diversify Your Portfolio.

Quickly Find High Dividend Stocks in Very Specific Industries to Diversify Your Portfolio.

Jason Brizic

Feb. 25, 2011

Are you having trouble quickly finding high dividend stocks in for your diversified portfolio?  This tip should help you save time finding high dividend stocks in specific industries.

Ycharts.com can help you find high dividend stocks in very specific industries.  Google Finance’s stock screener is a more of a blunt instrument compared to www.ycharts.com drill down features.  Click on the website’s Sectors tab then follow these instructions.

You can quickly compare two measurements on their charts and you can sort by those same measurements in the table data below the chart.  I set the Y-axis to dividend yield and the X-axis to PE Ratio because I’m looking for high dividends and low PEs.  However, you could also set the metrics to dozens of different combinations.  For example, you could use Price to Sales vs Price to Book Value to find extreme value/contrarian stocks that probably don’t have a dividend.

I’ve written several articles on one of my favorite high dividend stocks.  The stock is Safe Bulkers Inc. (SB).  Click on this link to see the results for the shipping industry:

http://ycharts.com/industries/Shipping/dividend_yield,pe_ratio

Safe Bulkers is amongst the highest dividend yielders with one of the lowest P/E ratio.  I’ve done the fundamental analysis on them, so I know they are solid on earning power and possess a strong balance sheet.

I’m visually screening for stocks with dividend yields over 6% and a P/E less than 25 (preferably under 12).  Some new names jump out at me on the dividend yield vs P/E ratio charts: Paragon Shipping, Knightsbridge Tankers, Navios Maritime Partners, and Teekay Tankers.  I will go investigate the fundamentals (dividend record, earnings power, and strength of balance sheet) to determine if any are worthy of purchase and at what price.

You can go back up the hierarchy to get to other sectors | sub-sectors | niche-sectors

For more tips, go here:

http://www.myhighdividendstocks.com/category/tip-of-the-week