In Case You Missed it – Dividends, Interest etc.

In case you missed it the first time around, now is an even better time to get into financials. WB now sports a dividend of 8.3%. It is unlikely that the bank will cut its dividend and even if it halves the dividend to 4.2% that is still better than the best non-promotional savings rate you can find. The best I found was Amboy Direct at 3.75%.

Also it is likely that the Fed will continue it’s rate cuts and bring down savings rates even further and making large financial stocks even more attractive. e.g. BAC (6.75% Dividend). Even Citigroup after it’s dividend cut yeilds over 5% now (not that I’m recommending it, just pointing out the dividend).

If you feel uncomfortable about financials, maybe you cna look at other dividend paying stocks which have been battered – MO – 4.1%, KFT – 3.45%. Even INTC is paying 2.5% at current prices. So if it pays dividend and is unlikely to cut the dividend, you are probably good for the long run. For the next year or two however, be prepared for a rough ride.

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