It’s no secret that stocks have had a tough year, stung by a steady stream of weak economic data. That’s the bad news. The good news is that this development has created some very compelling dividend yields. With share prices down sharply on the year, yields have spiked higher, creating an excellent opportunity to score big yields and provide your portfolio with a steady stream of income.

History Speaks Volumes

On a historical basis, dividend stocks have produced roughly 40% of all stock market returns. According to Standard and Poor’s, this number shrank to 28% in the eighties and just 16% in the 90’s when red-hot technology stocks dominated the world of investing.

This is a testament to the ability of dividend stocks to support an investors portfolio when capital gains become more elusive. So on that note, we are going to shift gears and profile some high yielding dividend stocks with excellent fundamentals.

Awesome Dividend Stocks

Williams Pipeline Partners L.P. (WMZ) owns and operates natural gas transportation and storage assets in the United States. As a limited partnership, this company makes quarterly cash distributions to its shareholders, which stands at $1.03 per unit through the first 3 quarters of 2008. With shares currently trading at $15, this is a nice yield for a company operating in a a growth sector with no debt.

World Wrestling Entertainment, Inc. (WWE) owns and operates the World Wrestling Brand. WWE’s share price has traded lower over the last few months, but the upside of this development is that it has created a compelling dividend opportunity, which is currently yielding more than 10%. Capital appreciation is a legitimate possibility as well, with the analyst community projecting 18% earnings growth in the next-year period.

Frontline Shipping Ltd. (FRO) owns and operates a fleet of oil and dry bulk shipping vessels. This company is notorious for paying a huge dividend, which totaled $3 in its most recent quarter. The recent decline in energy prices may put the kibosh on dividends of this stature, but expect Frontline to continue to reward investors with sizeable yields.

Abbot Laboratories (ABT) is a global leader in the development of healthcare products. Abbot’s yield isn’t as big as the previously mentioned companies, but this stock has the capacity to add a nice element of stability in a very volatile market. The company’s dividend yield currently stands at 2.60%, and its share price continues to weather the economic storm in an impressive fashion.

Conclusion

Dividend stocks have once again fallen back in favor as investors flock to the higher yields and the stability of a guaranteed stream of income. With share prices down, this is the perfect time to capitalize on a unique opportunity to scoop up great stocks with impressive yields.

    Posted in Stock market from Investor on 18. Nov. 2008