5 High Yielding Low Debt Dividend Plays For 2012

Many investors are attracted to companies paying monster dividends when looking for stocks that generate income, but as we know the greater the return the greater the risk, and with many of these companies being REITs such as Annaly Capital Management (NLY), which pays a dividend with a yield of 14%, it is likely they won't be able to sustain dividend yields as interest rates rise due to economic recovery gaining momentum. Therefore, as the dividend drops so will the stock price. This means that not only will income hungry investors see their income drop but so will the capital value of their investment. When choosing dividend stocks I prefer those companies that can pay a dividend which is roughly twice the risk free rate and higher than inflation, yet have a stable balance sheet with minimal leverage and low price volatility. In this article I have selected five stocks... Read more