Top Dividend Stocks

PUBLISHED: Sep 18 2012 @ 11:15 | Comments (0) | More info about Ed Liston

U.S. equity market is struggling for direction in trading today as investors remain on the sidelines after last week’s rally, which was sparked by the launch of QE3.

The announcement of new bond buying program from the Federal Reserve has boosted investors’ risk appetite. The Fed also announced that it is likely to keep interest rates at record low levels until mid-2015.

The best strategy right now of course is to go long on growth stocks. But, I would still recommend including some dividend stocks in your portfolio. Here are some top yielding dividend stocks.

Eli Lilly (NYSE:LLY): The global biopharmaceutical company currently has a dividend yield of 4.17%, which is amongst the highest in the Healthcare sector. LLY shares are currently trading around $47, up 0.35% from Monday’s closing price. YTD, LLY shares have gained more than 13%, compared to a gain of more than 16% for the S&P 500.

LLY shares are currently trading close to their 52-week high of $47.26. The stock is trading above its 50-day and 200-day moving averages, which is a bullish signal.

LLY has a P/E ratio of 12.97, which is below the Industry average of 16.67.

Bristol-Myers Squibb Co. (NYSE:BMY): BMY is another company in the Healthcare sector with a high dividend yield. BMY has a dividend yield of 4.12%.

BMY shares are currently trading around $33, down 0.2% from Monday’s closing price. With a P/E ratio of 15.83, which is below the Industry average, BMY looks attractively valued. YTD, BMY shares have underperformed the S&P 500, falling more than 6%.

BMY shares are trading below their 52-week high of $36.34. BMY shares have seen a slight pullback after having a good run in the last one month. The slight dip in BMY shares is a good opportunity to open a long position in the stock.

BMY shares are still trading above their 200-day moving average.

Avon Products Inc. (NYSE:AVP): The beauty products maker currently has a dividend yield of 5.73%. AVP shares are currently trading around $16.05, down 0.5% from Monday’s closing price.

AVP has underperformed the S&P 500 this year, falling more than 8% YTD. But, technical indicators indicate that the bearish trend is over. AVP has crossed its 200-day moving average, while the MACD line for AVP has crossed the signal line.

AVP’s P/E ratio of 28.03 is higher the Personal Products Industry average of 21.25.

Altria Group Inc. (NYSE:MO): The Richmond-based tobacco company currently has a dividend yield of 5.29%. MO shares are currently trading around $33.25, up nearly 0.15% from Monday’s closing price.

YTD, MO shares have gained more than 12%. The stock is trading below its 52-week high of $36.29, so there is still some upside potential from current level.

MO shares have traded in a tight range in the last few days. But, the stock has support at around $33. The stock is still trading well above its 200-day moving average. MO has faced stiff resistance at around $34. If the stock breaks through this level, there is some upside potential.

MO has a P/E ratio of 15.32, which is below the Industry average of 18.09.MO looks attractively valued at current levels.

Lorillard Inc. (NYSE:LO): The Greensboro, North Carolina-based tobacco company is also attractively valued right now. LO has a P/E ratio of 14.40 and a dividend yield of 5.19%.

LO is currently trading around $119.50, up more than 2% from Monday’s closing price. YTD, LO shares have gained more than 4%.

LO is trading well below its 52-week high of $141.07. Technical indicators for the stock indicate that the bearish trend is now over. The stock has likely bottomed out and I expect a rebound.

Windstream Corporation (NASDAQ:WIN): WIN currently has a dividend yield of 9.28%. Shares of the advanced communications and technology solutions provider is currently trading around $10.75, down 0.6% from Monday’s closing price.

WIN has underperformed the S&P 500 this year, falling more than 8% YTD.

WIN has a 52-week high of $13.08. The stock has had a good run since late August. I expect a slight pullback from current level, which should be a good buying opportunity.

WIN’s P/E ratio of 35.86 is well below the Industry average of 43.11 so the stock is attractively valued right now.

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.