High Beta Dividends Portfolio - Stockpickr! Your Source for Stock Ideas

High Beta Dividends

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Created by stockvector

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Date updated:03-19-2008

Although I don't like to equate gambling to investing, money management rules of professional gamblers still apply. Professional gamblers are able to manage the swings by "playing with the houses money" and then gradually taking the houses money off the table as they win, to lock in profit. This stock screen for high beta dividends gives you the chance to do that.

The theory behind these is you will use them in one of two ways but for one goal... Play with the houses money as fast as possible. You buy all sell most, and leave a small amount in. With undervalued stocks this works well, but is very difficult to get the swings in order to play with the houses money. But with high yielding high beta dividend stocks, even if you still don't have all of your money out, as dividends are paid, you will poclet some of your money, and as the stock gets higher, you will continue to "pocket" your profit.

In the long run, this allows you to gradually accumulate a large portfolio of income paying assets, and as you get older, they will become more useful, and if you invested well eventually enable you to just live off the dividend checks.
The process is: Money in, money out, but leaving a small percent of your original position in. Find a new stock and repeat.

The ways you do this is that you either use technical analysis and buy a high beta dividend stock at breakout using a stop buy, and then either a stop limit to control how much profit you take, or just by watching it and selling on your own.

OR

You buy one of these low, and use the volitility to either get it lower and buy more but eventually the volitility will bring it higher and you can sell.

These are not prescreened for value or PEG or anything, they are just stocks over 300M market cap with betas above 1.7, and dividend yields above 5%.
For those wondering, betas are a measure of volitility, and a beta of 2 would represent a stock that is twice as volatile as the market.

These are not for random gambles, you must research these or you are no worse than a blackjack player who doesn't know the odds.

In addition, this method if executed correctly offers a sort of "market darwinism" where the stocks that do well over the years will raise in price and raice their dividend, where the ones that don't will eventually either pay you out dividends until you own a very small percentage of the stock so it doesn't matter, or until the stock crashes or is bought out, but either way, you never really have a large stake in a poor company, unless you buy it in the first place.

FYI: Highest Beta was NCT at 2.5...
Couldn't add a new portfolio for some reason (that I'm aware of) so I had to edit an old one

ABH
BLX
BEE
CIT
CFC
CSE
DLX
FMD
FCH
FRP
HNP
GEL
GKK
GLNG
ING
IIF
KRG
MOD
MBI
NCT
OHI
PCU
Q
SBGI
SCGLY
SHO
SPIL
TMS
UNTD
UTR
TRMD

ABH
Abitibibowater In
$1.51
+2.03%
$1.49

No Analysis added

People owning ABH also tend to own: ACF BAM CHB CY FCX ORSD.L SCHN

TheStreet.com Rating: D What is this?

BLX
Banco Latin Amer
$10.72
-2.55%
$10.49

No Analysis added

People owning BLX also tend to own: CHK CHL HLS INTC JEQ KR LLY

TheStreet.com Rating: C What is this?

BEE
Strategic Hotels
$5.28
+21.66%
$4.25

No Analysis added

People owning BEE also tend to own: CEO FCH FMER MO MRBK SHO AEOS

TheStreet.com Rating: C What is this?

CIT
Cit Group Inc (de
$4.64
+1.09%
$4.36

No Analysis added

People owning CIT also tend to own: AHM AIZ ALB AMP AVT AXCA BBI

TheStreet.com Rating: D+ What is this?

CFC
Cfc
$0.00
N/A
$N/A

No Analysis added

People owning CFC also tend to own: ABK BBD DE FCX FRE FWLT HES

TheStreet.com Rating: C What is this?

CSE
Capitalsource Inc
$10.70
+28.45%
$8.22

No Analysis added

People owning CSE also tend to own: AUY BP KEY LMT LUNA PEG PWE

TheStreet.com Rating: C- What is this?

DLX
Deluxe Cp
$8.90
-1.66%
$8.01

No Analysis added

People owning DLX also tend to own: DEBS EXPO HRB KCP LEN LIZ MDC

TheStreet.com Rating: C What is this?

FMD
First Marblehead
$1.41
+4.44%
$1.40

No Analysis added

People owning FMD also tend to own: ABT DGX EPD GSK JNJ JOSB JTX

TheStreet.com Rating: D What is this?

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