It was another roller-coaster day for the markets yesterday. The
dead-cat bounce we saw Tuesday morning was replaced by renewed
fears on Wednesday. With all the volatility, investors remain
understandably concerned about what will happen next.
So what is the next step?
At this point, cashing out may seem like the best option. But
I'm here to tell you that's the last thing you want to do.
Without a doubt, the market has hit a rough patch, but that
doesn't mean it is time to pack up and get out of Dodge.
The trick to getting the most out of your investment capital
is knowing the best type of positions to invest in for any given
situation. In this shaky market environment, smart investors will
flock to stocks that offer stability. If you're looking for
positions that will offer added security and great long-term
investment potential to your portfolio, then dividend stocks are
the way to go.
These positions offer investors regular dividend payments and
a level of security other investments can't match. Usually every
quarter, companies will take their excess earnings and use them
to pay investors a percentage of their stock's market value. This
added incentive makes dividend stocks great long-term picks.
Here's a look at the three high-yield dividend stocks that are
great buys right now:
Reynolds American Inc.
) is the second-largest tobacco manufacturer in the United
States. RAI was created from the merger of R.J. Reynolds Tobacco
Holdings and Brown & Williamson. R.J. Reynolds was facing
increasing competition and needed to cut its operating costs, so
it convinced Brown & Williamson, then the third-largest
tobacco producer, to agree to a merger. Reynolds American's RJR
Tobacco unit boasts 5 of the 10 best-selling brands of cigarettes
in the U.S., namely Camel, Kool, Pall Mall, Doral and
One of the reasons that makes this stock so attractive is its
impressive 5.5% dividend yield. The company pays a quarterly
dividend of $2.12 to investors. Reynolds is a solid company with
strong fundamentals that won't be slowing down anytime soon.
CPFL Energia S.A. (ADR)
) is a rapidly expanding Latin American utilities company. The
company is one of the largest electricity providers in Brazil.
CPFL distributes electricity to approximately 6.4 million
customers throughout 570 communities, primarily in the states of
Sao Paulo and Rio Grande do Sul.
The company boasts a nice 4.4% yield. Investors enjoy a $1.27
quarterly payoff. Brazil remains one of the hottest emerging
markets in the world. The country and the entire Latin American
region will continue to enjoy some of the fastest-growing
economies. As a result companies like CPFL Energia is going to
keep growing and the stock's dividend yield expand along with
Finally, we have another big-ticket Brazilian company.
Companhia de Bebidas das Americas
), better known as AmBev, dominates the Brazilian beer market
with brands such as Antarctica, Brahma and Skol. Additionally,
the company sells Pepsi brands, Lipton iced tea and other
beverages that include mineral water and sports drinks. Along
with Brazil, AmBev sells its products in some 13 other
Brazil, in particular, is bursting at the seams with ripe
investment opportunities as the economy rapidly expands and more
money flows into the country. AmBev is one company benefiting
from the Brazilian boom and is sharing the wealth with its
investors. ABV offers a 4.7% yield and pays shareholders $1.47
per share owned.
These three companies are exactly the type of stocks you want
to be in the current market conditions. Dividend stocks offer the
exact type of stability you need to make it through these tough
times and come out on top. So be sure to snatch up some shares of
these great stocks while prices are low and there are tremendous
gains to be made when trading volumes rebound.