In this time of increasing uncertainty investors are flocking to quality high yielding stocks to lock in some form of income as equities around the world plunge. In the face of severe volatility in which certain sectors are in favor one day and out of favor the next all pundits, whether on CNBC or you advisor, agree that equities with this attribute are worth putting money into. All last week Jim Cramer professed that high quality high yielding stocks was a good place to be because quality stocks have gotten beaten down along with market to where they now have unbelievable yields. MSB at $15.18 is yielding 19%. It currently declared a $1.25 dividend on top of a $1 distribution 7/18/2008. This is a company that has been increasing its distributions in an environment where many firms are either cutting or all together halting payouts. Year over year it increased its pay out by 60% and its prospects still bright. Here is a breakdown of its pay outs quarter to quarter year over year.
October 16 - $1.25 vs .48
July 18 - $1 vs .31
April 11 - .12 vs .045
January 11 - .515 vs .315
Beaten down to $10.50 in the recent market havoc MSB has recovered 50% so far and is still paying out 19%. With an all time high of $31.7, the potential upside is huge!!! Even if it levels off and trades at these levels a 19% yield in this environment with a growing distribution is not too shabby.
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