Thursday, January 28th, 2010
Three Dividend Stocks to Watch – JNJ, OKS, BTE
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Johnson & Johnson (NYSE:JNJ), Oneok Partners LP (NYSE:OKS), and Baytex Energy Trust (NYSE:BTE) are three dividend stocks to keep an eye in 2010.
Dividend stocks can be a great alternative to income investments, as they offer a combination of steady income and capital appreciation. However, there is also a greater risk in that the stock can decline and wipe out the income portion. As a result, we’ve compiled a list of three companies with a historically steady and safe dividend, as well as some potential for the upside.
A Safe and Steady Defensive Dividend
Johnson & Johnson (JNJ), one of the largest healthcare companies in the U.S., may not be the most attractive name during an economic recovery based on its reputation as a defensive play. Luckily, the stock is also known for paying a very steady dividend yield of about 3%, while the prospect of universal healthcare in the U.S. could ignite demand for its products.
A Solid High-Yielding Natural Gas Play
Oneok Partners LP (OKS), which stores and transports natural gas in the U.S., pays a hefty 7% dividend yield on its partnership shares. Moreover, the company has steadily increased its dividend since April 2006 by almost 40% in total. At the same time, many analysts are bullish on natural gas turning around as the energy markets work to establish a bottom.
A Foreign Trust that Keeps on Paying
Baytex Energy Trust (BTE), an open-ended investment trust focused on Canadian oil and natural gas properties, pays a dividend yield of approximately 7% and has been fairly consistent over the past several years. Meanwhile, Canada’s extensive oil resources and analyst projections of higher oil prices on the horizon make this a compelling play for 2010 and beyond.
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-- Written by Rick Telfur
