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Profit Safely by Investing in High Dividend Stocks

Low-risk investments are few and far between in the current market environment. But if you're looking to boost the cash flow into your account, you can bank on high dividend stocks like Colgate-Palmolive (CL)! Some investors actually rely on such high dividend stocks in place of traditional retirement plans like a Roth 401k. They turn to these dividend-paying companies for financial support!

On July 13, Colgate-Palmolive announced quarterly cash dividends of 40 cents per share, or a yield of more than 2% at the company's current market price. This dividend is payable to investors as of August 15. The catch? You have to invest in CL by July 24 to be eligible for a slice of the payout pie! What are you waiting for? Buy Colgate-Palmolive now!

Don't get me wrong–not all high dividend stocks are good investments. Take Citigroup (C), for example, which has a dividend of about a buck and a quarter, or a yield of more than 8% at the current market price. Like most financial companies, Citigroup is on the list of stocks to sell in this current market. When the going gets tough, traditional dividend-paying companies withhold payouts as a way to cut an easy corner and pocket some extra cash. Case and point: Beleaguered automaker, General Motors (GM) announced last week that it would suspend its common stock dividend to shore up a quick cash-fix. Don't worry, CL won't follow suit–the company has paid dividends on its common stock without fail since 1895!

What's more, Colgate-Palmolive has weathered this current market remarkably well. Sure, there was a rough patch in June when the stock market went haywire, but this company still has strong fundamental value in my free PortfolioGrader Pro tool, which employs state-of-the-art stock analyzing software. CL's operating margin growth and return on equity are among the best in the market right now. And as a multinational corporation, damage to consumer spending in the U.S. hasn't affected Colgate-Palmolive (everybody still needs to brush their teeth and wash the dishes!), and a weak dollar compounded by the Fed's interest rate inaction has boosted sales abroad! So you see? Not only does CL offer a high dividend payout, but it offers a safe investment alternative to investors seeking shelter from the current market turmoil.

Colgate-Palmolive is an important part of my Blue Chip Growth Buy List. We have tons of great picks, including other high dividend stocks poised to cash in big now that it's earnings season! Find out the other great buys I have to offer you by subscribing to Blue Chip Growth now for the low price of just $149! Sign up today!

Michael P., 07.22.08:

Janice Patskowski, 07.22.08: