By Guest Author: Tony Farrell (http://www.monthly-dividend-stocks.com)

Get my list of high yield monthly dividend stocks at http://www.monthly-dividend-stocks.com
My strategy: Research and discover all high yield monthly dividend payers, and start buying them up a whopping $ 200 or so worth at a time. WHAT?!?!? ARE YOU SERIOUS?!?!?!? Yes that’s right ONLY $ 200 each. If I had $ 20,000 to invest then I’d be acquiring about 96 positions at $ 200 each and paying the rest in trade commissions. Always get dividends paid in cash, make additional cash infusions when I can to accelerate the process, and use the cash to acquire more positions in other monthly dividend payers. Continue to buy more and more positions as enough cash becomes available, $ 200 or so at a time in each one, starting with higher risk / higher yield and working down to lower risk / lower yield (remember, time is on …

According to Johanna Bennett of Barrons, WITH STOCK VALUES PLUMMETING and bonds delivering measly returns, it’s a good time to start sniffing out shares with juicy dividends that are for keeps.

Track Johanna’s picks at:

http://trackthepros.com/stocks/category/632

To be sure, dividends generated by the Standard & Poor’s 500 Index are growing drastically slower in 2008 than experts forecast earlier this year.

And though they have fared better than the broader stock market so far this year, total returns from dividend-paying stocks tracked by Standard & Poor’s have fallen almost 15%.  BUT, the best opportunities are in companies that have strong dividends and histories increasing the dividend with balance sheets and expected earnings that will allow continued payments (and increases):

Dividends Can Yield

Some companies with the ability to increase dividends

Company Ticker Mkt Cap Yield EPS ...

MARKET COMMENT

July 23, 2008

Manipulation? Well, it’s pretty plain when the government deliberately releases a horrible Beige Book report early to coincide with BAC’s announcement to buy back 75M shares of stock and maintain its dividend–you know the fix is in. Do you wonder where the money will come from to pay this dividend and buy more stock if not from taxpayers via the discount window?

Do you realize that the Fed can buy GSE bonds [FNM & FRE for example] directly? These outfits can then just issue debt, sell it to the Fed and, presto!, money is created from rubbish? Do you then wonder why gold prices would fall and the dollar rally? I do and it gives me a headache. But not many are paying attention since they’re scrambling over one another to buy …

Just wait until Bank of America (NYSE:BAC) cuts their dividend, then how low will shares get? Barron's lowered their outlook on BAC last week.  They now expect BofA's 2008 and 2009 earnings-per-share estimates to $2.20/$3.60 (from $2.70/4.00), largely reflecting continued uncertainty on the credit front and a more-conservative view of structured products/capital markets near term. Our second-quarter 2008 EPS estimate falls to 55 cents from 79 cents. Barron's ...

Forbes columnist Zack O’Malley Greenburg, said that many European banks are healthy and look like innocent victims of the subprime mess, and they are less likely to cut dividends.  He recommends the following banks as those likely to bounce back:

a. Allied Irish Banks

b. Banco Santander

c. Bank of Ireland

d. BNP Paribas -4% dividend

e. Commerzbank -4% dividend

f. HSBC Holdings

g. Societe General

h. Swedbank

Track Zack’s picks at:

http://www.trackthepros.com/categories.php?category_id=270

Ken Fisher recommended the following stocks in the July 21 issue of Forbes:

Dow Chemical:

a. superbly managed largest chemical company in the U.S.

b. Should overtake BASF someday as largest in world

c. sells only at 60% of revenue, 12 times 2008 earnings

d. 4.5% dividend

Rohm & Haas

a. owns Morton Salt

b. produces specialty chemicals

c. bought back 18% of shares in past four years

d. Sells at 1.1 times annual revenues, 11x 2008 forecasted earnings

e. 3.1% dividend

Franklin Resources

a. world leader in mutual funds

b. as stock prices rise, Franklin’s revenues rise

c. great CEO

d. should sell for more than 12.5x 2008 earnings

Ball

a. U.S. leader in metal and plastics containers

b. growing market share in a slow growth field

c. stock should do well when U.S stocks rally

d. sells at 70% of revenues and 12x 2008 earnings forecast

Merck and Pfizer

a. both are too cheap

b. congress isn;t going to kill prescription industry

c. selling at 10x and 7x 2008 forecasted earnings

...

Circuit City Falls, Cuts Dividend; Mitsubishi Working on Plug-In Line; Continental and United Buddy Up; Western Oil Back in Iraq; Citi CFO Sees More Trouble; Bear Stearns Execs Arrested; Transocean and BP Extend Drilling Contract; Bank of America to Takeover Countrywide by July In reporting a $164.8 million loss (or $1 per share), electronics retailer Circuit City Stores Inc. (CC) suspended its 4-cent dividend. The company also forecast a wider second-quarter loss but said it expects a “gradual recovery” in the second half, Reuters reported. Mitsubishi Motors Corp. (PINK: MMTOF) plans to introduce a line of plug-in hybrids as soon as 2013. The company’s all-electric i MiEV minicar plans to be charged from a standard electric outlet. About 1,000 of them will go on sale to fleet customers starting April 1, 2009, Bloomberg reported. Continental Airlines ...

By Jennifer Yousfi Managing Editor Fifth Third Bancorp (FITB) just became the latest in a string of hard-hit financial firms to slash its dividend to preserve much-needed cash. Yesterday (Wednesday),the Ohio-based regional bank slashed its dividend to 15 cents down from 44 cents, becoming the 17th company to reduce or eliminate its dividend completely this year, Bloomberg News reported. Fifth Third certainly wasn’t the first bank to have to resort to this unpopular measure, nor will it be the last. Financial firms of every stripe have taken a beating from the subprime mortgage crisis that has accounted for $396 billion in write-downs so far. From national consumer banks such as Wachovia Corp. (WB) to the regional banks such as Fifth Third, everyone’s feeling the pinch. As stock prices continue to plunge and liquidity becomes alarmingly scarce, the banks have to evaluate ...

Yodel for profit: In “Great Dividend Plays from Switzerland” which company did David Costa recommend?

Investors should look at Adecco because it has international operations, modest growth and it is paying a decent dividend of over 2 percent, Costa told “Power Lunch Europe” Thursday.

I don't actually know how long is now the time to buy financials has been part and parcel of every interview and while I have been underweight for ages, and still am, there is one aspect to this whole meltdown that we need to keep in mind.An aspect that could be relevant especially if one year or two year performance does not matter.Of the larger financial companies, will there be any that fail as a result of the entire event still unwinding? I believe Bear Stearns market cap topped out in the $20 billion range and if that is correct I would not say it was that large.Obviously some folks think there will be failures and with history as a guide there might be one or two which would not be a lot. Point ...