Short Sellers Pile On and Attack High-Yield Dividend Stocks like AT&T should start to cover now: Ex dividend is coming!!!!
Short Sellers Pile On and Attack High-Yield Dividend Stocks
By Jon C. Ogg September 25, 2013 9:40 am EDT
Short sellers have increased their bets against the stable high-dividend stocks that are in most Americans’ retirement accounts and mutual funds. In fact, the mid-September short interest saw year highs in many cases. Only a few of our key dividend holdings saw the short interest decline compared to the end of August.
We tracked the short interest in the following top dividend stocks: Altria Group Inc. (NYSE: MO), American Electric Power Co. Inc. (NYSE: AEP), Annaly Capital Management Inc. (NYSE: NLY), AT&T Inc. (NYSE: T), Duke Energy Corp. (NYSE: DUK), General Electric Co. (NYSE: GE), Kimberly-Clark Corp. (NYSE: KMB), Kinder Morgan Energy Partners L.P. (NYSE: KMP), Merck & Co. Inc. (NYSE: MRK), Procter & Gamble Co. (NYSE: PG), Reynolds American Inc. (NYSE: RAI) and Verizon Communications Inc. (NYSE: VZ).
As we have said before, it takes much more conviction to short sell a stock that has a very high dividend. On top of having to pay a broker loan-call rate to borrow the stock, the dividend payouts have to be paid and the ex-dividend dates play into the equation as well. We compared the short interest settlement dates of August 30 versus September 13 and added color on each.
Altria Group Inc. (NYSE: MO) saw another boost in the short interest to 18.96 million shares from 18.03 million shares. This was the highest reading back to May. Altria’s yield is back up to about 5.4%, as the shares are down around $35 again.
American Electric Power Co. Inc. (NYSE: AEP) saw another jump in its short interest to 5.52 million shares from 5.15 million. This was the highest reading on short interest back to last October. AEP yields about 4.5% now that shares are under $45 again.
Would your investment capital be best-served elsewhere?
What if... instead of worrying about the short-term viability of your current investments... YOUR MONEY was on th
must be banksters who shorts from $39.... get the shares cheap to load all good dividend on rebate???? poor retail investors with fears....lol time to load up the truck.....when blood is on the street??? Warren Buffet where are you?? Carl Icahn where are you???