Shorting a High Dividend Stock

Posted by: : Paul EbelingPosted on: July 26, 2013 Shorting a High Dividend Stock

MO, AEP, NLY, T, DUK, GE, KMB, KMP, MRK, PG, RAI, VZ

 

Short seller conviction

It takes conviction to Short sell a stock that  has a very high dividend; added to paying a Broker Loan-Call Rate to  borrow the stock, the dividend payoutshave to be paid and the ex-dividend dates play into the equation too.

Short Selling Diagram

Short sellers continue to keep their bets against many of the top  defensive high-yield dividend stocks. Increased volatility in June and rising interest rates are obviously  making Short sellers get aggressive in some cases and lower their bets in others.

Short sellers are very active in the following issues;

The top dividend stocks for Short interest are as follows: 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).

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Paul Ebeling

Pattern Recognition Analyst, equities, commodities, forex
Paul Ebeling is best known for his work as writer and publisher of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly-regarded, weekly financial market letter, where he enjoys an international audience among opinion makers, business leaders, and respected organizations. Something of a pioneer in online stock market and commodities discussion and analysis, Ebeling has been online since 1994. He has studied and worked in the global financial and stock markets since 1984.
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