VZ

In general, the notable positive characteristics of tech titans are free cash flow, low level of debt (zero in many cases), higher gross margins, and cash on balance sheet. They are beginning to provide their extra cash as dividends to common shareholders. A look at full spectrum of tech corporations.

Dogs of the Dow is a strategy popularized by Michael O’Higgins where the ten highest yielding stocks in the Dow Jones Industrials Average are selected at the end of the each calendar year. Higher Yields typically works as a contrarian indicator as a way to identify bargains where the stock price has gotten low in relation to the dividend.

Investors need a solid defense right now, says Martin Denholm. This means holding high-dividend stocks. Consumer staples and telecoms industries are the best places to cherry pick strong companies. For a lower-risk alternative, try these two high-dividend ETFs (AMEX:SDY, PEY).

What if you don't want to spend your retirement managing and worrying about your portfolio? Put it on Auto Pilot, specifically on a Dividend Investing Auto Pilot. Dividends from a quality, well-diversified portfolio are much more predictable than capital gains and best of all, they are passive.

A roundup of last week's stock related blog posts.

The New York Times is reporting Verizon (VZ) is now considering a spin-off of its directories business instead of an outright sale, because it has been unable to get a private equity offer that was sufficient relative to the large tax charge such a sale would create. I've been watching this story, hoping for a spin-off, because it might create a seriously undervalued security. However, Verizon may be planning to burden the directories business with up to $9 billion in debt. As the business only had $3.4 billion in revenues and $1.03 billion in profits last year, this would be an extremely dangerous debt load for a declining business to carry.

Trent at Stock Market Beat digs deep into the accounting arcana associated with the treatment of wireless subsidiaries held by major telecom companies. After making adjustments for different accounting methods used by various telecom companies, Trent sees Verizon as a relative value bargain.