When it comes to dividends, some are wondering if things have become too good to be true. Of the companies in the Standard & Poor's 500, 46 are paying relatively fat annual dividend yields of 5% or more. Some of these cash payouts are real head-turners, including the 18.9% yield of investment firm American Capital (ACAS). Most of the mega dividends are coming from financial companies such as Bank of America (BAC) at 7.9% and Citigroup (C) at 6.1%, but some non-financials, such as drugmaker Pfizer (PFE)at 7.0%, are paying, too. Such yields are especially alluring to investors tired of getting low 3% returns even from high-yield savings accounts. And if the market has bottomed, and individual stocks have stabilized, the big dividends could be a great payment for patient investors, says John Snyder, portfolio manager for...
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