1 Dividend to Buy and 1 Dividend to Sell

Before you go, we thought you'd like these...
Before you go close icon

In today's edition of "1 Dividend to Buy, 1 Dividend to Sell," Austin recommends buying shares of The Buckle (NYS: BKE) and selling shares of Sprint Nextel (NYS: S) . 

The Buckle is a very disciplined and well managed clothing retailer that has made a habit of paying out a large annual special dividend. This dividend, coupled with the company's regular payments, means the actual yield can top 7%. That's great for a company with large insider ownership, impressive inventory management, and a reputation for hiring within. Overall, The Buckle seems like the exception to the rule in an otherwise weak segment of retail right now. 

On the flip side, Austin recommends selling Sprint. Although the company has had an impressive run over the past few months, there isn't a lot to like about it over the long run. There are few catalysts on the horizon, and Sprint remains very weak compared with the telecom duopoly of Verizon (NYS: VZ) and AT&T (NYS: T) . Simply stated, Sprint doesn't have the dry powder to effectively compete with either of these companies.

If you're interested in some of these dividends on your quest for high-yielding stocks, The Motley Fool has compiled a special free report outlining our nine top dependable dividend-paying stocks. It's called "Secure Your Future With 9 Rock-Solid Dividend Stocks." You can access your complimentary copy today at no cost! Just click here to discover the winners we've picked.

Austin Smith has no positions in the stocks mentioned above. The Motley Fool owns shares of Aeropostale and The Buckle. Motley Fool newsletter services recommend The Buckle. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners