Dividends Done?

First, on a personal note, sorry I've been gone this week.  I came into work Wednesday morning only to realize I was so sick I could barely stand.  My staff told me I was "green" and it was time to go to the doctor.  Two days of no food and  sleep (and lots of drugs!) and I'm doing better.

Back to the blog: I bet that's how you are feeling, dividends are done.  Are there going to be any dividend paying stocks left at all by the end of  2009? Citigroup not only put the dilution screws to  common and preferred shareholders, but they suspended their dividend indefinitely.  That jeopardizes  their standing with institutions, which as you know, is the lifeblood of any stock these days.  Lots of 401K's and pension funds, plenty of other choices to buy besides a near-dead bank.

What are people telling me? Go for safety, go for defensive, and that is not the financials.  Look to energy, consumer staples, and technology plays.  It's funny to think of the latter when we were running from tech in 2000.  Now, the Nasdaq is only 5% lower for February, compared with a 10% drop for the Dow in the same month.

Within the Dow, the one name that posted a gain in February?  WalMart.  So, think about the good ole' days, and what Americans need to "survive" the next year, and there's your investments.  We'll need clothes from places like the Gap or Target.  We'll need Kraft foods cause nothing spells recession like Mac N Cheese, and we'll need to keep the lights on, so look to utilities.

I read all those boring reports and talk to those sometimes-not-that-interesting financial types so you don't have to.

Have a good weekend!

CC