Where to Hunt for Big Yields

Focus: DIVIDEND

Roger Conrad Image Roger Conrad Founder and Chief Editor, Capitalist Times

At this point, the answer is "everywhere." The real trick is to be thoughtful and selective when you're looking for these solid cash cows, says Roger Conrad of Personal Finance.

Gregg Early: We're here with Roger Conrad, editor of Personal Finance and Utility Forecaster. Roger, where should investors look for yield in 2013? Are there specific sectors? There's been so much demand for dividend-driven stocks that I'm not quite sure that there's anything left out there.

Roger Conrad: Well, I think that there are a couple of macro factors that we need to keep in mind. One is the fact that there is some austerity coming in the United States. We've seen some tax increases-not as much as people feared at one point, but nonetheless those are going into effect, particularly the Social Security tax.

Then we also have later on, probably some spending cuts that will be of about the same magnitude, I would expect. When you add that up, I think the estimate is about 1.9% of GDP, which is actually more austerity than some of the other countries, like Britain, had been doing.

We are seeing some good signs in the US economy with growth, particularly on the employment side, and of course China had a pretty good number. So there are some offsets, and it's possible that with all the cash that corporations have on the books right now that we'll see the economy pick up even with this austerity.

I think people need to really be concerned about individual companies.