How well will these 10%+ dividend payers weather the debt crisis?

My entire portfolio is high dividend stocks right now. I don't have the time to second guess the Russian Roulette being played by Republicans in congress who would rather destroy the worlds largest economy than pay more taxes, and as a result the market is simply too volatile for my usual style of swing trades to work.

Here is the breakdown of my current dividend only Portfolio

CMO (finance) - currently paying 14.5% 

NLY  (finance) - currently paying 14.87%

AGD - (Global Dividend Fund) - currently paying 10.17%

AOD - (Global Dividend Fund) - currently paying  11.32%

CPLP - (Supertankers) - currently paying 11.44% 

My income portfolio is fairly diversified, but did get hammered in the last week, so I was glad to see the recovery today. Look at this graph of the bounce back from the last weeks vicious drop.

NLY Quarterly Dividend paid 62c 13% p/a at current price

NLY Quarterly Dividend Paid 64c 14% yield p/a at current price

Annaly Capital (NLY) Declares $0.64 Quarterly Dividend; 14.3% Yield

Annaly Capital Management, Inc. (NYSE:NLY) declared the fourth quarter 2010 common stock cash dividend of $0.64 percommon share, $2.56 annualized.

The dividend is payable January 27, 2011 to common shareholders of record on December 28, 2010. The ex-dividend date is December 23, 2010.

Yield on the dividend is 14.3%.

NLY Dividend Paid 68c quarterly 15.48% yield at current price

Annaly Capital Management 3rd quarter dividend of $0.68 per share - 15% p/a

Annaly Capital Management 3rd quarter dividend of $0.68 per share - 15% p/a

NLY Dividend Paid 68c quarterly 15.8% p/a yeild at current price

Taking NLY profits at $17.50

Taking some NLY profits from 30% of my NLY position off the table at $17.50 on 6/16, with around $3 per share profit. I sold it because the candles were crossing into the 9-day EMA. However you can see from the chart my timing could have been a fraction better as it jumped to $18.10 before losing momemntum, with the candles staying about the EMA-9 for another 5 days.  But it's now trading below my sell price and will probably drop further based on the green moving EMA-9 just about to cross downwards over the red EMA-26.

Like AGNC, NLY is a mortgage REIT, and cycles based on the quarterly dividend, so a good rentry price would be $15 or under within the next 2 months.

Income Portfolio Analysis

The next few months are going to provide an excellent test of the Daily Income for Life trading and investing strategy.

After I dump my last remaining Active Trading (NOK, TNP) and underperforming income positions (AWP) tomorrow to stem further losses, I will only have income stocks remaining. I'm shorting one tech stock (HXL), but am not attached to the result. Catching it's correction might for a small gain might just make me feel better that I sold my HXL position too early back in April at 20% profit in a month rather than 60% gain in three months I could have made.

Left in the Income Portfolio
AGD
AOD
CPLP
FTR
AGNC
NLY

These stocks are all paying between 10% - 23% in dividends. The income stocks that were yeilding less than 10% were sold to realize capital gains from the last 14 month bull market.

Currently, only FTR does not have unrealised losses after the panic market correction and spiking volatility we saw in the last three weeks. However, because of the high yields,  if I hold these positions long enough they will all turn around eventually and continue to provide long term dividend reinvestment.
As the prices decline further before we reach a stable bottom, the yields relative to price actually will increase. Also, dividend reinvestment will purchase more shares. This should position the Income Porfolio to gain healthily if this correction rebounds. These stocks were all purchases with the long term investment and dividend reinvestment in mind. Gains that were taken were based on the recent bull market and technical analysis providing solid reasons to exit.

The real question is, what will happen after this correction? Commentary is all over the map right now. The only sure thing is that trust in the entire financial system will sink to yet another low after the two shocking down days in the last two weeks.