Seeking Alpha Seeking Alpha Portfolio App for iPad  The global
markets have been reeling under the pressure from heavy stock
selling in recent weeks. In that environment, traders have had
plenty of options to earn money while shorting stocks in a down
market. For some time, it seems that many short sellers have
been especially pessimistic about the prospects of several
dividend-paying companies. Otherwise, in some cases, hedge funds
may have been hedging some of their long exposures in the sector
or engaging in merger arbitrage. The list of heavily shorted
dividend-paying stocks includes the likes of Supervalu (SVU),
Meredith Corporation (MDP), Kinder Morgan (KMI), Pitney Bowes
(PBI), and Safeway (SWY).  (click to enlarge)  (click to
enlarge)  Some of these companies boast very high yields, such
as Pitney Bowes, with a 10.9% yield, and Supervalu, yielding
7.5% at current prices. Surprisingly, in spite of a negative
sentiment, some of the noted short plays have registered large
dividend hikes, such as Safeway,