‘Dividend Aristocrats’


Microsoft Boosts Dividend by 22%

Microsoft unveiled a $40 billion share buyback plan and boosted its quarterly dividend by 22%, continuing the shareholder-friendly moves it has pushed in recent years.

Between 1972 and 2010, dividend paying stocks returned 8.6 percent. For those worried about market volatility in today’s economic environment, dividend stocks outperformed non-paying dividend stocks by 1.5 percent monthly.

Dividends are paid out in cash. This means that you can be more confident if your investment choice company is actually making cash. This is no simple feat, as many companies use accounting tricks to show a profit without actually having any cash in the bank.

The beauty of dividend stocks is their long term viability to return increasing dividend payouts year after year so that investors can take advantage of compounding returns over long periods of time.

Investing in rock solid, dependable core dividend paying companies will help you build your portfolio successfully while you sleep like a baby at night.

There are a special group of dividend stocks that Standard & Poor’s calls the “Dividend Aristocrats.” Not only do they pay out dividends but these companies have increased their dividend payouts every year for at least 25 years.

When a company has a record of increasing its dividend payout for 25-plus years, you can be assured of impressively compounding profits to grow your portfolio.

These 5 dividend companies are some of the greatest business enterprises around. They consistently earn above-average returns and are dedicated to returning cash to investors.

1      ExxonMobil (NYSE:XOM)  Dividend Yield 2.5 percent. 10 year annual dividend growth 9.5 percent.

2      Johnson & Johnson (NYSE:JNJ)  Dividend Yield 3.3 percent. 10 year annual dividend growth 11.3 percent.

3      Procter & Gamble (NYSE:PG)  Dividend Yield 3.1 percent. 10 year annual dividend growth 10.3 percent.

4      PepsiCo (NYSE:PEP)  Dividend Yield 3 percent. 10 year annual dividend growth 13.7 percent.

5      Wal-Mart (NYSE:WMT) Dividend Yield 2.3 percent. 10 year annual dividend growth 17.5 percent.

More dividend paying companies paying out a higher dividend yield. There are risks associated with higher dividend yields. Thus research these companies diligently and give them their appropriate factor and weight according to your asset allocation mix, profile risk and investment objectives.

AT&T (NYSE:T)  Annual dividend 5.3 percent is paid out with a little over 50 percent of its free cash flow.

New York Community Bancorp (NYSE:NYCB)  Dividend yield 6 percent. The bulk of its loans portfolio is in conservative low-rent apartment buildings in New York City whose value is based on real cash flow.

Greenhill & Co. (NYSE:GHL) Is a small cap investment bank. It provides companies with advisory advice on mergers and acquisitions and raising capital.

Owens & Minor (NYSE:OMI). Is a distributor of medical and surgical equipment. Since 2008 the company has had a 12 percent average return. Between 2000 and September 2012 the company has grown its earnings by 171 percent. Additionally they have raised their dividend since 1997 and have more than doubled their payout since 2006.

Read more >>

Stocks Investment Basics
Value Stocks Investments
Growth Stocks Investments
GARP Stocks Investments
Income Stocks Investments
Certificate of Deposit Tutorial
ETFs Tutorial
Mutual Funds Tutorial

Leave a Reply