Railroad, Shipping Dividends Full Speed Ahead

In light of low bond yields and the threat of interest rate risk, investing in dividends companies is attractive because of higher present yields and the opportunity for dividend growth. Income investors searching for growing dividends could benefit by adding railroad and shipping companies to their portfolios. The following dividend paying stocks were screened for their long term performance. Each of the following companies pays a dividend in excess of the 10-year Treasury yield and had over a 5% average annual increase in dividend payments over the past 10 years. Thus, each of these dividend stocks pays more than Treasuries and has a long-term trend of dividend growth, which is better than the static interest payments on fixed-rate Treasuries. Price multiples, dividend histories, and return of equity hisoties are provided below: CSX Corp. (CSX) recently traded at $22.94 per share. At this price level, the stock has a 2.0% dividend... Read more