Ring Up These Dividends

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 retail stores and restaurants to their portfolios. It seems counter-intuitive to add consumer-facing stocks whose storefronts are found in malls and stripmalls. Macro, qualitative arguments about an aging, more frugal U.S. population and the need for consumer deleveraging do not bode well for these industries. Regardless, do not throw the baby out with the bathwater. Even if you believe these macro trends are a destiny of industry headwinds, quantitative screens allow investors to find good stocks in bad industries. 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... Read more