5 Dividend Paying Stocks With Small Drawdowns
Let's face it, investors like dividends and dislike drawdowns. The problem for investors is finding companies that pay dividends and preserve capital. These five juicy dividend paying stocks should preserve your capital.
AT&T
Let's start with AT&T (T). AT&T is a large market capitalization company with solid sales growth over the past five years (15 percent) for such a mature company. Investors receive a dividend yield of 5.7 percent. While earnings the past five years declined at an annual pace of 18 percent; a portion of the decline in earnings is attributed to capital expenditure, upgrading the network and thus supporting long-term viability as a going-concern.
Besides all of the numbers the company is a major player in mobile wireless and that's not going to change anytime soon. AT&T has been around for a long time, going back to the "Bell" days.
Kraft
Next on our list is Kraft (KFT). The dividend yield is 3.1 percent. The beta is 0.54. Kraft makes packaged foods. Sales have increased at a 10 percent annual pace the past five years. Earnings are expected to be 11 percent higher next year after growing 38.7 percent this year.
Coca-Cola
Coca-Cola (KO) is another firm that is worth owning for the low draw down and juicy dividend. Let's look at the facts. Coke is "the" player in the soft drinks business. The contracts they have with other companies, namely fast food restaurants such as McDonald's (MCD) and Wendy's (WEN) are long-term contracts and these companies aren't about to ditch Coca-Cola for Pepsi.
Sales growth the past five years was 14 percent annually and earnings 11.3 percent. The dividend yield is 2.78 percent and their beta is 0.54.... Read more