Dividend Champions: Smackdown VII

In previous installments of the Smackdown series, I screened the Dividend Champions list of companies that have paid higher dividends for at least 25 straight years (which can be found here) using fundamental factors that are important to dividend-oriented investors, such as yield, dividend growth rate, and price.This time, I decided to focus on something that may be of more importance to young investors, the availability of a No-Fee, company-sponsored DRIP, or Dividend Reinvestment Plan. These plans typically include not only the ability to reinvest dividends, but also the option to invest additional cash, often as little as $25 or $50. This can be a big boost for young investors trying to build a diversified portfolio of high-quality dividend-paying stocks, but the presence of fees can inhibit this approach considerably, so such well known companies as Coca-Cola (KO) and Kimberly-Clark (KMB) won't make it through the initial screen. You can check whether a company has a DRIP, using the “Search for DRIP” option at this site: directinvesting.com.... Read more