7 Stocks in the Dividend Sweet Spot

Becoming a solid dividend stock doesn't happen automatically. Companies have to commit to adopting the mind-set of paying a consistent and growing dividend before they ever see it come to fruition. But with all sorts of corporate excess running rampant, investors now recognize that the way of thinking about corporate capital that comes from paying a dividend also helps reinforce the responsibility that management teams have in safeguarding shareholder assets. Too much cash on their handsYesterday's news of Microsoft buying Skype is only the latest example of the ongoing battle between the paradigms of dividend income versus internal growth. Microsoft argues that even a lofty $8.5 billion price tag for Skype isn't too much, given the twin goals of incorporating the company into its suite of Internet-based products as well as keeping it out of the hands of competitors. But skeptical investors like the managers of the high-performing Yacktman Fund argue that the cash-rich company is essentially squandering hard-earned money -- money that could instead go to shareholders.... Read more