Low, Medium or High Yield: 16 Dividend Growth Stocks for Every Type of Investor

The Dividend Champions spreadsheet and PDF have been updated through 6/30/11 and are available here. N ote that all references to Champions mean companies that have paid higher dividends for at least 25 straight years; Contenders have streaks of 10-24 years; Challengers have streaks of 5-9 years. “CCC” refers to the universe of Champions, Contenders, and Challengers. Dividend Growth vs. Yield In a recent article by SA Contributor Low Sweat Investing, the author, who deservedly earned an Editor's Pick and garnered at least 242 comments, discussed the relatively friendly “feud” between “high-yield fans and dividend-growth lovers.” He went on to report some surprising findings that seem to favor the high-yield fans...up to a... more

3 Dividend Stocks Worth Buying in the Current Soft Patch

Since early February, the S&P 500 has been relatively range bound, which may concern investors looking for yield and price appreciation in their portfolios. However, with the markets at the bottom of a recent range, many companies are trading relatively cheaply compared to their sector. The S&P 500 P/E ratio, on a weekly basis, is around 15. This is historically low, dating back to 2001. In fact, the average P/E ratio for 2011 is the lowest since 2001.As an investor, diversification and growth prospects are two key indicators I look for when constructing the optimal portfolio. In this commentary, I hope to highlight companies that pay out respectable dividends, have enticing growth opportunities and are trading relatively cheaply compared to their peers. To break down the S&P 500, I will... more

7 Electricity Stocks With Substantial Dividends

Utility stocks offer gorgeous dividends to investors. The average dividend yield on this industry is 4.5%. These stocks are one of the safest equities, and can return really good profits. Among the utility stocks, electric utilities are one of the best. The demand for electricity is increasing, which keeps the industry growing bigger and bigger, even in the roughest times of the global economy. Here, is a list of seven electric utility stocks offering substantial dividends (data from finviz/morningstar, and is current as of June 1 close): Dominion Resources (D): Dominion has been trying to convert three of its stations from using coal to biomass. As of the July 1st close, the Virginia-based company had a market capitalization of $28.21 billion, and a trailing... more

2011 Halftime Review: Dow Dog Portfolio Beating S&P, Plus Over Double the Yield

Many new income investors have been craving higher yielding investments in 2011, and for various reasons. The rates banks now offer for cash and CDs is nearly zero, as are the short-term U.S. Treasury rates. Further, many investors are avoiding the bond markets until we finally enter a higher rate environment, avoiding potential depreciation. Many income investors believe that buying some, several, or all of the Dogs of the Dow, or those Dow components with the highest yields, are a sensible way to identify good income producing equities that may also produce a capital gain. Additionally, they are all large, highly liquid investments. You may also find that theses equities make a reasonably diverse (though not completely), yet conservative portfolio, with a strong domestic,... more

22 Large Cap, High Yield Stocks With Strong Dividend Growth

In a recent article, we discussed how some stocks benefited from the market uptrend since March 2009 to raise their dividend payouts and provide steady returns to their investors. Many of these high growth stocks have also increased their dividend yields in the last 3 years and now they are more attractive alternatives for defensive investors. As we are concerned about the upcoming inflationary environment, we believe investors should-- in near future-- seek some protection and pick defensive stocks with high dividend yields. Below, we compiled another list of 22 large-cap US stocks with high dividend yields and a high dividend growth in the last 3 years. The market data are sourced from Fidelity. All companies in this list didn’t cut their dividends in any single year since... more

4 Future Dividend Achievers Boosting Distributions

The dividend achievers index is comprised of companies based in the US, which have increased their annual dividends for ten or more consecutive years. I typically look for companies which have raised distributions for at least ten years in a row, before considering a stock for potential addition to my portfolio. My reasoning is that only a company which has a strong business model characterized by stable and growing earnings can afford to consistently increase dividends every year for one decade. However, I still try to keep ahead by getting acquainted with the companies which might be eligible for inclusion in the list a few years from now.There were four companies which have raised dividends for over five years in a row, which also announced that their Boards have approved dividend... more

100 Dividend Champions: No New Names in June and Just 7 Payout Increases

During the past month, I have focused on updating the listings for dividend increases and other announcements. Following is a discussion of my latest efforts. Quiet Time During June, there were no new Champions and the number of dividend increases was fairly small, with just seven CCC companies boosting their payouts. In fact, one Champion was deleted when Wesco Financial reported that its shareholders had agreed to the company's acquisition by Berkshire Hathaway (BRK-A) on June 24. The month saw one company graduate from Challenger to Contender status when FedEx Corp. (FDX) declared its 10th straight year of higher dividends. The ranks of CCC companies remained at 449 with the 5th year of higher dividends by mining company Randgold Resources Ltd. (GOLD). The slowdown in... more

8 Dividend Stocks With Strong Cash Coverage Reaching New Highs

If you’re considering dividend stocks as a source of income, remember that dividends are not a guarantee of future payments. To be sure that your dividend will stick around, checking the company’s cash flows can give an idea of how easily they can continue paying income to shareholders. We screened today’s stocks reaching new 52-week highs for those paying substantial dividends. We then analyzed this list to find those with strong operating and levered free cash flows relative to their dividend payment. Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research. Your browser does not support iframes. We also created a price-weighted index of the... more

5 Undervalued Dividend Stocks With Strong Growth and Double Digit Covered Calls

We're half way through 2011, with the Dow up 7.23%, and the S&P (SPY) up 5.01% so far. Not bad, especially when you compare it to the first half of 2010, in which the Dow fell -6.3%, and the S&P was down -7.9%. Of course, the second half of 2011 most likely won't have the benefit of a massive QE2 $ injection, like 2010 had. So, what do you do to lock in some gains on some undervalued dividend paying stocks? Selling covered calls is one proven way to more than double your dividends, and also lower your downside risk. This week, we found 5 Dow dividend stocks with low Price/Earnings Growth ratios, (PEG), and double-digit covered call option yields. Although they don't qualify for our High Dividend Stocks By Sectors Table, a majority of these firms' dividend yields are above the current... more

Ultra Low Beta Stocks With Yields Over 4%

In the current market environment, it is important for income investors to choose their dividend stocks wisely. As volatility increases, investors may want to add some low beta stocks to their holdings to help dampen portfolio volatility. In general, companies with low betas will tend to be less volatile than the general market. We did a screen last week for companies with yields greater than 4% and betas less than 1.0. With the screen below, we took it one step further and searched for ultra low... more