Dividend-paying stocks also provide a cushion against equity market volatility. With Wall Street swinging between bull and bear markets, there are chances of high volatility in the near future.
While a series of mergers and acquisitions gave a boost to the technology market, the unknown impact of the interest rate hike, an aging bull market, the strengthening dollar, lower oil prices and global growth concerns like the Greece crisis and the slowdown in China, are testing investors’ patience.
This instability has compelled many to play safe and depend on dividend-paying stocks for steady returns. After all, such stocks have been the proven outperformers over the long term and are relatively safer bets.
Usually, an investor’s risk tolerance is a major factor that determines how the portfolio is organized. However, it is prudent to have a mix of both growth and dividend-yielding stocks.
Also, while some companies may offer a special dividend to distribute a windfall, it is advisable to choose a consistent performer with strong fundamentals.
Attached you will find a couple of stocks with such strong fundamentals. I restricted my research on long-term dividend growth stocks in order to keep the quality high.
These are my screening criteria in detail:
- Dividend Growth Over 10 Consecutive Years
- Positive Past Sales Growth
- Expected Mid-Term Earnings Growth Over 5%
- Debt To Equity Under 0.5
- Low Forward P/E Under 15
19 stocks fulfilled the above mentioned criteria of which four yields over 3 percent.
Here are the results...
|19 Dividend Achievers With Strong Fundamentals, |
Solid Growth And Cheap Price Ratios
(click to enlarge)