Today
I've created a small list of stocks with high dividend yields (over five
percent) that are close to become a Dividend Champion in the upcoming years.
Those stocks have raised dividends over more than 25 years in a row.
Dividend Growth is King
When you read my blog for a longer time, you should
know that dividend growth is the key of a successful dividend investing.
In
a non-performing market, dividends contribute 100 percent to the total
performance or they can reduce their losses.
In
my view, dividends are good enough to generate a solid cash income when the
market suffers.
Over the past five years, this strategy failed because
of the high intention of the Federal Reserve to reduce the unemployment via
money printing. As a result, stock markets more than doubled in the most countries
of the world and equities got very expensive.
Dividend yields of the best dividend paying stocks
declined also by a few percentage points and investors often don't get a compensation
for inflation now.
What
we need are higher yielding stocks, but those are also more risky and sometimes
overloaded with debt.
I've attached a list of the highest yielding potential
dividend Champions. Only 13 companies with a consecutive dividend growth
history of 10 to 25 years have a current dividend yield above the 5 percent
ratio.