5 Of The Safest Dividend Paying Corporates In America

Everybody from the dividend growth community loves dividends and growing dividends. But investing into stocks is also risky and you could lose some money if your company is on the wrong growth path.

As a result, your extraordinary strong dividend grower will cut its dividends or hold them for a longer time. In order to avoid the real big mistakes, you should look at several financial indicators of the company. The amount of debt is a major issue to evaluate the stability of future dividends.

Today I would like to show you five of the top dividend paying stocks that have in my view a high possibility to keep dividends alive or to hike dividends in the future.

I screened the market by companies with a high percentage of cash and current assets in relative to their short-term liabilities. I also looked at high operating margins above the sector average. This shows the ability to hike prices and demonstrate market strength.

Below is a detailed snap shot of my favorite results.

16 Cheap And High-Yielding Stocks From The S&P 500

S&P 500 stocks with low earnings multiples and high dividends originally published at long-term-investments.blogspot.com. I remember times when the popular S&P 500 index had more than 15 constituents of High-Yields. Today we only got seven!

Yes, market getting more and more expensive. The S&P 500 is up 22.85 percent this year and marked All-Time-Highs. In times when P/E’s of 20+ are the new valuation standard, it’s more important to keep an eye on cheaply priced stocks.

That’s the main reason why I would like to produce a screen from the mainstream index S&P 500 by the cheapest and highest yielding stocks measured with a forward P/E of less than 15 and a dividend yield over 4 percent.

Only sixteen corporate stocks fulfilled these criteria of which five have a buy or better rating. Utilities are the dominating investment category.

Ex-Dividend Stocks: Best Dividend Paying Shares On September 26, 2013

The best yielding and biggest ex-dividend stocks researched by ”long-term-investments.blogspot.com”. Dividend Investors should have a quiet overview of stocks with upcoming ex dividend dates.

The ex dividend date is the final date on which the new stock buyer couldn’t receive the next dividend. If you like to receive the dividend, you need to buy the stock before the ex dividend date. I made a little screen of the best yielding stocks with a higher capitalization that have their ex date on the next trading day.

In total, 155 stocks go ex dividend - of which 86 yield more than 3 percent. Here is a full list of all stocks with ex-dividend date within the current week.

Here is the sheet of the best yielding, higher capitalized ex-dividend stocks:

Company	Ticker	Mcap	P/E	P/B	P/S	Yield
PG&E Corp.	PCG	18.65B	20.09	1.34	1.22	4.31%
TransCanada Corp.	TRP	31.26B	21.68	2.05	3.80	4.03%
Avalonbay Communities Inc.	AVB	16.74B	82.01	1.96	13.50	3.30%
The Dow Chemical Company	DOW	46.39B	18.89	2.41	0.82	3.27%
Edison International	EIX	15.32B	11.55	1.64	1.23	2.87%
Fifth Third Bancorp	FITB	15.48B	9.39	1.17	3.85	2.66%
U.S. Bancorp	USB	68.01B	12.55	1.95	5.41	2.49%
Host Hotels & Resorts Inc.	HST	13.25B	94.32	1.85	2.34	2.46%
Boston Properties Inc.	BXP	16.29B	27.14	3.00	8.31	2.43%
Deere & Company	DE	32.52B	9.67	3.79	0.85	2.42%
Agrium Inc.	AGU	12.86B	9.47	1.76	0.78	2.32%
Xerox Corp.	XRX	12.69B	11.09	1.08	0.58	2.23%
Illinois Tool Works Inc.	ITW	35.07B	14.83	3.43	2.07	2.15%
St. Jude Medical Inc.	STJ	15.18B	25.22	3.95	2.79	1.87%
Mondelez International, Inc.	MDLZ	57.31B	29.96	1.82	1.63	1.75%
Western Digital Corp.	WDC	15.39B	16.58	1.95	1.00	1.55%
Stryker Corp.	SYK	26.77B	23.77	3.11	3.05	1.50%
Humana Inc.	HUM	15.17B	10.21	1.62	0.38	1.13%
Agilent Technologies Inc.	A	17.49B	19.25	3.65	2.56	0.93%
Morgan Stanley	MS	52.02B	38.96	0.84	1.52	0.73%

First Electric Utility In My Dividend Yield Passive Income Portfolio: IdaCorp

I hit the button for my first eclectic utility stock buy. It was the $2.4 billion corporate IdaCorp that I purchased at $47.94. The total acquisition amount was $963. It’s the lowest weighted stock holding in my Dividend Yield Passive Income Portfolio.

Ida pays 3.17% dividends and hikes its rates recently by 13.2 percent. The new stake will increase my current passive dividend income by $30 bucks or so.

With a current P/E of 12.78 and forward P/E of 14.03, the utility is not expensive in my view. For sure, the market cap is small but IDA is one of the electric utilities with the lowest debt ration within its industry. These is a modest potential to grow the balance sheet and boost sales.

Latest Portfolio Transactions (Click to enlarge)

Dividend Yield Passive Income Portfolio I (Click to enlarge)

Dividend Yield Passive Income Portfolio II (Click to enlarge)

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For readers who are new to the matter and my dividend growth philosophy: I funded a virtual portfolio with 100k on October 04, 2012 with the aim to build a passive income stream that doubles each five to ten years. I plan to purchase each week one stock holding until the money is fully invested. The total number of constituents is expected at 50 – 70 companies and the dividend income should be at least at $3,000 per year.

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Over the full year, the expected dividend income amounts to $2,441.92. With around $30,000 in deposited cash, it’s still possible to reach the $3,000 by the end of this year.

The portfolio holdings are up since the date of funding by 8.91 percent. Because of the slow purchase process and high cash amounts over the recent year, the full portfolio performance is only up 7.38 percent.

Dividends and Earnings of IdaCorp. 

As of now, the strategy produced an underperformance compared to the overall market but the current situation is not sustainable on the market. Bernanke and the Fed manupulates the stock market. More high-fly momentum stocks like Tesla and Facebook lead the market. Dividend paying stocks are not hot or popular right now. They are boring for many investors. But not for me and I hope you think the same about the philosophy of dividend growth investing.

The goal of this portfolio is to show how to build up a passive income stream for normal investors with small investment budgets. To buy a stock each week for $1,000 bucks is possible for many people with a solid job and a high savings rate.

Portfolio Performance (Click to enlarge)

Here is the income perspective of the portfolio

Sym	Name	P/E Ratio	Dividend Yield	Buy	# Shrs	Income	Value
TRI	Thomson Reuters C	26.75	3.69	28.90	50	$64.75	$1,747.00
LMT	Lockheed Martin C	14.62	3.53	92.72	20	$92.00	$2,560.00
INTC	Intel Corporation	12.92	3.76	21.27	50	$45.00	$1,188.45
MCD	McDonald's Corpor	17.93	3.15	87.33	15	$46.20	$1,453.50
WU	Western Union Com	11.89	2.65	11.95	100	$50.00	$1,864.00
PM	Philip Morris Int	17.59	3.8	85.42	20	$68.78	$1,809.40
JNJ	Johnson & Johnson	19.99	2.82	69.19	20	$50.80	$1,793.60
MO	Altria Group Inc	16.36	5.03	33.48	40	$72.00	$1,422.00
SYY	Sysco Corporation	19.66	3.38	31.65	40	$44.40	$1,302.80
DRI	Darden Restaurant	15.73	4.16	46.66	30	$61.50	$1,373.40
CA	CA Inc.	13.42	3.26	21.86	50	$50.00	$1,536.00
PG	Procter & Gamble	20.76	2.91	68.72	25	$58.20	$1,984.75
KRFT	Kraft Foods Group	17.67	3.70	44.41	40	$80.00	$2,161.20
MAT	Mattel Inc.	19.48	3.2	36.45	40	$55.60	$1,721.60
PEP	Pepsico Inc. Com	19.27	2.7	70.88	20	$44.20	$1,634.80
KMB	Kimberly-Clark Co	20.67	3.26	86.82	15	$47.55	$1,443.00
COP	ConocoPhillips Co	11.82	3.77	61.06	20	$52.80	$1,420.00
GIS	General Mills In	17.5	2.81	42.13	30	$41.10	$1,459.80
UL	Unilever PLC Comm	19.53	3.24	39.65	35	$47.01	$1,446.20
NSRGY	NESTLE SA REG SHR	19.28	3.12	68.69	30	$65.31	$2,095.50
GE	General Electric	18.11	3.11	23.39	65	$49.40	$1,560.65
ADP	Automatic Data Pr	25.88	2.33	61.65	25	$43.50	$1,860.75
K	Kellogg Company C	23.4	2.91	61.52	25	$44.50	$1,514.25
KO	Coca-Cola Company	20.7	2.79	38.83	40	$43.80	$1,576.00
RTN	Raytheon Company	13.94	2.6	57.04	20	$42.00	$1,580.00
RCI	Rogers Communicat	11.6	3.9	46.5	50	$84.00	$2,175.50
GPC	Genuine Parts Com	18.41	2.58	77.06	20	$42.12	$1,626.20
TSCDY	TESCO PLC SPONS A	242	3.79	17.08	110	$75.68	$1,987.70
APD	Air Products and	23.48	2.45	85.71	15	$40.50	$1,628.55
GSK	GlaxoSmithKline P	19.13	4.72	52.16	30	$71.13	$1,515.90
WMT	Wal-Mart Stores	14.84	2.37	79.25	20	$36.16	$1,516.60
BTI	British American	16.59	3.85	111.13	23	$96.14	$2,474.11
CHL	China Mobile Limi	11.24	3.9	55.32	25	$55.95	$1,420.00
MMM	3M Company Common	19.03	2.05	110.27	15	$37.43	$1,800.15
TUP	Tupperware Brands	18.66	2.55	80.98	15	$33.30	$1,287.75
IBM	International Bus	13.73	1.86	197.09	16	$57.60	$3,040.32
HAS	Hasbro Inc.	19.94	3.08	44.09	30	$45.60	$1,463.70
T	AT&T Inc.	26.65	5.14	34.47	30	$53.70	$1,029.45
WAG	Walgreen Co. Comm	24.49	2.04	44.25	30	$34.20	$1,665.60
AFL	AFLAC Incorporate	8.64	2.25	59.39	20	$28.00	$1,246.40
TGT	Target Corporatio	15.76	2.31	68.69	32	$48.32	$2,065.60
CSCO	Cisco Systems In	13.23	2.52	25.12	90	$55.80	$2,205.90
DE	Deere & Company C	9.77	2.28	84.11	15	$29.10	$1,257.30
RGR	Sturm Ruger & Co	12.87	3.17	51.65	20	$38.52	$1,239.80
LO	Lorillard Inc Co	14.09	4.79	42.3	30	$65.00	$1,353.30
UNP	Union Pacific Cor	18.32	1.78	154.75	8	$22.88	$1,276.40
IDA	IDACORP Inc. Com	12.89	3.15	47.94	20	$30.40	$958.80
						$2,441.92	$77,743.68
						Average Yield	3.14%
						Yield On Cost	3.43%