Investors looking for income usually go for dividends instead on betting on stocks that offer capital gains for wealth creation.
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...
10 Companies With The Biggest Share Buybacks
Attached you will find a list of the stocks with the biggest share buybacks of the recent quarter. Apple is still the king of buybacks, also due to its large cash flow and big size.
The tech company bought 6 billion in own shares. Number two is United Technologies.
The military stock purchased 5.1 billion in own shares back. You can also see the amount of dividends paid in the list. It's also good to see that shareholders received cash dividends.
Here are the biggest share buyback stocks of the past quarter....
The tech company bought 6 billion in own shares. Number two is United Technologies.
The military stock purchased 5.1 billion in own shares back. You can also see the amount of dividends paid in the list. It's also good to see that shareholders received cash dividends.
Here are the biggest share buyback stocks of the past quarter....
The Next 20 Dividend Kings: Stocks With 44 Years Of Consecutive Dividend Growth And More To Come
First, though, a reminder of why you should consider dividends for your portfolio. For starters, they generate income, which is obviously welcome in retirement, but it can also be welcome when you're younger, as dividend dollars can be reinvested in additional shares of stock, building your nest egg.
It's really important to look how many cash you get back from your investment in the future. Recently I wrote about dividend growth and the benefit of long-term dividend growth investing. I summarized all Dividend Kings in a list.
Today I would show you those stocks that are close to Dividend Kings and should become a full hero in five years or so.
I call the selection the next 20. Each of the stocks has grown dividends over at least 44 years without an interruption.
Here are the results...
18 Cheap Dividend Growth Stocks To Consider Now
Instead of just buying a stock that’s cheap, or one that’s growing earnings fast, we look for stocks that appear decently priced with respect to year-over-year growth.
For example, a company growing 15% annually with a price-to-earnings (P/E) ratio of 15 or less would be considered cheap by growth at reasonable price standards.
Attached you will find a compilation of dividend growth stocks that which I have screened by growth at reasonable price standards.
I only screened stocks with a 10 year plus dividend growth at 10% earnings growth and less than 15 P/E multiple.
In order to avoid debt overloaded stocks, I decided to select only those stocks with a debt to equity under 1.
18 stocks remain. Attached you will find the results compiled in a list with important fundamentals.
Here are the best yielding results in detail...
I only screened stocks with a 10 year plus dividend growth at 10% earnings growth and less than 15 P/E multiple.
In order to avoid debt overloaded stocks, I decided to select only those stocks with a debt to equity under 1.
18 stocks remain. Attached you will find the results compiled in a list with important fundamentals.
Here are the best yielding results in detail...
The Benefit Of Dividend Growth And Which 17 Stocks Climped To The Top Of The Dividend Champions List
When the market is in a slump, healthy and growing companies will usually keep paying their dividends, offering some relief in challenging times. And here's something underappreciated: Dividend payers actually tend to perform really well, too.
Dividend-paying stocks averaged an annual gain of 9.3% from 1972 through 2014, while non-dividend payers averaged just 2.6%. Want more? According to Fidelity data, from 1993 through 2014, dividends accounted for about 40% of the 10.3% average annual return of the S&P 500.
Attached I've compiled those dividend growers with the longest dividend growth history. Only a couple of stocks managed to grow their dividends over decades without running them flat a year or even reduce them.
17 stocks joined the exclusive club of Dividend Kings. Those stocks managed to raise dividends over a half century without an interruption.
That's a great success if you keep in mind how many recessions come and go over that period of time.
Here is the latest overview of the Dividend Kings List...
Subscribe to:
Posts (Atom)

