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8 Top Dividend Stocks I Like In This Capital Market Environment

While I made my daily research, there came a lot of interesting stocks on my screen.
Most of them offer a great opportunity but they still have a risk.

I personally look for stocks with a 10+ billion market cap as well as a P/E ratio of less than 20 combined with a 5+ percent mid-term earnings growth.

Below are eight stocks with solid fundamentals and a good long-term dividend growth history that could be helpful for your own asset allocation. My favorite industries are telecoms and insurer.

8 top long-term dividend grower....

5 Long-Term Dividend Grower With Good Fundamentals

I'm sitting here and looking at the several stock screeners, just wondering how stocks hit new life-time-highs, reaching valuations far above 20 on the estimated earnings. Wooow...good news for investors who bought these stocks earlier....bad news for those who plan to buy shares in the future.

How fast must your company grow in the future to defend this valuation level? I believe it should grow by more than 10 percent yearly.

The aim of each investor should be to evaluate risks and to select a price premium in the final investment decision. I’m my favorite asset class, long-term dividend growth stocks, there are not many choices with good fundamentals at the moment, only a dozen companies with a proven track record.

Today I like to present five companies with double-digit expected earnings growth, a debt-to-equity ratio of less than 0.5 and a forward P/E of less than 20. Each stock has raised dividends by more than 25 consecutive years.

5 long-term dividend growers with good fundamentals...

6 Top Long-Term Dividend Growth Stocks With A 20% Return On Investment

The markets hit new highs and valuations grow steadily. I notice that the fight for real and high quality assets is very hard. Today, investors pay 30 times for a solid and slow growing free cash flow. That's crazy in my view because you cannot make a good return with such a high price; it's a 3.3 percent initial yield.

Bonds yielding much lower at a yield of 2.5 for US Bonds to 1.5 percent or less for the German Government Paper. That's a damn low ratio.

But investors like you and me need a good yield to head off market fluctuations and to compensate inflation pressure, but most of the high-quality dividend growth stocks yielding below 3 percent.

My goal for today is to present you those stocks that pay more than the expected inflation rate and have a return on investment ratio above 20 percent. In addition, they should grow at a pace of 5 percent or more over the next five years. 

Below are those 6 results that have matched the above mentioned criteria and hiked dividends for 10 years or more. The results are very limited but can give you a good idea about the current market situation.

6 top long-term dividend growth stocks...

Warren Buffett's Latest Dividend Stock Buys/Sells And His Portfolio - Q1/2014

Warren Buffett is one of the most observed investment gurus on the stock market. Each transaction he made will be discussed by thousands of analysts and investors. Today, I would like to highlight the latest dividend stock buys from Warren Buffett.

During the latest fiscal quarter, Warren added six stocks and purchased two new stock positions. The biggest influence to his portfolio had Wal-Mart and Verizon with a 62 and 50 percentage points.

On the short side, he reduced four stocks. Phillips 66 and General Motors were the most influential stocks.

Warren Buffett's latest dividend stock buys...

Find The Good Stocks That Pay And Grow Money For You Over Decades!

Every trade causes costs. I'm talking about taxes and transaction costs. You can adjust your portfolio risk with your trades but if you are right or wrong, it's in my view often hard to say. I have sold stocks many times and often they doubled or tenfold after I have decided to sell them; a bad choice from me. Recently, I wanted to sell 25 percent of my Mondelez stake because they got so big after the spin-off from Kraft Foods. The order was not executed because my limit was too high on the trading day, at USD 34. But because of my 70 percent gain, I needed to pay high taxes on my trade, a number that causes a potential 10 percent loss for the whole stake.

I believe that it makes more sense to buy high-quality stocks at fair prices and keep them for 20 years or more. Over this period of time, the stock should have paid your investment amount nearly completely back. No dream, just reality. Some stocks can pay you in 10 years, others need 50 years. The point is to find the good stocks that pay you.

Below are six stocks with over 10 years of consecutive dividend growth and solid debt and growth predictions.