Five Dividend-Payers That Could Turn $10,000 Into $5 Million In 65 Years

You may have read some articles about making million by investing into stocks. This blog don't promise you a quick return. I will also not show you how you make a thousand dollar trade.

The core thoughts in this blog are value creation by long-term investing. If you put money for a long period of time into a stock, you will see that your investment is growing.

Consider this nifty fact to keep you focused on the long term: $10,000 invested at birth and compounded 10% annually turns into more than $5 million by age 65.

As you can see, a $10,000 investment can easily turn into a fortune if it is left to compound at a reasonable rate of return over the long term. For these calculations, we assumed a 10% average annual rate of return over the long term, which is less than the amount actually achieved by the market as a whole since 1926. 

Below are five picks that could help you to boost your portfolio return. To qualify for this list, the company must have a long history of dividend increases. We also took into account the sustainability of those dividends and the amount of yield it was providing.

We kept total return in mind, looking for companies with excellent earnings and dividend growth rates, as well as sustainable business models. Since investment amounts are likely to be small to start, we limited our selections to companies that do not charge fees for investing through the plan. We also sought to diversify the companies in terms of industry. The companies that met these conditions are listed below.

Here are some ideas...

20 Dividend Stocks With Yields Over 4% And A Low Risk Profile

Dividend yields greater than 5% look like an easy way to grab more current income on the surface, but dividend income is just part of the total return equation.

If a stock with a 6% dividend yield sees its price cut in half, an investor living off dividends in retirement would have been better off purchasing a lower yielding stock with less business risk and volatility, occasionally selling shares to meet his or her cash flow needs.

Remember, the market is quite efficient most of the time, so think first before chasing a high yield dividend stock that appears to be too good to be true. It often is.

With that said, we dug through our database of thousands of dividend stocks to search for companies offering a dividend yield greater than 4% with low stock price volatility, above average dividend safety and enough dividend growth to protect retirees’ purchasing power.

These characteristics don’t guarantee that these stocks won’t decline in price, but it’s a good place to start the hunt for income ideas to research on a deeper level.

Attached you can find a few of those stocks with a dividend yield of more than 4% yearly and low beta and vola ratios.

These are the highest yielding results...

3 Different Yield Tables Of The Highest Yielding Dividend Aristocrats

The S&P 500 Dividend Aristocrats Index has greatly outperformed the broader S&P 500 Index over the past 10 years, and includes many quality companies that raise their payouts year after year. 

But S&P Dow Jones Indices has a High-Yield Dividend Aristocrats Index that can help you find even higher-yielding stocks. 

Most financial-media news is geared toward current events that can affect stock prices over the short term. But many investors are much more concerned with longer-term strategies for growth or income.

I'm a strong believer in long-term value creation though growth and job creation. Only a growing company with a healthy business that works over decades and has also a strategic plan has potential to create a solid return for us.

These are the 10 highest yielding Dividend Aristocrats...

These Stocks Are The Favorite Picks From The Best Asset Managers

Below is a list of stock picks from the best equity managers of the recent quarter. The list summarizes a few dividend growers like Oracle, Walgreen or Johnson & Johnson.

I hope you can find some values in the list and fresh ideas from the professional money management industry.

I bought recently PG, QCOM. Both pay solid dividends and become a little under pressure in the recent market correction.

Here are the top picks from the industries top managers....

34 Dividend Growth Stocks To Consider When Everthing Is Expensive On The Market

With the S&P 500 once again in negative territory for the year, companies of all sizes have seen their share prices decline.

When a stock that pays a strong dividend goes down, it has the happy effect of pushing its dividend yield even higher, which can create a nice buying opportunity for long-term investors who want to add income to their portfolio.

Attached I've compiled a list of great dividend growth stocks that might look attractive despite the market has reached a hot valuation level.

Each of the results have predicted earnings multiples of less than 15 on double-digit earnings growth rates, a debt-to-equity ratio under 1, and a Beta less than the overall market as well.

Exactly 34 companies match my criteria. Attached you can find the full results. The first table shows all Dividend Champs and Contenders. Those stocks have raised dividends over a period of more than 10 consecutive years. 

The second table shows the results from the Dividend Challengers List. Each of the results matched the above mentioned criteria and has grown dividends over 5 to 10 years.

Here are the tables: