32 Of 60 S&P 500 Dogs Have Cash Margins To Cover Dividends

“Dogs of the Dow” is a popular investment strategy. There are thousands other or similar strategies out there trying to beat the market by finding undervalued stocks without deep research.

The approach is simple and easy. On seeking alpha, there are many writers creating great screens with attractive stocks. 

Attached you will find a list of dogs from the S&P500. A dog by definition from the article is a stock from the S&P 500 with a dividend yield higher than their peers and lower than their historical average.

High yields also under pressure of dividend cuts. In order to eliminate those risks, the author created the safety margin rule. This ratio shows how much of the dividend yield is covered by the free cash flow yield. A ratio below 100% tells us that the dividend is paid with free cash, generated by operating activities.

Check out the dogs with high safety margins here...

7 Dividend Aristocrats With 20% Return On Investment

Many conservative dividend investors like to review the Dividend Aristocrats and Dividend Kings lists for investment ideas, but most of these dividend stocks don't offer high yields. 

High-yield stocks usually come with high risks. However, the 7 companies identified from the Dividend Aristocrats list here have all a return on investment of at least 20%. 

Finding such a combination of capital efficiency and capital appreciation is rare, but each of these companies has been successful and offers a dividend yield ranging from 1.22% to 3.25%. 

Let's take a look at these high dividend stocks that have a return on invetment of at least 20%.

These are the results...

53 Stocks With Over 1000% Return In 7 Years

We are talking a lot about capital return secured by dividends. Growth is an essential element to create wealth. 

Dividends give you a regual income and hedge you against capital losses. They are no wealth driver in general.

Today I would like to present a couple of stocks that tenfold over the past six years. Each of the companies generated a stock return over 1000% since 2009.

There are not many companies on the list, only 53. Most of them are high growth names like Starbucks, Netflix, Priceline or Expedia. 

The financial crisis also gave investors the great opportunity to buy high-quality businesses for a really cheap price. Especially high leveraged stocks with big debt burden or companies with cyclic products were traded at deep discounts.

Here is a table of percentage moves from the March 9, 2009 stock market bottom for 54 stocks with returns over 1,000% listed in alphabetical order.

These are the results...

10 Highest Dividend Stocks on the S&P 500

The average stock on the S&P 500 index pays a dividend yield of 2.41%, but some are paying much more. Here's a chart of the 10 highest-paying dividend stocks on the S&P 500, and which ones might be the best choices to buy and hold for the long term.

Before moving on, it's important to mention that a high dividend doesn't necessarily translate into a good stock to invest in.

For example, Frontier Communications (NASDAQ: FTR), the highest-paying company in the S&P 500, has struggled to turn a profit for several years now. In my opinion, it's at serious risk of a dividend cut in the near future.

With that in mind, there are a few stocks on this list worth buying. Here are my three favorites in no particular order.

These are the results...

These 9 Dividend Aristocrats Look Most Attractive Now

Investors have enjoyed many years of cheering for dividend hikes. Now there is some belief that after a seven and a half year bull market run that many companies will have a hard time raising their dividends with as much vigor (or at all) in the years ahead.

Roughly half of all total returns through time come from dividends, so investors who want a solid dividend strategy ahead are much more likely to prefer those companies that have a history of raising their dividends year after year — and that can keep raising dividends ahead.

Attached you will find 9 of the cheapest Dividend Aristocrats by forward P/E. Each of the stocks pays a dividend yield of 2% to 4.73%.

These are the cheapest Dividend Aristocrats now...