The 20 Highest Yielding Dividend Aristocrats
-
Font Size:
In today’s low interest rate environment, retirees are having a hard time finding tax efficient income opportunities, worthy of their money, which would help them enjoy their post-working years. A great idea for income seeking investors is investing in stocks that pay good yields and have consistent dividend payments.
With inflation averaging around 3% - 4% per year, your investment in dividend paying stocks would provide you with a source for income that keeps its purchasing power over time, which unlike fixed income securities can also provide you with capital gains. Unlike bond payments which are fixed, stock dividends could be raised and thus provide stockholders with a nice raise for owning the right companies.
A good starting point for income investors is the S&P Dividend Aristocrats list, which features companies that have increased their annual dividend payments every year for more than 25 consecutive years. I have selected the 20 highest yielding stocks in the index, along with their tickers, P/E ratios, dividend yields and dividend payout ratios.
The portfolio consisting of the 20 highest yielding stocks in the Dividend Aristocrats index currently yields 5.31% ( As of May 23, 2008). This is far better than most bonds and most stocks. This portfolio is just for illustrative purposes only, however. Its performance could be better or worse than the S&P 500 benchmark.
Full Disclosure: I own GCI, CINF, GE, KMB and CLX.
Get Seeking Alpha Free Stock Alerts by Email!
Get Free Stock Alerts by Email!
ETFs In Focus
-
Editor's Picks
-
Most Popular
- High Prices Cut Demand for Metals
- On Recent Financial Stories
- Yes, Virginia, There are High Dividend ETNs
- Interrelation of Asset Classes: A Few Market Themes
- Valuation Metrics Of Large vs. Small Website Acquisitions
- The Reign of Uncertainty in Financial Markets
- Full list of Editor's Picks »
- Wall Street Breakfast: Must-Know News »
- Apple's Problems - Bad to the Core? »
- Looming Financial Catastrophe: A Real Inconvenient Truth »
- Apple's Biggest Rumor: iPod or Jobs? »
- Solarfun's Huge Run: Time To Lock in Solar Profits »
- Sirius XM Cramer Wars Part II »
- What Did Buffett Buy: American Express or Wells Fargo? »
- Grab Your Shorts, the Tide Has Turned »
- Wall Street Breakfast: Must-Know News »
- Wall Street Breakfast: Must-Know News »
- Sirius XM Belt Tightening Begins »
-
Long Ideas
-
Short Ideas
-
Cramer's Picks
- Top 5 Stock Picks for September
- Obama Plays - Fast Money Recap (8/27/08)
- Diversified Portfolios - Cramer's Mad Money (8/27/08)
- Gustav Moves Overdone - Cramer's Stop Trading! (8/27/08)
- GrafTech is Too Cheap - Cramer's Stop Trading
- Borders: Earning Call Notables
- Mexico’s Guillermo Ortiz: The Anti-Greenspan
- Silvercorp: Canadian Mining Profits in China
- Amylin, Lilly: Another Case of a Panic Driven Sell-Off
- 3 Momentum Stocks with Room to Run
- Full list of Long Ideas »
- Short Thesis Still Intact at FirstFed
- Short Story: Lehman
- 'Buy, But Sell' - What Are Analysts Thinking?
- Nordson's Rally Is Over, For Now - Barron's
- What's So Special About RadioShack? - Barron's
- Salesforce.com: It's All About the Guidance
- Three Casino Stocks Rolling Over
- New Web Site For Short Sellers: You Gotta Love Capitalism
- Commodity Carnage: Where to Turn Next?
- Fannie and Freddie Shareholders Run for the Exit
- Full list of Short Ideas »
- Diversified Portfolios - Cramer's Mad Money (8/27/08)
- Gustav Moves Overdone - Cramer's Stop Trading! (8/27/08)
- GrafTech is Too Cheap - Cramer's Stop Trading
- The Rebound List - Cramer's Mad Money (8/26/08)
- The List - Cramer's Stop Trading! (8/26/08)
- Can't Turn My Back - Cramer's Lightning Round (8/26/08)
- The Pelosi Factor - Cramer's Mad Money (8/25/08)
- Buy Tech Weakness - Cramer's Lightning Round (8/25/08)
- Fannie & Freddie Too Difficult - Cramer's Stop Trading! (8/25/08)
- Attractive and Single - Cramer's Mad Money 8/22/08)
- Full list of Cramers Picks »
Trading Center
Hedge Fund Jobs
Job Seekers: Search jobs by category, get job alerts by email or live feed, apply online See full list of jobs »
Employers: See all recruitment options, get applications online or by email Post a job »



This article has 34 comments:
and that won't be the last of your list to cut severely in the very near future...
arter
There are plenty of good ones on it though(and some not on it).
It's not an opinion piece nor does it try to be. I'm not sure what the uproar is. There's plenty of worst crap to comment on.
Growth
Investor
It's really easy to criticise and to put words in one's mouth especially when you are anonymous.
I challenge you ( Stewie and MajorG) to publish any article using your real name on the internet or in a newspaper. Something constructive and brilliant.
By the way Stewie, try telling your clients that you are going to invest in bonds for the capital gains, and they will look at you as if you are coming from the woords.
Oh yeah MajorG, i didn't know that CPA's ONLY check tax returns? In addition to challenging you to write an article on Seeking Alpha I also challenge you in finding a third grader who will write any article on stock investing on his/her own.
I do realize that this list is not a comprehensive list. It wasn't intended to be. It's just a starting point.
Investing is not a black and white process. What has worked in the past might not work in the future. What might work for me, might not work for everybody else. But if you pick enough bits and pieces, then you can construct a pretty good picture and then make your own decision.
If you have read any of my previous articles, you'd have seen that I don't like purchasing stocks with DPR which is too much above 50%.
very
improved
BullFrog
undertow with "BarleyStern-nuts... you would recognize that tech analysis is not the be-all-end-all. right now, adn for the next couple weeks, GE is a *screaming buy* - especially below $30!! [[WTF?!?!]]
i went long at ~$32 and bought too much - (my bad cramer; i apologize) and i will be buying LOTS more RSN if i can extract some profits from other issues. what i hadn;t considered (that creamer does) is that the lower shelf of GE stock would fall again.
Growth
Investor
I know what I am talking about. Good luck in your investments. I hope that you are better at investing than reading or spelling.
PS. I check my disclosure.
Growth
Investor
Many people have written unkind and erroneous comments regarding this article. Ignore them. You are on the right track, looking at securities that are unpopular and have demonstrated quality by posting a long record of pro-shareholder behavior (rising dividends). The best bargains come at the moment of maximum pessimism - when the foolish mob screams that you are mistaken. KEY lowered their dividend, so we delete that name from the list; the ones that don't cut are great bargains and their stocks will recover. Your list is a good place for intelligent investors to start looking for value.
Black cat
Says the Black cat as it enters the slaughterhouse and is never seen again.
"However, longer-term passive bond investors ( people holding till maturity) do not really get much in capital gains." Duh, I think it's safe to say if you hold a bond to maturity you don't get any capital gain or loss. You are advising people on income producing securities and yet you have no concept of why the equities on your list are paying high dividends, nor do you have even a rudimentary understanding of the bond market.
Black cat, Value investing involves fishing out opportunities where the street has underestimated earnings and growth, not buying a beaten down company. The banks at the top of this list are all likely to cut their dividends and lose further share price. That's what makes this list an amateur production.
Nothing wrong with dividend.
Sorry. I did not know this site was for amateur investors.
d fellow
ng
Buying Altria KFT and Phillip Morris at these levels will provide great dividend income and staed long term appreciation. MULTIBillionaires Buffett and Peltz paid 33 for KFT last year.
Growth
Investor
It seems to me like you are still overanalysing what I have said and putting words in my mouth without fully understanding what I am talking about. I don't think I have mislead any investors in anything. I simply showed a list of stocks. What you are asking me to do, is put 1000 disclaimers covering 1000's of possible scenarios for a post that has less than 500 words. I think that at the end of the day, you need to have a little bit of common sense when interpreting information that you read.
Example - I never mentioned that I owned KEY or FITB. I also never specifically recommended buying any of the stocks in the list.
Yet I was asked how this worked out for me ( pretty well actually). I did give Stewie partial credit for finding out that TRADING bonds could give someone capital gains/losses. Yet he still didn't understand that I am referring to long-term investing, as opposed to short-term trading. etc..
In your rebuttal on capital gains on bonds, you mentioned ABS and MBS. I am not going however to falsely assume that you own them, simply because you mentioned them. Or should I?
How have those investments performed for you Stewie? I hope you haven't lost any money on them.
By the way Stewie, I am willing to reimburse you for the losses that you have suffered in the stocks in the list above from the profits that I earned from publishing this article. Please send me scanned copies with your actual trading transactions history in the abovementioned stocks from June 12, 2008. If they are also legally verified, I would be even happier. My e-mail is dividendgrowthinvestor at gmail dot com.
This is the last message that I am going to write on this particular message board. Unfortunately It is not cost effective for me to answer to every single confrontation. I realize that different people are going to have different opinions on everything. If you have 10 investors, you will definitely have more than 10 likely investment predictions. That's what makes the market tick on daily basis.
Good Luck to everyone!
D.S.
PS I always found ihttp://investopedia.com helpful in finding what different abreviations such as DPR ( Dividend Payout Ratio) mean.
"By the way Stewie, I am willing to reimburse you for the losses that you have suffered in the stocks in the list above from the profits that I earned from publishing this article. Please send me scanned copies with your actual trading transactions history in the abovementioned stocks from June 12, 2008. If they are also legally verified, I would be even happier. My e-mail is dividendgrowthinvestor at gmail dot com."
KMB