7 ways to identify
the high dividend blue chip stocks that will help you lessen the risk — and boost the returns — of your portfolio If you only buy the best high dividend blue chip stocks, you'll automatically stay out of almost all the market's worst stocks.
For our views on a very important decision regarding blue chip stocks, read How to Identify the Best
High Dividend Blue Chip Stocks.
Many investors who want yield without (too much) risk have successfully found it using
high dividend blue chip stocks.
Not exact matches
Our general take on equities remains that valuations are somewhat on the
high side, but with a dearth of investment alternatives,
dividend - paying
blue chips, such as those emphasized by the Dogs of the Dow strategy, remain an attractive option.
Let's assume you have a diversified portfolio yielding 3,5 %, some good old
blue chips grow their
dividend slowly, some newer companies keep raising their
dividend higher and
higher like their life depends on it, averaging
dividend increases of let's say 7 % per year.
Bookmark Monevator.com now to follow the rest of the series, where we'll look at what makes a good
dividend paying share, how
High Yield Portfolios (HYPs) of
blue chip
dividend payers have fared in the past, and explain how to construct your own portfolio.
They can invest in
blue chip
dividends to earn
higher yields, growing
dividends to realize the power of compound interest, or underappreciated
dividends hoping for a bit of both.
Speculative traders who focus on
high - risk,
high - reward stocks (such as penny stocks) are more heavily scrutinized than someone who invests in
blue - chip,
dividend paying companies that are held for the long term.
You can find the list of stocks based on different screens like - «The Bull Cartel», «Growth Stocks», «Loss to Profit Companies», «Undervalued growth stocks», «
highest dividend yield share», «
bluest of the
blue chips» etc..
«As an investment strategy, I'd suggest selling the
high - fee mutual funds in her RRSP and instead hold
blue - chip
dividend - paying stocks in that account, with all
dividends reinvested, much like her non-registered investment account,» says Trentos.
Be wary of any
blue chip stocks with unusually
high dividend yields: Investors should avoid judging a company based solely on its
dividend yield (the percentage you get when you divide a company's current yearly payment by its share price).
The yellow line tracks
dividend stocks in the next yield bracket, all the way up to the light
blue line, which follows the stocks with the
highest dividend yields.
«That's why we encourage a balanced portfolio that would incorporate
high - quality,
dividend - paying stocks, because
dividends are taxed at a lower tax rate, and also
blue - chip equity stocks provide a natural hedge to inflation pressures,» she said.
For the equity component of the portfolio the fund, FCISX focuses on stocks that maintain relatively
high dividends, which tend to be large - cap
blue - chip stocks.
At such prices, you should be able to buy many
high quality (
blue chip) stocks at extremely attractive
dividend yields.
High quality companies don't just cancel
dividends out of the
blue.
ISHARES CANADIAN SELECT
DIVIDEND INDEX ETF (Toronto symbol XDV; buy or sell through brokers; ca.ishares.com), like many
blue chip ETFs, holds 30 of the
highest - yield Canadian stocks.
High - quality
blue chip stock investments give you growth and
dividend income.
General Mills Inc (GIS) is a
high quality
blue - chip
dividend growth stock with a consistent long - term record of earnings growth averaging approximately 8 % per annum.
Franklin India Prima Plus: 2500 SBI
Blue chip: 2500 Franklin India
High Growth Companies Fund: 1000 BIRLA SUN LIFE FRONTLINE EQUITY FUND — GROWTH: 1000 HDFC Equity Fund —
Dividend: Invested 1000 for 3 year now stopped SIP as I fell fund not doing good.
Southern Company has the
highest yield of these 10 utes, 5.2 % (dark
blue shading in table), but that comes with mediocre
dividend growth.
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Since you can't claim capital losses in your TFSA on investments that have gone sour, it is best to opt for
blue - chip equities with
high - yield
dividends to fill up your TFSA.
In your age, many people take
high risk by trading penny stocks and investing
high flying stocks and loose their capital, but you are making right decision in investing in
blue - chip stocks
dividend paying for long term.
Only the most stable,
blue - chip,
dividend - paying stocks should be purchased, and even then you should write in the money calls with your only goal to generate a return
higher than the borrowing cost.
As a result of such
high valuation, this
blue - chip
Dividend Aristocrat underperformed the S&P 500 on both counts — capital appreciation and dividend
Dividend Aristocrat underperformed the S&P 500 on both counts — capital appreciation and
dividenddividend income.
As a value investor, I must admit to being very frustrated with the valuations I'm seeing on
high - quality
blue - chip
dividend growth stocks.
I have a strong believe that I can achieve this goal by saving and investing in
high quality
dividend paying
blue - chip companies.
Actually, I am
dividend investor so I believe I keep receiving
dividend payments from
high quality
blue - chip companies regardless of what the overall market is doing.
There are still
high - quality attractive
blue - chip
dividend growth stocks available for current investment.
The
bluest of
blue chips in the major developed markets are the obvious & only real target for them — familiar large cap stocks which offer predictable (& increasing)
dividends, and / or predictable (&
higher than average) growth.
Invest 50 % of your initial balance in
high quality (
blue chip) companies that are growing
dividends rapidly (around 10 % per year) and which have an initial yield of 3 % to 4 %.
In an ideal world we would be 100 % invested in
high - quality,
high return on capital,
dividend growth
blue chip companies.
But it's not a risky strategy, overall, because many
high - quality
dividend growth stocks are
blue - chip stocks.
Again, keep your expectations tempered — the iShares Core
High Dividend ETF still delivers just more than 3 % in yield, but it's a clear improvement on the market average, and this fund ensures you're still invested in big, stable
blue - chip stocks.
Moreover, a true fast - growing business is capable of supporting
higher P / E ratios than traditional
blue - chip,
dividend - paying stocks.
Whereas, on the other hand, the
dividend yields from more mature and perhaps slower growing
higher - yielding
blue chips may represent more cake than icing.
On the other hand, extremely
high quality
blue - chip
dividend paying stocks such as found on David Fish's lists of Champions, Contenders and Challengers or the Standard & Poor's Dividend Aristocrats, have historically at least, provided a high level of protection against inco
dividend paying stocks such as found on David Fish's lists of Champions, Contenders and Challengers or the Standard & Poor's
Dividend Aristocrats, have historically at least, provided a high level of protection against inco
Dividend Aristocrats, have historically at least, provided a
high level of protection against income risk.
There are many
high - quality
blue - chip
dividend growth stocks that have outperformed the S&P 500 index on both capital appreciation and
dividend income.
As the years went on they branched out into buying
blue - chip,
high -
dividend stocks.
So during his late 20s and early 30s he loaded up on safe,
high -
dividend - paying
blue chips and trusts such as Canadian Oil Sands Trust, EnCana, Royal Bank, Manulife, and Johnson & Johnson.
The second is to consider substituting a portfolio of
dividend - paying
blue chip stocks for a
high - quality bond portfolio.
However, it's getting very difficult to find attractively valued
blue - chips that can provide that kind of income while simultaneously offering Read more about Eaton Corporation A
High - Yield
Dividend Growth Opportunity -LSB-...]
Corporations that are a bit smaller than the big
blue chip
dividend payers will have more room for earnings growth and more room to pay
higher dividends.
By then, you should have accummulated enough capital to purchase sound,
blue - chip companies that pay
high, consistent,
dividends.
I can't match wits with the wizards of Wall Street, but in my little pea - brain, that would seem to exemplify a big difference between «safe,»
blue - chip,
high -
dividend stocks and CDs or Treasury notes.
«Many safe,
blue - chip stocks offer
dividend yields much
higher than 10 - year Treasury notes.
I did a very small amount of research and began to invest some of the money I had in individual stocks, which were mainly
blue chips, or well - established companies that paid a
higher dividend each year, like Coca - Cola, Johnson & Johnson, and energy companies.
For example,
blue - chip stocks are stocks issued by
high - quality, large companies and generally have steady
dividend payments.
The
Dividend darlings table above highlights 12 stocks that fit both of the above criteria: the yields are
high — but not too
high — and all of them are large
blue - chip companies.