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.
Each one of these stocks has paid
higher dividends every year for at least 25 years, each is a high quality business, each has a large moat, and each has proven itself through multiple business cycles, not only maintaining the dividend but even increasing them during recessions.
Williams Companies (WMB) had paid
higher dividends each year since 2004, grown its dividend by 38 % per year over the last five years, and earned most of its income from regulated assets generating «safe» fee - based revenue from long - term contracts.
Not exact matches
Combine that with a sparkling balance sheet and its history of never cutting its
dividend — the yield is now 2.5 % — and its beaten - down share price (down by a third over the past two
years) looks like an opportunity to pick up a
high - quality bargain.
Gold miner Northern Star Resources has increased its
dividend payout after confirming a 65 per cent jump in full -
year profit, on the back of
higher gold prices and a reduction in costs.
But if Buffett were to swap his preferred shares for those 700 million shares of common shares, he would be looking at
higher dividends of $ 336 million a
year.
This
year, just two of the 10
dividend companies we list here have yields that low, which should reinforce the notion that there is more to picking
dividend stocks than seeking out the company with the
highest yield.
His
High Dividend Fund has a 10.89 % 10 -
year annualized return.
The 10 -
Year's move above 3 %, which is believed to be a «psychological» level by many, may be unwelcome competition for
dividend paying stocks, especially if it continues to head
higher.
Compared to the broad XIC, XEG has a) a price to earnings ratio that is only slightly
higher, b) a price to book ratio that is lower, c) a debt to equity ratio that is about half of XIC, d) a
dividend yield that is comparable and e) profit margins that grew 30 % this
year versus 18 % for XIC.
Two -
year treasury now
higher than S&P 500
dividend yield.
You want to be prepared for all seasons; to know that regardless of what happens with your employment situation, the government's budget, the Federal Reserve and interest rates, or the stock market, your family will enjoy
higher income from
dividends, interest, and rents with each passing
year.
To me, the process is simple: If you are contemplating the purchase of a company with a
high internal growth rate (which I define as expected growth north of 10 % for the next ten
year years), and it pays no
dividend or a negligible
dividend, then stuff the investment in a taxable account provided you have already gotten any possible matching from a company's retirement account.
Given those durations, an investor with 15 - 20
years to invest could literally plow their entire portfolio into stocks and long - term bonds, in expectation of very
high long - term returns, with the additional comfort that their financial security did not rely on the direction of the markets, thanks to the ability to reinvest generous coupon payments and
dividends.
We assess the value of
dividends in various interest rate environments over an 88 -
year period and discuss how to avoid typical «yield traps» in the design of
high -
dividend strategies.
The company with 23 consecutive
years of
higher dividends.
CIX has a
dividend streak of 6
years and their 2015
dividend was
higher than 2014, so I've moved them back to the All - Star tab.
Currently, their
dividend yields 3.26 %, which is
higher than their 5
year average.
I've also included a Google Docs list of all the companies in the list with their streak length, but the excel spreadsheets provided above have a lot more information like the
dividend yield, average
highest yield for 3, 5 and 10
years, the past 10
years worth of
dividends, and lots of other stock information.
My IRAs are primarily in widow and orphan
dividend growth stocks, and I keep about one
year's worth of expenses in
high - yield preferred ETFs as an emergency fund.
They are also a
dividend challenger, having paid out
higher dividends for 5 straight
years.
A value over 1.0 suggests that the
dividend growth rate has been increasing as the 5
year rate is
higher than the 10
year rate.
You have to pay tax on those
dividends every
year (bonds that pay interest are taxed even
higher).
In the short run, anything's possible for the market, and so making a purchase of Vanguard
High Dividend Yield ETF right now isn't sure to make you big money in the next month or even the next
year.
This
year we sold some small caps and
high -
dividend yield funds in our taxable account.
We sold some small caps at the beginning of the
year and some
high -
dividend yield growth funds during the summer.
Although traditional
high dividend payers (think the utilities and telecom sectors) have performed strongly in recent
years, they've become quite expensive by most valuation metrics.
• The company's rate of
dividend growth each
year has been steadily
high since the Great Recession ended in 2009.
For example if you bought Vanguard
High Dividend Yield ETF (VYM), a holding in the
Dividends Diversify Model Portfolios, during the market peak of 2007 and held though summer of this year, you would have earned about a 7.5 % annual total return including d
Dividends Diversify Model Portfolios, during the market peak of 2007 and held though summer of this
year, you would have earned about a 7.5 % annual total return including
dividendsdividends.
And what could be lower
dividend growth moving forward (relative to that big 10 -
year DGR) is compensated by a relatively
high yield of 2.97 %.
2018 could be phenomenal for the stock, but I don't see any reason why this company can't continue pumping out bigger
dividends and
higher returns for shareholders for many
years to come.
This puts the total
dividends for the fiscal 2015
year on track to be 15 %
higher than fiscal 2014.
The current yield of 1.55 % might not be massive like AT&T's
dividend (which is why we diversify, and it's why I'm listing 10 different stocks with different dynamics here), but Walt Disney more than makes up for that via strong
dividend growth: the five -
year dividend growth rate is 30.1 %, which is one of the
higher rates you'll run across.
While buybacks and
dividends - as - a-percent of sales more than doubled from a post - recession low of 3.5 % to a
high last
year of more than 8 %, capex - as - a-percent of sales has largely stayed within a narrow range between 4 % and 5 %, and has not even recovered to its pre-GFC
high.
If you're an income investor, you're looking for stocks that have
higher - than - average
dividends and
dividend yields, a steady track record of paying out
dividends, stable performance, solid reputations, and rising
dividends year over
year.
December is the second
highest dividend producing month of the
year for me.....
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.
It will never be a flying
high stock anymore, but the consistency of its
dividend payments and its incredible growth rate (the KO
dividend doubles on average every 10
years) are solid enough to make KO a key investment in your holdings.
As such,
dividend growth in the next few
years certainly won't match that last few, but I'm very content with that given the exceedingly
high current yield, my
high confidence in Textainer to ride the storm through to better times, and ultra-safe P / E and reasonable payout ratio.
Admittedly, during the aggressive quantitative easing measures by the Fed over the past few
years,
high yielding
dividend stocks have done quite well.
If a company has proven that it can average a
high return on total capital within the majority of its business operations (averaging, say, 15 % + per
year for many
years) then the company can reinvest what would be
dividends, and thus save the shareholder tax.
• Excellent on certain
dividend categories, including 43 straight
years of increases, low payout ratio, and
highest yield ever available • Declining number of shares over the past 10
years makes each remaining share worth a
higher percentage of the company.
As you can see many of the stocks mentioned may have
high current PE's but also feature long to very long
dividend histories with relatively
high ten
year annualized
dividend growth rates at around or better than 10 %.
These funds select solely on
high yields, though, with no extra points given to companies that can increase their
dividends year after
year.
These nearly zero interest rates is what drove many U.S. and European fixed income investors towards
higher income opportunities in their own home countries — so, they bought more equities, REITs and
dividend growth stocks over the last 5
years, driving up valuations (though the February correction has brought back some sanity.)
This is a good
dividend growth resume, highlighted by the 45 -
year streak of
dividend increases and the
high dividend safety grades.
Therefore, they're most likely to hold beaten down
dividend payers and
high yielding REITs, neither of which necessarily present the opportunity for
years upon
years of
dividend growth.
For the entire
year,
dividends amounted to $ 415.4 billion, the second -
highest total in 10
years.
Where we've been wrong the past two
years is that capital requirements kept moving
higher, so less cash was available for
dividends or repurchase.
High -
dividend stocks have outperformed
dividend growers in the past
year, but our analysis shows they historically have been vulnerable to
higher rates.