"My intention was to find stocks that offer nice paydays but also that were steadily increasing those dividends and outperforming the market. The result is this lineup of 13 stocks that I call the Ultimate Dividend list.”
Rockville, Md. (PRWEB) July 23, 2012
InvestorPlace.com editor Jeff Reeves has compiled a free resource for investors looking for the best dividend stocks to buy: a list of the 13 Ultimate Dividend Stocks. The list, which is available on InvestorPlace.com, includes 13 mid- and large-cap companies that yield at least 2.5% and are currently outperforming the S&P 500.
“Dividend investing is all the rage,” said Reeves, “but as I have mentioned before, yield isn’t everything these days. There’s a lot to be said for chasing sustainability instead of paydays that won’t last. My intention was to find stocks that offer nice paydays but also that were steadily increasing those dividends and outperforming the market. The result is this lineup of 13 stocks that I call the Ultimate Dividend list.”
In order to be considered for the list, the stocks had to meet several criteria. Each stock had to yield at least 2.5%. They also must have been paying shareholders a dividend for at least 60 years, and must have increased that dividend every year for at least 25 consecutive years.
The last factor that was evaluated was share price returns. Reeves explains, “To incorporate dividends, I used total returns with dividends versus the S&P performance plus dividends. Any stock that didn’t at least come close to tracking the market was kicked out. That in itself is worth noting because with dividends, the S&P 500 is up roughly 82% over the last 10 years [as of July 13], but without dividends, the index is only up 50%. That really speaks to the power of dividends in your portfolio.”
“For good measure, I tried to quantify how much dividends have increased in the last 10 years as a percentage. The ‘worst’ stock on the list boosted payouts by only 9% in 10 years, but the best, PepsiCo, almost tripled distributions with a whopping 271% jump in dividend payments in the last decade.”
See the entire list of Ultimate Dividend Stocks at: http://www.investorplace.com/2012/07/13-ultimate-dividend-stocks/2/.
InvestorPlace.com is a leading financial news and investing site, providing millions of individual investors with access to free stock picks, mutual fund research, market news and sharp, actionable commentary. InvestorPlace Media is privately owned by Avista Capital Partners, with offices in Rockville, Md., just outside Washington, D.C.