Top Dividend Paying Stocks That Keep On Climbing - PowerPoint PPT Presentation

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Top Dividend Paying Stocks That Keep On Climbing

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Title: Top Dividend Paying Stocks That Keep On Climbing


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Welcome to Dividend Stocks Research Your premier
site for Rankings and Reviews of the best
dividends stocks around. For more info on
dividend stocks please visit our website
DividendStocksResearch.com
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  • Hi, My name is Aaron and Im with Dividend Stocks
    Research, today were reviewing our recently
    published article

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Top Dividend Paying Stocks That Keep On Climbing
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Wondering how to find the top dividend stocks
that will keep on climbing? Want to find the best
dividend paying stocks where the actual dividend
will grow along with the price of the stock
itself?
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Isnt that too much to ask for? Kind of like Joe
DiMaggio expecting Marilyn Monroe to cook? (She
couldnt. Their marriage lasted 3 years.)
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History shows us that you can have it both ways.
You actually can find dividend stocks to buy
that will increase in value and keep the dividend
growing.
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One way is to find companies that grow their
earnings year after year. This is why dividend
investors have had a longstanding love affair
with utility stocks. Even when earnings growth
is modest, consistent growth provides a nice
payoff.
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What you give up with a utility stock is capital
appreciation... the stock price tends to stay
steady. And share price volatility tends to stay
low. But when earnings grow, the cash flow stays
healthy, and the dividend grows, even by just a
little bit each year...
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It doesnt take long for the profits of the top
dividend paying stocks to start steamrolling.
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What To Look For In Top Dividend Paying Stocks
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When you look at any company, big or small,
whether its an upstart newcomer or a long-time
performer, try to get a feel for the future.
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Some of these young companies that pay dividends
probably shouldnt be. It would be more prudent
to pay off debt or sink profits back into growing
the business. Look at Apple AAPL.
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It dumped its dividend in 2005, the year the
stock split, then brought it back in 2012. Since
then the dividend has been growing. Dividend
growth was 15 in 2013, and 8 in 2014.
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Apple is a great example of a company thats made
the transition from Young Turk, growth-oriented
upstart to mature company.
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In a way, Apple is still one of the best dividend
growth stocks even though the days of growing
pains are in the past. Is Apple one of the top
dividend paying stocks you should look at? Sure,
and heres why.
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The dividend is growing, the dividend payout
ratio is a poster child at 23, and the yield
isnt bad, at 1.6.
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Why would I say, The yield isnt bad when its
down below 2? Dividend growth. Apple has plenty
of money, and plenty of opportunity to grow the
dividend. This is the combo you want to look for
when youre sizing up the top dividend paying
stocks.
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But lets face it. A lot of investors believe
that when Apple stumbles, and a new product
launch falls short of expectations, the stock
will take a hit... perhaps a terrible hit.
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If Apple doesnt sell one of its new watches to
everyone you know, is this viewed as a tragic
failure? It could be. The market is irrational.
Punishments are doled out without reason.
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This irrational market behavior is something you
can never forget when youre investing in the top
dividend stocks... or any stocks. So the smartest
investors use this to their advantage.
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A Lesson From Warren Buffets Mentor
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Benjamin Graham was Warren Buffets first boss,
and had more to do with shaping Buffets
investment approach than anyone. Graham was
always comfortable chalking market movement up to
reasons that didnt make any sense.
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He knew better than most that emotions and
feelings were a big part of how stocks were
priced, and how the markets overall direction
was set. Graham said...
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The most realistic distinction between the
investor and the speculator is found in their
attitude toward stock-market movements. The
speculator's primary interest lies in
anticipating and profiting from market
fluctuations.
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The investor's primary interest lies in acquiring
and holding suitable securities at suitable
prices. Market movements are important to him in
a practical sense, because they alternately
create low price levels at which he would be wise
to buy and high price levels at which he certainly
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should refrain from buying and probably would be
wise to sell.
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I love Grahams phrase, ...acquiring and holding
suitable securities at suitable prices. Thats
what its all about, isnt it? (Unless youre
out to make a fast buck.)
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So when it comes to the best dividend stocks, we
should figure out whats suitable. First,
whats suitable for you might not be suitable for
me. You might be looking to pump some extra
income into an existing portfolio with some high
yield stocks.
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Or you might be looking to add some stability
with one of the SP 500 Dividend
Aristocrats. Whatever kind of yield youve got in
mind, and if youre looking for a stock that will
keep on climbing, think long-term.
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The Top Dividend Paying Stocks Perform Over The
Long Haul
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The top dividend paying stocks will reward you
two ways... with growing dividends and a growing
share price. Over time, the two add up, even
when the share price doesnt do much.
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Since 1926, according to Ibbotson Associates,
more than 40 of the markets total return has
come from the dividends.
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This is why Im not gung ho on high yields or
soaring prices. One place you can look for
dividend stocks like this is on the lineup of the
NASDAQ Dividend Achievers. There are more than
200 of these stocks and these days, most of them
are pretty expensive.
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Thats what happens when youve got a bull market
thats been on a six-year tear. Theres a good
case to be made for the market running out of
steam, and for sitting back, waiting for a
correction.
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Well, thats good thinking... but only if youre
thinking about buying a broad market index ETF
like the SPDR SP 500 ETF Trust SPY.
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Its not good thinking when you look at different
industries, where a lot of stocks have been beat
up badly, and are actually cheaper than they were
a year ago. One of the industries thats been
beaten to a pulp is energy.
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Check out Chevron CVX and Exxon Mobil XOM, two
SP 500 Dividend Aristocrats.
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And if you like the idea of prowling through the
oil patch to discover some of the top paying
dividend stocks that arent in the limelight, let
me give you an example.
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Helmerich Payne HP is an Oklahoma outfit that
pays a 4.59 dividend. Its in the contract
drilling business and sinks wells in South
America, Africa, and the Middle East.
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You can buy it cheap. The P/E Ratio is 9.2. Not
bad, about half of what the overall market goes
for.
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The hitch... the dividend payout ratio is high...
94.2. But the Helmerich Payne track record is
impeccable... these guys know how to ride out a
storm. The stock has been paying a growing
dividend for 42 years.
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But talk about a stock thats out of favor...
take a look at what Helmerich Payne was trading
for just last summer...
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An uptick in oil prices, an upsurge in
exploration and drilling, and a company like
Helmerich Payne is on fire. Sure, the yield
will go down as the share price goes up. But for
folks who pick it up now, its got everything you
need for an income flamethrower.
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The Smart Choice for Dividend Paying Stocks
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Growing dividends and a growing share price. Too
much to ask for? Dividend stocks that keep
raising dividends are out there. You just want
to dodge the temptations of the overpriced market
and go find them.
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And while youre avoiding expensive stocks, steer
clear of high yields that will be tough for
companies to keep paying.
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Look for good companies like Helmerich Payne
that are out of favor. Thats how to get the most
from your dividend stocks.
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