Tags: dividend | stocks | investors | buy

7 Dividend Stocks With Rising Payouts

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Tuesday, 13 November 2018 11:06 AM

The recent stock-market volatility and seemingly endless trade-tariff war have investors scrambling for shelter in the financial storm.

Adding to the fear and confusion is the cold-hard fact that some of the world’s most iconic companies have significantly reduced their dividends, such as GE (GE) and Anheuser Busch (BUD). Not only did this reduce the income but there were also major drops in the stock prices. For the year so far, GE stock is off by 50% and BUD is down 33%.

InvestorPlace’s Tom Taulli advises savvy investors that “one way is to look at companies that have a long track record of increasing their dividends. For the most part, this is an indication of financial strength — but also means that management has a focus on shareholder value.”

Taulli’s offered seven picks, according to Yahoo Finance:

  1. Exxon Mobil (XOM); Dividend Yield: 4%
  2. Ford (F); Dividend Yield: 6.3%
  3. International Business Machines (IBM); Dividend Yield: 5.1%
  4. Procter & Gamble (PG); Dividend Yield: 3.1%
  5. LTC Properties (LTC); Dividend Yield: 5%
  6. Johnson & Johnson (JNJ); Dividend Yield: 2.5%
  7. PepsiCo (PEP); Dividend Yield: 3.2%

However, not everyone is as optimistic about dividend stocks.

Forbes.com contributor Jim Dahle recently offered a handful of reasons to avoid such stocks.

"The main problem with focusing on dividend-paying stocks is that it often leads to individual stock investing. An investor choosing her own stocks is taking on uncompensated risk. Uncompensated risk is risk that can be diversified away," Dahle wrote.

"Said another way, if you can diversify a risk away, you will not be paid for it. Holding a portfolio of five or ten stocks involves taking a lot of single stock risk. Since this risk can be diversified away by simply purchasing a low-cost, broadly-diversified index fund, the investor is not compensated for it. Investing is all about risk control; there is no reason to run risks you are not paid for."

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The recent stock-market volatility and seemingly endless trade-tariff war have investors scrambling for shelter in the financial storm.
dividend, stocks, investors, buy
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2018-06-13
Tuesday, 13 November 2018 11:06 AM
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