Tags: dividend | stocks | yield | aristocrat

USA Today: Dividend 'Old Faithfuls' Offer Shelter From the Storm

By    |   Tuesday, 29 April 2014 12:03 PM

Companies that have long track records of boosting their annual payouts to stockholders can be described as the dividend "Old Faithfuls," and USA Today identified the top ones that have proved the most dependable.

USA Today started with Standard & Poor's so-called "Dividend Aristocrats," a list of companies that have hiked their dividends each year for at least the past 25 years. There are currently 54 companies that meet that high hurdle of reliability.

The Dividend Aristocrats have an average yield of 2.4 percent – higher than the average 1.9 percent yield of the overall S&P 500 Index.

Editor’s Note:
5 Shocking Reasons the Dow Will Hit 60,000


The newspaper then filtered the Dividend Aristocrat list by topping it with those that pay the highest dividends.

Of course, there is no guarantee that any stocks on the resulting list will continue to boost their dividends, or even continue to pay a dividend at all.

"And another risk is that the shares of the stock might underperform the stock market, meaning investors sacrifice capital gains for dividends," USA Today said.

While, as always, past dividend performance is no guarantee of future profits, the top yield payers among the most-reliable dividend stocks in the S&P 500 are:

Stock Current Dividend Yield
HCP 5.3 percent
AT&T 5.3 percent
Consolidated Edison 4.4 percent
Leggett & Platt 3.8 percent
Cincinnati Financial 3.7 percent
AbbVie 3.4 percent
Chevron 3.2 percent
Sysco 3.2 percent
McDonald's 3.2 percent
Procter & Gamble 3.2 percent

The top name on the list, with the highest yield at 5.3 percent, is not exactly a household name. HCP is a real estate investment trust based in Long Beach, Calif., with a history of dependability.

Others that might not be overly familiar are AbbVie, a research-based biopharmaceutical company formed in 2013 following separation from Abbott Laboratories, and Sysco, a food distributor to restaurants and institutions.

Cautionary tales abound when it comes to dividend stocks, which generally suffer sudden downdrafts in their share price if their payouts are threatened.

Bank of America, formerly a dividend star like most of the nation's big banks, only last month won approval to resume a dividend for the first time since the 2008 financial crisis.

The problem is, it turns out the bank made overestimated its capital base and, according to Bloomberg, now might be forced to decide between paying a dividend and the level of its stock repurchase program.

Editor’s Note: 5 Shocking Reasons the Dow Will Hit 60,000

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Companies that have long track records of boosting their annual payouts to stockholders can be described as the dividend "Old Faithfuls," and USA Today identified the top ones that have proved the most dependable.
dividend, stocks, yield, aristocrat
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2014-03-29
Tuesday, 29 April 2014 12:03 PM
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