Tags: Kiplinger | Dividend | Stocks | Soar

Kiplinger: Dividend Stocks Are Certain to Soar

By    |   Monday, 24 May 2010 02:53 PM

While there is no guarantee that U.S. stock prices will rise this year, dividends are almost certain to increase, according to Kiplinger’s Reiterment Report.

That makes dividend stocks a must-have investment now.

The 368 dividend-paying companies in the Standard & Poor’s 500 Index are expected to increase their payouts by 8 percent this year from 2009, Kiplinger’s reports. That’s because companies are now rich in cash.

Kiplinger’s recommends you filter for several kinds of companies when choosing dividend stocks:

• Companies that have lifted their dividends by at least 10 percent annually for years. Some corporations fitting that bill are Cardinal Health, CSX, McDonald’s, Praxair and Yum Brands.

• Companies that have just started issuing dividends within the past few years. In this category, consider Activision Blizzard, CenturyLink, Intel, Texas Instruments and Wal-Mart Stores.

• Established non-financial companies with hefty dividends. Companies that qualify on that score include AT&T, Exelon and Kimberly Clark.

• Foreign companies. Consider British American Tobacco and Unilever.

• Dividend ETFs. Possibilities include Vanguard Dividend Appreciation, SPDR S&P Dividend, PowerShares International Dividend Achievers Portfolio and SPDR S&P International Dividend.

John Bogle, legendary founder of The Vanguard Group, thinks juicy dividend yields will help make stocks a strong investment this decade.

With dividends running at a 2.25 to 2.50 percent annual rate, and corporate earnings likely to increase 6 to 7 percent annually, stocks can return 8-9 percent a year through 2019, he told Fox News.

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While there is no guarantee that U.S. stock prices will rise this year, dividends are almost certain to increase, according to Kiplinger s Reiterment Report. That makes dividend stocks a must-have investment now. The 368 dividend-paying companies in the Standard Poor s...
Kiplinger,Dividend,Stocks,Soar
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2010-53-24
Monday, 24 May 2010 02:53 PM
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