At the Daily Tape we look for opportunities in the market this includes short term plays as well as those that produce the best dividends for your money. We follow the best traders and investment commentary out there for one main reason, to make us the most money possible and to offer this information to our readers.
Thanks to Fool commentary we want to share with you the best dividend stocks out there.
Don’t be fooled into thinking dividend stocks are just for those nearing retirement, though. For fans of growth stocks, a study by Robert Arnott and Clifford Asness actually links higher dividend payouts to higher earnings growth. Further, Wharton professor Jeremy Siegel has studied the dividend situation and concludes: “Through the years, diversified portfolios of stocks that pay dividends have not only beaten those that don’t, but have also handily outperformed the S&P 500.”
So what are the biggest payers?
For those looking for some of these dividend plays, Standard & Poor’s helps us out. Each year, they construct a list called the Dividend Aristocrats. These are “large cap, blue chip companies within the S&P 500 that have followed a policy of increasing dividends every year for at least 25 consecutive years.”
Yes, you read that right. 25 years.
Only a few dozen companies make the list. Here are the seven with the highest dividend yields.
Only a few dozen companies make the list. Here are the seven with the highest dividend yields.
Company Industry Market Cap Payout Ratio P/E (trailing) Dividend Yield CenturyLink (NYSE: CTL) Telecom $10.7 billion 85% 12.9 8.12% Pitney Bowes (NYSE: PBI) Mail processing equipment $5.1 billion 75% 12.4 5.93% Cincinnati Financial(Nasdaq: CINF) Property casualty insurance $4.5 billion 55% 9.8 5.64% Integrys Energy Group(NYSE: TEG) Utility $3.8 billion 127% 24.2 5.54% Eli Lilly (NYSE: LLY) Pharmaceuticals $41.1 billion 49% 8.9 5.43% Consolidated Edison(NYSE: ED) Utility $13.3 billion 66% 14.4 5.05% Leggett & Platt (NYSE:LEG) Home furnishing components $3.0 billion 83% 17.3 4.86%
Want more information find out Great News for Investors: Stocks Yield More Than Bonds
We have seen some growth in share prices since we first featured these two with ABX going from 19.15 to 22.74 and AUY going from 3.89 to 4.63. It is a good climb but I suspect there will be some bumps that I am willing to take for a bit longer term because I think at this point they are both a bit undervalued.
Now I believe I have been vindicated in this stance given that many institutions of its ilk have proven to be very vulnerable and BAC continues to grow. Of course weaknesses in the overall market have had their effect on BAC shareprice but the story here remains one of the more reliable dividends available to investors. Some of the smartest investors have been turning an eye towards equity income and BAC is providing one of the larger paychecks for its shareholders.