|
 The
S&P High Yield Dividend Aristocrats Index is a method of measuring
the 60 highest dividend
paying stocks in the S&P Composite 1500 index & only lists
those companies that have consistently raised their dividends in the last
25 years, without missing a single year. The advantage of investing in
above-average dividend paying stocks is that the dividend yields serve
as a downside protection in bear markets & typically outperform the
broader S&P 500 index during bull markets because of recurring dividends.
The S&P High Yield Dividend Aristocrats index lists companies not
only from utility/telecommuncations sectors but across all sectors of
the market including Technology, Restaurants, Pharmaceuticals & Agricultural
Commodities.
 Investors
are well versed with the advantages of dividend investing. When you re-invest
dividends to buy more shares of your holdings, the advantage of compounding
growth works in your favor. As an example, suppose we buy 1000 shares
of a stock that is currently trading at $10 per share. Annual dividend
rate is 6% and grows at 5% a year. What will we have at the end of 25
years? Here is the relevant data:
- 1000 shares owned
- $10 per share
- Total investment = $10,000
- Dividend yield = 6%
- Dividend growth rate = 5%
- Years to hold = 25
Using a dividend growth calculator, here are the results:
The results are: You started with $10,000.00
and ended up with $193,180.43 for a total gain
of 1931.80%. This was over 25 years so that
makes your average annual gain 77.27%.
If you are looking for the safest dividend yields in the
stock market, start with the S&P High Yield Dividend Aristocrats list
below. Note that this is not a recommendation to buy these stocks, do
your due diligence beforehand.
Note: The list below is derived from www.standardandpoors.com
website. We created 2 columns & inputted the Dividend Yield as of
March 11th, 2010 & the Sector that company does business in.
| CenturyLink Inc |
CTL |
7.17 |
Communications |
| Mercury General
Corp |
MCY |
6.11 |
Automobile Insurance |
| National Retail
Properties Inc |
NNN |
6.02 |
Real Estate Investment Trust (REIT) |
| Pitney Bowes Inc |
PBI |
6.00 |
Mail Processing Equipment/Solutions |
| Vectren Corp |
VVC |
5.20 |
Utilities |
| HCP Inc |
HCP |
5.05 |
Real Estate Investment Trust (REIT) |
| Cincinnati Financial
Corp |
CINF |
4.84 |
Insurance Services |
| Consolidated Edison
Inc |
ED |
4.77 |
Utilities |
| Leggett & Platt |
LEG |
4.65 |
Engineered Products |
| Universal Corp |
UVV |
4.60 |
Leaf Tobacco Merchant |
| Black Hills Corp |
BKH |
4.55 |
Diversified Energy |
| Kimberly-Clark |
KMB |
4.33 |
Personal Healthcare |
| WGL Holdings Inc |
WGL |
4.09 |
Natural Gas |
| Atmos Energy Corp |
ATO |
4.00 |
Natural Gas |
| Abbott Laboratories |
ABT |
3.96 |
Healthcare |
| Piedmont Natural
Gas Inc |
PNY |
3.92 |
Natural Gas/Energies |
| RPM International
Inc. |
RPM |
3.72 |
Chemical Products |
| Northwest Natural
Gas Co |
NWN |
3.70 |
Natural Gas |
| Johnson & Johnson |
JNJ |
3.62 |
Consumer Healthcare Products |
| Questar Corp |
STR |
3.56 |
Natural Gas/Energies |
| Genuine Parts Co |
GPC |
3.46 |
Automotive Parts |
| Clorox Co |
CLX |
3.23 |
Consumer Products |
| Diebold Inc |
DBD |
3.21 |
Security Solutions |
| McDonald's Corp |
MCD |
3.18 |
Global Fast Foods |
| UGI Corp |
UGI |
3.14 |
Energy Products Marketer |
| Procter & Gamble |
PG |
3.13 |
Consumer Packaged Goods |
| Sonoco Products
Co |
SON |
3.12 |
Industrial Products |
| Bemis Co Inc |
BMS |
2.98 |
Packaging |
| PepsiCo Inc |
PEP |
2.97 |
Global Beverages/Foods |
| Colgate-Palmolive
Co |
CL |
2.93 |
Consumer Products |
| Coca-Cola Co |
KO |
2.90 |
Beverages |
| Chevron Corp |
CVX |
2.88 |
Oil/Natural Gas |
| Westamerica Bancorporatn
(CA) |
WABC |
2.87 |
Banking |
| Automatic Data
Processing |
ADP |
2.86 |
Payroll Services |
| Wal-Mart Stores |
WMT |
2.78 |
Consumer Retail Products |
| McGraw-Hill Cos
Inc |
MHP |
2.66 |
Information Services/Books |
| Chubb Corp |
CB |
2.64 |
Insurance Services |
| VF Corp |
VFC |
2.57 |
Apparels |
| PPG Industries
Inc |
PPG |
2.51 |
Protective Coatings |
| 3M Co |
MMM |
2.40 |
Diversified Technology |
| Eaton Vance Corp |
EV |
2.32 |
Investment Manager (High Net Worth) |
| Emerson Electric
Co |
EMR |
2.32 |
Diversified Technology |
| Commerce Bancshares
Inc (MO) |
CBSH |
2.29 |
Banking |
| McCormick &
Co |
MKC |
2.29 |
Food Spices Manufacturer |
| Air Products &
Chemicals Inc |
APD |
2.25 |
Industrial Gases |
| Pentair Inc |
PNR |
2.21 |
Industrial Manufacturing |
| Stanley Black &
Decker |
SWK |
2.17 |
Power Tools / Storage Services |
| AFLAC Inc |
AFL |
2.16 |
Life Insurance |
| Exxon Mobil Corp |
XOM |
2.14 |
Oil/Natural Gas Manufacturer |
| Becton, Dickinson
& Co |
BDX |
2.08 |
Medical Technology |
| National Fuel Gas |
NFG |
2.00 |
Diversified Energy |
| Cardinal Health
Inc |
CAH |
1.92 |
Healthcare Solutions |
| Valspar Corp |
VAL |
1.91 |
Paint Manufacturer |
| Brown-Forman Corp
B |
BF.B |
1.86 |
Alcohol Beverages |
| Hormel Foods Corp |
HRL |
1.84 |
Meat/Foods Producer |
| Archer-Daniels-Midland
Co |
ADM |
1.77 |
Agricultural Commodities |
| Sherwin-Williams
Co |
SHW |
1.76 |
Paint & Coatings Manufacturer |
| Dover Corp |
DOV |
1.73 |
Industrial Systems |
| Walgreen Co |
WAG |
1.67 |
Drugstores/Household Prescriptions |
| Lowe's Cos Inc |
LOW |
1.63 |
Home Improvement Retailer |
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