Standard & Poor's: Use Caution when Selecting Dividend Paying Stocks

Feb.18.09 | About: SPDR S&P (SPY)

Howard Silverblatt, Senior Index Analyst with Standard & Poor's, prepared a list of 142 S&P 500 issues that have paid increased cash dividends (.xls) for at least ten years in a row, or have paid increased cash dividends in at least 20 out of the last 25 years. Additionally, Mr. Silverblatt included information on companies whose earnings covered twice the annual dividend payment.

A video discussion of dividends is available at this dividend video link. Given the number of dividend reductions, it is not surprising that Mr. Silverblatt advises caution in simply focusing on yield when selecting dividend-paying stocks.

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