Dividend Growth Investor

Dividend Stocks: The Good, The Bad and the Ugly

Great Article as usual. PFE is also becoming a part of the ugly.

20 Top High-Dividend Growth Stocks

NTS and JET1C,

Thanks for your suggestions. While the tanker stocks do offer high current yields, their management is not committed to paying a consistent dividend check from quarter to quarter.

The 20 stocks above (with some exceptions) have been raising their payouts to shareholders for more than 25 consecutive years each. The dividend yields are above the market dividend rates. The growth in dividends in most of the stocks in my list above is above average; this will lead to most of them doubling their payment in 5-10 years.

What would you rather have a high dividend yield now which is erratic or a smaller dividend yield now which is growing rapidly?

I have found for myself that chasing high yields doesn't work for me. Thus I tend to stay away from tanker stocks and canadian trusts ( which doesn't mean they should be avoided).

The 20 Highest of the High-Yield Dividend Aristocrats

Actually my timing for posting this couldn't have been better - FITB just cut their dividends today.
I am still wondering whether BAC will cut or not. Most investors are told to buy when everyone else is selling. The $1mln question is to buy financials or not to buy them.
In early 2000 Phillip Morris ( Altria) was yielding higher than average yields at a time when the tobacco industry was under tremendous scruitiny. Fast forward 8 years from that point and MO has performed pretty well. I haven't bought any financials yet ( other than the ones which I have disclosed), and the reason for that is because the payout ratios are pretty high for me.
I wonder if 8 years from now I would be kicking myself for not purchasing all of the 20 stocks listed above or not..

The 20 Highest Yielding Dividend Aristocrats

Stewie,

It seems to me like you are still overanalysing what I have said and putting words in my mouth without fully understanding what I am talking about. I don't think I have mislead any investors in anything. I simply showed a list of stocks. What you are asking me to do, is put 1000 disclaimers covering 1000's of possible scenarios for a post that has less than 500 words. I think that at the end of the day, you need to have a little bit of common sense when interpreting information that you read.

Example - I never mentioned that I owned KEY or FITB. I also never specifically recommended buying any of the stocks in the list.
Yet I was asked how this worked out for me ( pretty well actually). I did give Stewie partial credit for finding out that TRADING bonds could give someone capital gains/losses. Yet he still didn't understand that I am referring to long-term investing, as opposed to short-term trading. etc..

In your rebuttal on capital gains on bonds, you mentioned ABS and MBS. I am not going however to falsely assume that you own them, simply because you mentioned them. Or should I?
How have those investments performed for you Stewie? I hope you haven't lost any money on them.

By the way Stewie, I am willing to reimburse you for the losses that you have suffered in the stocks in the list above from the profits that I earned from publishing this article. Please send me scanned copies with your actual trading transactions history in the abovementioned stocks from June 12, 2008. If they are also legally verified, I would be even happier. My e-mail is dividendgrowthinvestor at gmail dot com.

This is the last message that I am going to write on this particular message board. Unfortunately It is not cost effective for me to answer to every single confrontation. I realize that different people are going to have different opinions on everything. If you have 10 investors, you will definitely have more than 10 likely investment predictions. That's what makes the market tick on daily basis.

Good Luck to everyone!

D.S.

PS I always found ihttp://investopedia.com helpful in finding what different abreviations such as DPR ( Dividend Payout Ratio) mean.

The 20 Highest Yielding Dividend Aristocrats

Actually you are partially correct that bonds/fixed income could provide you with capital gains. The size of the bond market versus the stock market is irrelevant. However, longer-term passive bond investors ( people holding till maturity) do not really get much in capital gains.

The 20 Highest Yielding Dividend Aristocrats

Stewie,

I know what I am talking about. Good luck in your investments. I hope that you are better at investing than reading or spelling.

PS. I check my disclosure.

The 20 Highest Yielding Dividend Aristocrats

I want to ask all the critics above: Which part of "This portfolio is just for illustrative purposes only, however" didn't you understand?

It's really easy to criticise and to put words in one's mouth especially when you are anonymous.

I challenge you ( Stewie and MajorG) to publish any article using your real name on the internet or in a newspaper. Something constructive and brilliant.

By the way Stewie, try telling your clients that you are going to invest in bonds for the capital gains, and they will look at you as if you are coming from the woords.

Oh yeah MajorG, i didn't know that CPA's ONLY check tax returns? In addition to challenging you to write an article on Seeking Alpha I also challenge you in finding a third grader who will write any article on stock investing on his/her own.

I do realize that this list is not a comprehensive list. It wasn't intended to be. It's just a starting point.
Investing is not a black and white process. What has worked in the past might not work in the future. What might work for me, might not work for everybody else. But if you pick enough bits and pieces, then you can construct a pretty good picture and then make your own decision.

If you have read any of my previous articles, you'd have seen that I don't like purchasing stocks with DPR which is too much above 50%.