Dividend Inc

Top Dividend Stocks to Accumulate Now

Great list of companies and agree with most comments. I think that McDonald's (MCD) looks the best of the bunch. However, after a 74% run up, I find McGrawHill (MHP) hard to justify at this point. I mean, MHP has got to revert to the mean at some point, and soon. I guess that explains why the stock has traced out a top since May 2009.

The 10 Best U.S. Dividend Stocks

Greetings D4L,

It would be good to review the performance of your recommendation since this article was first published. Although some would argue that a person should invest and forget when it comes to dividend paying stocks, I would say that knowing your winners and losers helps to keep your selection trim and fit. The average return of the stocks selected in my top ten has been 4.39% since 10/9/2009. I'd love to know your take on the performance since your last recommendation on October 7th.

Below is the full article link to my update on the top ten stocks.
dividendinc.blogspot.c...

Best regards,

Touc
Dividend Inc.

The 10 Best U.S. Dividend Stocks

From bottom to top, my Dividend companies are:


10. Exxon Mobil (XOM): XOM has increased its dividend every year for 26 years in a row. Additionally, the company is within 23% of 52-week low with a dividend payout ratio of 41%.


9. Abbott Laboratories (ABT): ABT has increased its dividend every year for 36 years in a row. ABT is within 22% of the 52-week low with a dividend payout ratio of 41%. I have written about ABT on September 21, 2009 displaying the altimeter for ABT on a long term basis.


8. McCormick & Co. (MKC): MKC has increased its dividend every year for 22 years in a row. Also, MKC is within 20% of the 52-week low with dividend payout ratio of 42%.


7. Becton Dickinson (BDX): BDX has increased its dividend every year for 36 years in a row. BDX is within 19% of the 52-week low with a dividend payout ratio of 27%. I mentioned BDX on May 4, 2009, suggesting that this stock should be bought. On August 19, 2009, I reiterated my claim that BDX was worthy of consideration, especially after Warren Buffett himself had jumped on board after our May 4th posting.


6. Piedmont Natural Gas (PNY): PNY has increased its dividend every year for 29 years in a row. PNY is within 16% of the 52-week low with a dividend payout ratio of 69%.


5. Northwest Natural Gas (NWN): NWN has increased its dividend every year for 54 years in a row. NWN is within 16% of the 52-week low with a dividend payout ratio of 59%. NWN has been presented by me on September 22, 2009 and finally on October 3, 2009.


4. Bard Inc. (BCR): BCR has increased its dividend every year for 54 years in a row. BCR is within 14% of the 52-week low with a dividend payout ratio of 13%. Bard Inc. was first mentioned on Dividend Inc. on April 23, 2009. At the time, I mentioned that BCR has a very low debt level which allows the company to weather further economic declines. On August 26, 2009, after gaining 10.11% in 4 months, I recommended selling this stock.


3. Weyco Group (WEYS): WEYS has increased its dividend every year for 28 years in a row. WEYS is within 13% of the 52-week low with a dividend payout ratio of 54%. Weyco, the maker of Florsheim shoes, was featured on Dividend Inc. on July 6, 2009. Two negatives for this company are that there payout ratio is so high and stock is not very liquid.


2. Cardinal Health (CAH): CAH has increased its dividend every year for 16 years in a row. CAH is within 10% of the 52-week low with a dividend payout ratio of 32%. CAH was featured on June 4, 2009 and is considered, in my opinion, one of the most underpriced healthcare stocks out there. The current low price of CAH is due to the spinoff of the CareFusion (CFN) unit. However, the upside projections of CAH are, at minimum, in the $40 range.


1. Wal-Mart (WMT): WMT has increased its dividend every year for 33 years in a row. WMT is within 8% of the 52-week low with a dividend payout ratio of 30%. WMT was first mentioned on June 18, 2009 when I pointed out the fact that with such an extended range bound price for the stock there has to be value accruing in the stock. A further examination of WMT was done on September 19, 2009, in that assessment I determined that, on a price-to-dividend basis, WMT is poised in increase in value. One significant downside for this stock is the large increase in shares outstanding in the last few years. Touc.

When Timing Meets Opportunity: Which Dividend Achievers Are at a 52-Week Low?

Greetings BlueOkie,

I have backtested this approach since 1994 and actually used this method since 2004. Essentially, I took 10 years of testing and countless number of timesbacktesting this approach. My method obviously isn't the answer however it has returned double digit positive gains since 2004.

Greetings Larrysyr,

I totally agree with you about the viability of this method for the long term. However, when you visit my blog you'll see clear indications of when I issue a sellrecommendation. Additionally, I attempt to " seek fair profits" by holding only as long as it takes to beat "guaranteed" sources of income like treasuries or CDs. My "About This Site" section is much more clear on this concept.

Another matter to consider, if the return from the stock exceeds the dividend that could have been received within a year then the investor should seek betteralternatives. As as example, if a stock yields 5% but the price increases 10% in 6 months then the justification for holding the stock any longer has dissipated. I wouldn't sell the stock but I would definitely research any stocks that are within 10% of the 52-week low seeking to switch from one to another.

Another matter that is critical to my approach as listed on the blog is that I don't follow traditional diversification orthodoxy. I only hold 2 to 5 stocks at a time. This mean that 20% to 50% of investable funds will go into one stock. My attempt at explaining this concept can be found in the article titled "Diversification Doesn't Matter."

Elliot_Mllr,

Personally, I de-emphasis the matter of dividend yield. Dividend yield is the red herring in investment decision making among Dividend Achievers. Almost any company can pay out anoutsized dividend long enough to draw in new investors. More important to me is the earnings power and quality management behind the dividend yield. As far as I'm concerned the consistency of dividend increase is proof of both. As an example, when I issued my research recommendation of Helmerich & Payne in 2006 the dividend yield was less than 1%. However, if the stock was bought at or near the date of the recommendation the short and long term gains that followed were beyond what could have been received through any high dividend yield.