In 2007 the financial sector was responsible for $51 billion in dividend payments to shareholders. By 2010, that amount had decreased to just $19 billion. The mortgage crisis forced many banks to cut or even suspend dividend payments. Returning the clock to present day, it is hard not to get excited about the potential for bank stocks in the current market. The Financial Sector ETF (XLF) has gained nearly 20% since the beginning of the year. The majority of banks are passing the government mandated "stress tests" and dividend payments are increasing on a regular basis once again.

I took a chance on a rebound in the sector in 2011 by buying stock in PNC Financial Services Group (PNC). I have since been rewarded with a 20% increase in the stock price and, more importantly to me, a 26% increase in dividends. Based on the current market I am very

As a dividend growth investor, one of the primary stats I look at when evaluating a stock is the number of annual dividend increases. The longer a stock has been increasing its dividend payment, the more that becomes part of the corporate identity. Typically, it takes a major event within the company (or industry) to prevent the board of directors from continuing to raise its dividend after a long history has been established. This adds a layer of safety that helps me sleep better at night. I am quite certain that Kimberly-Clark (KMB) - 38 years of increases, Wal-Mart (WMT) - 37 years of increases, and AFLAC (AFL) - 30 years of increases, will provide me with a raise once again this year. Companies like these should be at the core of any dividend growth portfolio.

I also believe that the younger dividend payers play an important role as well.

I have been a dividend growth investor for over eight years now. Over those years, I have slowly allocated a diverse portfolio that is spread out among the major sectors, except for one. I have yet to invest in any utility stocks. Now this may come as a shock to other dividend growth investors as utility stocks have been a cornerstone for many dividend portfolios.

Utility stocks have a long history of paying dividends to their shareholders. This is because what they provide (electricity, water, gas) are always in need, despite what the economy is doing. These stocks tend to have stable, predictable, and secure cash flows. And their stocks are typically less volatile vs. the overall market (low beta).

The problem I have had is finding the right utility stock to buy at the right time. I have felt for some time now that the utility sector has been

I always enjoy coming across lesser-known companies who have stellar dividend track records. Although I had heard of Leggett & Platt (LEG) and briefly skimmed over the stock in the past, I did not appreciate its impressive dividend history until doing this analysis. A mid-cap ($3.5 billion) company that has been paying a dividend for 73 years and increasing that dividend for 40 years deserves more attention. Well LEG, you've caught my attention.

Company Description: LEG is a diversified manufacturer that conceives, designs, and produces a broad variety of engineered components and products that can be found in most homes, offices and automobiles. LEG operates in four business segments: Residential Furnishings, Industrial Materials, Commercial Fixtures & Components and Specialized Products.

LEG is part of the Consumer Goods sector and Home Furnishings & Fixtures industry. Current yield is 4.6%.

Dividend Reliability: A stock's dividend safety and

McDonald's Corp. (MCD) is the largest fast-food company in the world with over 33,000 restaurants in 119 countries. MCD operates in the Services Sector and Restaurants Industry.

Dividend Reliability A stock's dividend reliability is determined by its dividend payment history as well as its current financial health. Total of four points available.

• The number of Consecutive Dividend Payments -10 to 25 Years = 1 Point; More than 25 Years = 2 Points
• Free Cash Flow Payout Ratio - Less than 60% = 1 Point
• Debt to Total Capital - Less than 45 % = 1 Point

Dividend Growth A company needs to be growing its dividend on an annual basis. The growth of its dividend should be at a respectable rate, and the free cash flow payout ratio should not be increasing over time. Total of four points available.

• Number of Consecutive Dividend Increases

Company Description: Hasbro Inc. (HAS) is a branded play company providing children and families around the world with a wide-range of entertainment offerings based on the Company's world class brand portfolio. Hasbro provides its global customer base with well-known brands such as Transformers, Littlest Pet Shop, NERF, Playskool, My Little Pony, G.I. Joe, Magic: The Gathering and Monopoly. Hasbro is part of the Consumer Goods sector and Toys & Games Industry.

Dividend Reliability A stock's dividend safety and reliability is determined by its dividend payment history, its current financial health, and its volatility in relation to the market as a whole. A total of 5 points available.

• The number of Consecutive Dividend Payments -10 to 25 Years = 1 Point; More than 25 Years = 2 Points
• Free Cash Flow Payout Ratio - Less than 80% = 1 Point
• Debt to Total Capital -

Eli Lilly & Co. (LLY) discovers, develops, manufactures, and sells pharmaceutical products worldwide. LLY is the 10th largest pharmaceutical company in the world and operates in the healthcare sector.

Dividend Reliability

A stock's dividend safety and reliability is determined by its dividend payment history, its current financial health, and its volatility in relation to the market as a whole. A total of 5 points are available:

• The number of Consecutive Dividend Payments -- 10 to 25 Years = 1 Point; More than 25 Years = 2 Points
• Free Cash Flow Payout Ratio -- Less than 80% = 1 Point
• Debt to Total Capital -- Less than 75% = 1 Point
• Beta < 1.0

Dividend Growth

Although growth isn't as important when we are buying for current income, we still want a history of increases as well as demonstrated ability to keep up with inflation. A total of 3 points available.

My analysis thus far has been focused mainly on dividend growth stocks. However, many older dividend investors are looking for cash in their pocket right now. Investors who are looking to supplement or even replace their current income are looking for dividend stocks that can give them a 4%+ yield on their investment. They want the increases as well, but they're more concerned with the larger dividend payment now as well as a safe, non-volatile investment. At some point I'll be in their shoes too. I won't be reinvesting my dividends forever, eventually I will be using those dividends as income.

In today's current economic environment, it's no wonder that dividend stocks have become a popular investment choice. CDs, savings accounts, and Treasury Bills are barely paying you anything back in interest. I can't understand why anyone would "invest" their money in one of these when they can't keep up

United Parcel Service (UPS), a package delivery company, provides transportation, logistics, and financial services in the U.S. and internationally. It operates in three segments: U.S. Domestic Package, International Package, and Supply Chain and Freight. UPS is part of the Services Sector and Air Delivery and Freight Services Industry.

Dividend Reliability

A stock's dividend reliability is determined by its dividend payment history as well as its current financial health. A total of four points are available:

• The number of Consecutive Dividend Payments -- 10 to 25 Years = 1 Point; More than 25 Years = 2 Points
• Free Cash Flow Payout Ratio -- Less than 60% = 1 Point
• Debt to Total Capital -- Less than 45 % = 1 Point

Dividend Growth

A company needs to be growing its dividend on an annual basis. The growth of its dividend should be at a respectable rate, and the free cash flow

Company Description: Target Corp. (TGT) operates about 1,500 Target and 250 SuperTarget general merchandise stores across the U.S. TGT is part of the Services sector.

Dividend Reliability A stock's dividend reliability is determined by its dividend payment history as well as its current financial health. Total of four points available.

• The number of Consecutive Dividend Payments -10 to 25 Years = 1 Point; More than 25 Years = 2 Points
• Cash Flow Payout Ratio - Less than 60% = 1 Point
• Debt to Total Capital - Less than 45 % = 1 Point

Dividend Growth A company needs to be growing its dividend on an annual basis. The growth of its dividend should be at a respectable rate, and the free cash flow payout ratio should not be increasing over time. Total of four points available.

• Number of Consecutive Dividend Increases

Meredith Corporation (MDP) is a media and marketing company that engages in magazine publishing and related brand licensing, television broadcasting, integrated marketing, interactive media, and video production businesses in the United States. Its more popular print publications include Better Homes and Gardens, Family Circle, and Ladies' Home Journal. It also owns 12 network-affiliated television stations and 30 websites, among other assets.

Dividend Reliability A stock's dividend reliability is determined by its dividend payment history as well as its current financial health. Total of four points available.

• The number of Consecutive Dividend Payments -10 to 25 Years = 1 Point; More than 25 Years = 2 Points
• Cash Flow Payout Ratio - Less than 60% = 1 Point
• Debt to Total Capital - Less than 45 % = 1 Point

Dividend Growth A company needs to be growing its dividend on an annual basis.

In my last article I discussed how I am going to help my son get a head start in investing and how to keep him interested in dividend growth stocks as he gets older. I am excited about the potential of this plan; the only problem is that the government is going to get their share of it as well. If you are reading this then I assume you are not a Communist that enjoys paying taxes, so I'd like to show how you can grow a small amount of money for your child into a very large sum without having to worry about a politician getting their hands on one cent.

For those of you not familiar with a Roth, shame on you, please read this article. Roth IRA's are a powerful retirement tool that is not utilized enough by individuals who have the opportunity to do

This past September I had a major financial impact that occurred in my life when my son was born. Like most Dads I have since envisioned teaching my son about sports, girls, and of course dividend stocks. What's that? Most Dads don't teach their sons about dividends stocks? Well that's a shame, consider my son a leg up then.

Within a couple of days of receiving his SSN I had opened a 529 plan and custodial brokerage account and set up automatic deposits for each. As I contemplated what his first DRIP stock would be I realized I was approaching this choice as if it was my own portfolio. Or course I wanted to buy a solid dividend growth stock that we could reinvest dividends into for the next 60 years, but I also wanted this to be a great teaching tool for my son. Sure the ALFAC (AFL) duck

Company Description: Aflac (AFL) offers supplemental health insurance and life insurance in the two largest insurance markets in the world, the U.S. and Japan. In addition to its cancer policies, the company has broadened its product offerings to include accident, disability, and long-term care insurance. It markets its products through independent distributors, selling most of its policies directly to consumers at their places of work.

Dividend Reliability A stock's dividend reliability is determined by its dividend payment history as well as its current financial health. Total of four points available.

1. The number of Consecutive Dividend Payments - The longer a company has been paying a dividend, the more ingrained the dividend payment is part of the company culture and the less likely it would be removed. (10 to 25 Years = 1 Point More than 25* Years = 2 Points)

• AFL has paid a regular

Since I live in the city I'm not able to go to Wal-mart (WMT) to do my shopping very often. Of course there are several in the surrounding metropolitan area so I get the opportunity from time-to-time. Honestly I don't like the idea of going to them because the store is always crowded (no matter what time it is) but once I'm inside I'm amazed at the time and money I end up spending. I don't think I've ever come out of a Wal-mart store with only what I went there looking for. When something like that happens you know it's a good business and one that should be around for a very long time. I had this realization a few years back and was lucky enough to purchase shares of Wal-mart for under $50 / share. Let's take a look and see if the company still rates as a

I was an avid baseball card collector when I was a kid. It was one of the few things that would tempt me to spend my allowance. I loved the smell of a newly opened pack of cards and even the cardboard crunch gum that was in the earlier packs... well at least for the two minutes that it had flavor. Although I loved the game of baseball and reading stats about players, what I really cared most about was the value of the card. Getting a card of my favorite player (Ozzie Smith) was great, but what I most wanted was a rookie card of a potential up-and-coming star because that's where the greatest potential for increased value was.

I remember when Topps brand would release "Future Stars" cards for players they thought were going to be, well, future stars. Of course they were basing this tag on a

Company Description: Altria Group (MO), formerly Philip Morris, engages in the manufacture and sale of cigarettes, smokeless products, and wine in the United States and internationally. Notable tobacoo brands ownd by Altria include Marlboro, Virginia Slims, Parliament, Copenhagen, and Skoal. The company also produces and sells blended table wines under the Chateau Ste. Michelle and Columbia Crest names; and distributes Antinori and Villa Maria Estate wines and Champagne Nicolas Feuillatte in the United States.

Dividend Reliability A stock's dividend reliability is determined by its dividend payment history as well as its current financial health. Total of four points available.

1. The number of Consecutive Dividend Payments - The longer a company has been paying a dividend, the more ingrained the dividend payment is part of the company culture and the less likely it would be removed. (10 to 30 Years = 1 Point More than

Company Description: Kimberly-Clark Corporation (KMB), together with its subsidiaries, engages in the manufacture and marketing of paper and health care products worldwide. The company owns several major brands including Huggies, Pull-Ups, Kotex, Depends, Kleenex, Cottonelle, Viva, and Scott.

Dividend Reliability A stock's dividend reliability is determined by its dividend payment history as well as its current financial health. Total of four points available.

1. The number of Consecutive Dividend Payments - The longer a company has been paying a dividend, the more ingrained the dividend payment is part of the company culture and the less likely it would be removed.

10 to 30 Years = 1 Point

More than 30 Years = 2 Points

• Kimberly-Clark has paid a dividend for 26 Years. 1 Point

2. Cash Flow Payout Ratio - The percentage of free cash flow that is paid out as dividends.

Less than 60% = 1 Point

• Cash flow

Four years ago you would be hard pressed to put together a dividend portfolio without owning a few banks. In fact, the financial sector of the S&P 500 Index paid $51 billion in dividends to shareholders in 2007. Everyone is well aware of the major financial meltdown that occurred soon after causing many banks to cut or even suspend their dividends. By 2010, the financial sector was only responsible for about $19 billion in dividends, a drop of 62%.

Despite the dark cloud that still resides over banks today, there are positive signs that would lead one to believe a rebound could be near. Banks should continue to be rewarded as the Fed holds short-term rates near zero. Also, the Fed's recent implementation of "Operation Twist" that aims to push down long term interest rates on everything from mortgages to business loans, will give people and corporations an additional incentive