Leif Peterson

The 10 Best U.S. Dividend Stocks

My guess is that the dividend yields of these stocks are low, and in the 3-4% range. There are other well run US corporations whose yields are twice as high, whose risk of reducing dividend payouts is low. These other companies have also increased their dividend yield and have shown increased earnings through the recent subprime mortgage crisis of Sept/Oct '08.

Market Timing vs. Dividend Income Strategies

Good article. As you know, however, there are other stocks with 2 to 3 times the yield, whose earnings are continually growing. Here's a gift to the new dividend investor: Kinder Morgan (KMP) a natural gas pipeline MLP, which has a continual yield of 8% and has done very well over the last year. Altria(MO) and Phillip-Morris (PM) (if you have no problem owning tobacco stock) have always done well, but can be at huge risk for law suits. The other basics to a depression-proof dividend portfolio are Pfizer(PFE), Procter & Gamble(PG), McDonalds(MCD), Duke Energy(DUK), Con Edison(ED), AXA (huge French insurance conglomerate), YUM Brand Foods (YUM, Taco Bell, Pizza Hut, KFC especially in China), and Diagio (symbol DEO, produces Smirnoff vodka, Johnnie Walker Scotch whiskies, Captain Morgan rum, Baileys Original Irish Cream liqueur, JeB scotch whisky, Tanqueray gin, Guinness stout, Jose Cuervo) are not bad. Coca Cola (KOF) in Latin America always does well. Dont' forget General Mills (GIS) which did very well through Sept-Oct last year. Last, big oil, like Exxon Mobil (XOM) and Chevron (CXZ) are portfolio musts.

A lot of the above listed stocks have 2-3% yields which is low. If you do some homework or join some dividend services, you can find depression-proof stock with 8-12% yields.

The basic requirements for a depression dividend stock portfolio right now are:

1. Continually increased earnings through the Sept-Oct crash last year and over Q1, Q2 this year.

2. Low risk for reducing dividend.

3. Greater than 500 million USD (or >1b) in market capitalization.

4. Either a pharmaceutical, big oil, or big consumer staple.