If you like the stability of dividend income and are looking for new investing ideas, you may be interested in this list.
We ran a screen on "dividend champions," or companies that have consistently increased their dividends over the last 25 years. We screened these stocks for those with current "Buy" ratings from Deutsche Bank (analysts at Deutsche Bank believe these stocks will outperform).
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.
We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.
Do you think these stocks will continue to raise their dividends? Use this list as a starting point for your own analysis.
List sorted by ratings date.
1. Procter & Gamble Co. (NYSE:PG): Provides consumer packaged goods in the United States and internationally. Market cap of $178.29B. Dividend yield at 3.24%, payout ratio at 48.59%. On 04/29/2011, Deutsche Bank had a Buy rating on the stock. The stock has gained 1.25% over the last year.
2. Colgate-Palmolive Co. (NYSE:CL): Manufactures and markets consumer products worldwide. Market cap of $44.21B. Dividend yield at 2.54%, payout ratio at 44.15%. On 04/29/2011, Deutsche Bank had a Buy rating on the stock. The stock has gained 17.25% over the last year.
3. Emerson Electric Co. (NYSE:EMR): Operates as a diversified manufacturing and technology company. Market cap of $38.29B. Dividend yield at 3.07%, payout ratio at 42.34%. On 03/31/2011, Deutsche Bank had a Buy rating on the stock. The stock has had a good month, gaining 12.49%.
4. Air Products & Chemicals Inc. (NYSE:APD): Provides atmospheric gases, process and specialty gases, performance materials, equipment and services worldwide. Market cap of $18.56B. Dividend yield at 2.63%, payout ratio at 38.99%. On 02/18/2011, Deutsche Bank had a Buy rating on the stock. The stock has gained 4.18% over the last year.
*Ratings data sourced from Yahoo! Finance, all other data sourced from Finviz.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.