4 20%+ Dividend Growth Stocks To Energize Retiree Income

Apr. 04, 2012 2:03 AM ETCHRW, EXPD, FDS, NLY, TEVA24 Comments
Todd Johnson profile picture
Todd Johnson

I recommend retirees consider companies possessing high growth rate dividends. Proper research can provide ideas to ensure retirees have a growing income portfolio to offset the costs of rising everyday living expenses. I will address 4 companies possessing an average dividend growth rate exceeding 20% per annum over the past 10 years. In addition, I will highlight one stock that is benefiting due to the historical low Treasury Bond yields.

I firmly believe a retiree's portfolio should have cash cow stocks. These are stocks that offer high yield dividends but aren't growing in revenues or profits They pay a significant percent of their net income per share as dividends. They also commonly possess a high debt to market capitalization level. Secondly a portfolio should have dividend stocks for the "economic moment". Every economic cycle has specific stocks which are doing very well due to specific economic data. For example, oil stocks should excel when oil prices are high.

1. FactSet Research Systems Inc. (FDS)

FactSet Research Systems provides integrated financial information, analytical applications, and client service to buy side and sell side customers. Buy side customers represent 80% of the company's customer base. The sell side represents the other 20%.

The company grew their client count by 53 accounts for the second quarter of 2012. This data is as of February 29th.

The company continues to provide a vital product to the financial community. The product is not an inexpensive offering. This allows the company to grow earnings per share and increase dividends on an annual basis. The company purchased 507,800 shares during the second quarter.

I recommend these shares due to the company's focus and success. The product is a necessary tool for the buy side and sell side financial community. The company had 50 million shares in 2002. Through buybacks, the company

This article was written by

Todd Johnson profile picture
Invest. Manage risk. Communicate. Educate yourself. Make profits. . Visit http://dividendlab.com Hello, My name is Todd Johnson. I’m a family man, sports fiend, health nut, technology buff, long-time stock investor, and a very lucky mountain climber, all of which has shaped my philosophy as a professional investor for the last 30 years. As my interests might suggest, I am always looking for the upside while striving to minimize risks. My new passion, which I have realized through DividendLab.com project, is helping other investors learn more about investing; investing in stocks and other assets that are subject to wide price swings can actually enhance their returns when the right investment strategy is applied. To that end, I read company 10k and 10q statements so they can skip them. I compile and analyze the market research that isn’t always at their fingertips. And I don’t make any investment recommendation without committing my own funds first, which is the purest form of accountability.

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