Dividends again in the spotlight for 2012

Investors tired of all the volatility will lead an even bigger push into dividend stocks next year. Here are some picks.

By Kim Peterson Dec 12, 2011 3:53PM
With all the uncertainty and drama hitting investors this year, 2012 will see an even greater emphasis on income.

We already saw investors rush into dividend stocks in 2011, seizing the benefits of stability, rising payouts and more favorable tax treatment. That should continue next year.

Post continues below.
Josh Brown of The Reformed Broker named income worship as one of his dominant investing themes of 2012. "I believe that the big lesson of the past year is that market timing, for most investors, was a fools game," he writes. "With almost daily 200-point swings in both directions, many investors who chose to get in and out ended up doing little more than whipsawing themselves in the end."

Dividend stocks aren't the only way in here. There are also cash distributions from master limited partnerships, which are structured to avoid paying corporate income tax. (You can read more about MLPs here.)

But let's get back to dividend stocks. A number of websites have listed the best dividend stocks around. I'll summarize them below.

DuPont (DD). TheStreet.com likes DuPont for 2012, saying a dividend hike may be on the way because profits have been steadily rising. The current yield is around 3.4%. DuPont was also getting praise for its seed division, particularly the drought-tolerant corn seed called AquaMax.

Veolia (VE). Trash and waste removal is definitely in the "can't live without" column, and Brian Stoffel of The Motley Fool thinks that's a reason to buy Veolia, which has an 11.5% yield. The French company focuses on water and sewage as well as trash removal. Even there are questions for any major company in Europe right now, Stoffel has high hopes for Veolia's sewage treatment and desalinization services.

Waste Management (WM). CNBC's Jim Cramer jumps on this waste-removal idea and picks Waste Management as one of his top dividend stocks. The company has increased its dividend by 81% over the last seven years, and Cramer thinks that could continue. The yield is 4.1%

Kraft (KFT). It's hard to find a safer stock, and TheStreet says sales are likely to rise 11% to 12% this year. But there is a question mark here. Kraft intends to separate its grocery and snack businesses next year, and that leaves the fate of its dividend a little up in the air. With that in mind, General Mills (GIS) might be a better dividend play.

Royal Bank of Canada (RY). Canadian bank stocks are all the rage because they look so good compared to their American counterparts. Canada has a strong domestic economy and a stable government, writes Lou Basenese of iStock Analyst. Royal Bank of Canada has seen shares skyrocket lately, and boasts a 4.5% yield.

Tags: DDKFTWM
1Comment
Dec 12, 2011 5:16PM
avatar

Inflation, Rally, Payouts, Slump, Jump, Worries, Buy, Investors, Money, Dividends, Volatility, Pick, Spotlight, Deficit, 2012, Elections, Buffett, Profits, Occupiers, Tea Party, RoamNey.....

 

What else is there but a language junk trying to make the day................

 

What a pity not to have a more interesting article....

Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

124
124 rated 1
282
282 rated 2
455
455 rated 3
624
624 rated 4
642
642 rated 5
665
665 rated 6
610
610 rated 7
460
460 rated 8
287
287 rated 9
167
167 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
KOGKODIAK OIL & GAS Corp10
TWXTIME WARNER Inc10
BBBYBED BATH & BEYOND INC10
FOXATWENTY-FIRST CENTURY FOX Inc CLASS A10
COPCONOCOPHILLIPS9
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.