Favorites among dividend aristocrats
These quality stocks have raised their payouts annually for at least 20 years.
By Chuck Carlson, DRIP InvestorLow interest rates remain a positive for dividend stocks in 2013. As it becomes more difficult to generate meaningful returns from fixed-income investments, you are likely to see a transition from bonds to stocks in 2013.
In fact, I believe this transition is already taking place and will accelerate if the stock market can maintain its upward pace that we have seen so far this year.
Clarity on the tax situation is also a plus. Admittedly, I'm not a fan of seeing anyone's tax rates on dividends increasing. Nevertheless, given where dividend rates were headed without the fiscal-cliff compromise, the situation could have been much worse.
With much of the tax uncertainty on dividends removed, and many investors left unaffected by the tax changes, I expect there to be renewed interest in dividend stocks.
In addition, there's plenty of room for more dividend increases. By historical standards, the percentage of corporate profits that are being paid out to shareholders in the form of dividends is still on the low side.
Corporate America is paying out just slightly more than one-third of profits in dividends, down from the historical average of 52%. Thus, companies have plenty of flexibility to boost dividends if they so choose.
If you are looking to add quality dividend payers to your portfolio, consider stocks that S&P has coined "dividend aristocrats." These are stocks that have raised dividends annually for at least 20 years.
Some of my favorites among these dividend aristocrats are Aflac (AFL), the insurance company; American States Water (AWR), a water utility in California; and Exxon Mobil (XOM), the oil giant.
Others that merit attention from long-term investors are PepsiCo (PEP) and Procter & Gamble (PG). Both offer solid yields and ample dividend growth, and I expect both to perform better in 2013 as earnings recover.
Another common thread among these picks is that they all allow any investor to buy the first share and every share of stock directly from the company.
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Limo Pat, not to be a smart azz, just asking a question....What is a CEF ??
Energy Fund or something..??
If I don't invest in certain types of instruments or Funds, I don't always pay that much attention to..
Have not invested in Mutual Funds for over 10 years now..
And have yet to buy my first ETF..
But build our own Mutuals, with diversification in about 10 Sectors; Along with reaping the dividends I also collect the management, and trading fees....(for my work and research)
Or pay very small amounts to trade, irregardless of amounts or monetary value...?
Learning to trade has been the answer to my dreams, and where I learned how to trade because I've never traded before is a place called Traders Superstore. These guys are great so helpful to a new trader like I was, if you get stuck with something or need help they are there to help you and very knowledgeable in trading. So I tell people stop working for somebody else and work for yourself, just learn to trade.
TRADING is a tricky thing or operation?...Usually takes years to understand some of the INs & Outs..
Then BOOM along comes a 2008 and early 2009..
Much you have learned goes out the window; Along with perceptions and money...?
Even the Big Boys and Seasoned Market people did and had to admit that....
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